8.06.2020 15:46
(Act. 8.06.2020 15:46)
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The German company promised the investigators full cooperation
© APA (dpa)
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The German payment service provider Wirecard, which was targeted by the public prosecutor’s office because of suspicion of misinformation from investors, and Markus Braun, head of the Austrian company, promises to cooperate with the investigators. “All of the data requested by the authorities as part of the search was made available at short notice,” the company said.
The Management Board and the Supervisory Board do not want to make any further public statements, since this is an ongoing procedure. The promise of cooperation comes against the background of months of allegations of lack of transparency and willingness to provide information. The public prosecutor’s office in Munich I initiated an investigation against the four Wirecard board members – including CEO Markus Braun – and had the corporate headquarters in the Munich suburb of Aschheim searched after a report by the BaFin financial regulator.
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The question is whether the payment service provider published misleading information for investors in two mandatory stock exchange notices from March and April. In these two communications, Wirecard had stated that a special inspection of the annual financial statements 2016, 2017 and 2018 by the auditing firm KPMG had so far not shown any evidence of manipulation of the balance sheet.
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In fact, the KPMG examiners then stated in their report, which was completed at the end of April, that they could not clarify essential questions due to the lack of documents. The special audit was triggered by a series of reports in the British “Financial Times”, which accused the company of manipulating the balance sheets. In their report, the KPMG auditors complained several times that Wirecard had delivered information late or not at all.
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Even large shareholders such as DWS – Deutsche Bank’s investment subsidiary – have issued better warnings in the past. DWS did not currently want to comment, but the company has reduced its stake in Wirecard in recent weeks. Investors sold some of the stocks vigorously: Wirecard shares then reduced their initially significant drop of more than seven percent on Monday as the course of trading progressed.
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There is great excitement among investors about the turbulence. “We are showered with inquiries, which we have not experienced since the times of the Neuer Markt,” said Marc Tüngler, general manager of the shareholders’ association DSW. “Some of the reactions are highly emotional.”
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Wirecard is involved in legal disputes in several ways, both under criminal and civil law. The Munich public prosecutor’s office not only investigates company boss Braun and his colleagues on the board, but also examines possible market manipulation by punters. There are also civil lawsuits – on the one hand, Wirecard sued the “Financial Times” for reporting them, on the other hand, there are lawsuit threats and announcements by shareholders against Wirecard.
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DSW general manager Tüngler said: “The most important thing in this situation is: How do you manage to bring peace again?” The group, which has been growing rapidly for years, has still not submitted any financial statements for 2019, which should be made up for on June 18. So far, the certificate of the auditing company EY is missing. If the auditors do not issue an unrestricted confirmation, the pressure on CEO Braun will increase, who has already faced withdrawal requests.
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The shareholders’ association does not want to pour any more oil on the fire, but keeps options open in the event of additional complications: “As DSW, we first want to wait for the certified numbers to be presented on June 18 and then decide how we will position ourselves at the Annual General Meeting”, said Tüngler. “Decisions on a special audit as well as possible lawsuits have not yet been made at DSW.”
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Wirecard – the company processes payments to retailers and consumers at cash registers or in online shops – itself wants to spread optimism: “Society is confident that the facts will be cleared up and that the allegations will prove to be unfounded,” says the short opinion. In the opinion of the Wirecard Management Board, the investigations will not have any impact on business: he confirmed the goal of an operating profit of EUR 1 to 1.12 billion this year.
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