Wirecard: The downfall?
By Dr. Andrea Galli
The negative news about Wirecard is not abating. Today there was a raid on the branch in Singapore. The company speaks of a completely normal process. Is it really?
It's going to be tight for Wirecard. The news doesn't promise anything good. Today the offices in Singapore have been searched. The background to the raid is still unclear. Allegedly it is about balance sheet fraud. Wirecard rejects all blame. The company wants to cooperate with the authorities. The question arises: is there really nothing wrong with the accusations of the last few days in the Financial Times or is it just the tip of the iceberg?
Wirecard speaks of a "normal procedure" in connection with the raid in Singapore. One works together with the police. The accusations against employees of the company are unfounded.
However, the matter is not entirely normal. The authorities and the public prosecutor's office actually only intervene when there is a well-founded suspicion. And this well-founded suspicion seems to exist.
The search is related to the recent allegations in the Financial Times and makes them even more explosive. On Thursday, the newspaper had published a third article and put the accusations against Wirecard into concrete terms. It now talks about balance sheet manipulation and money laundering, which may have taken place over a longer period of time and in several Asian countries. In addition, it is alleged that two top managers in Germany were at least informed.
Should this fact prove to be true, then Wirecard is really threatened with trouble.On the stock market, there are now fears that even the last article in the Financial Times will not be an end in itself. Further revelations are likely in the future. Accordingly, Wirecard's share price has plummeted further and is now in free fall.