The German payment processor Wirecard has instructed accountancy firm KPMG to conduct independent investigations into allegations of accounting fraud. Last week, Financial Times put documents of the company online which, according to the business newspaper, would show that Wirecard has fraudulently jacked up profit and revenue figures.
Wirecard already firmly denied accounting fraud last week, but then did not want an independent investigation. The company is now opting for this, hoping that an independent investigation will free the company.
Suspected suspicion revolves around a Wirecard partner company, Al Alam from Dubai, which, according to figures, accounted for hundreds of millions of dollars for customers and half of Wirecard’s operating result in 2016. According to FT, it is doubtful that Al Alam indeed did so much work for Wirecard, because many companies that were reported as customers would never have heard of the company.
Wirecard previously accused FT journalists of playing under a cap with investors speculating on a fall in prices. The newspaper then reported on accounting irregularities at a subsidiary in Singapore.
Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at nicholas.dekramer@economicinform.com
