European payment giants fraud is not over yet, and the political earthquake in Germany is just beginning

 European payment giants fraud is not over yet, and the political earthquake in Germany is just beginning

Focus 1: when did the German government know about the illegal conduct of wircard

Back in September 2019, nine months before the exposure of the financial fraud of wirecard, Lars Hendrik R u00fc ller, chief economic adviser of the German Chancellors office, met with a delegation of wirecard in the prime ministers office.

However, as early as the end of January 2019, the British media wrote an article questioning the use of suspicious transactions to clean up accounts by wirecard company, and the Singapore police have subsequently launched an investigation into the possible fraud of wirecard company. However, in Germany, wirecard company is still regarded as one of the most successful financial technology companies in Germany.

Burkhard Ley, the former chief financial officer of wirecard, who led the delegation to meet with basil, was arrested a year later for fraud by German police, but he has so far denied any wrongdoing.

Members of the German Parliament are puzzled by the high-level lobbying privilege given to wircard by the German government. At present, various evidences show that although there were doubts about wirecard within the German government at that time, it still allowed its senior management to meet with senior staff like roller, and even endorsed wirecard internationally.

A senior German official revealed in an interview with foreign media that, according to the current information, the real situation is chilling, the extent of the suspected crime of wirecard is far beyond my imagination. He added that the government agencies and the audit institutions were all defeated in the incident.

At present, there is evidence that the German federal financial intelligence service has not transmitted dozens of reports about wirecards suspicious economic activities to the German prosecutors office.

Focus 2: why does the federal financial supervision agency not act

The wirecard scandal also accidentally exposed the weaknesses of the German financial regulatory system, especially the inaction of its market regulator, the German federal financial supervision agency, which also made the German government feel embarrassed.

In many years of interviews with German financial figures, the German interviewees have been proud of their strict regulatory measures. However, with the financial fraud incident of wirecard, German parliament members found that after the previous media disclosed that the wirecard had accounting problems, the German federal financial supervision agency and the criminal prosecutor in Munich did not conduct a substantive investigation on the company, but directly issued a statement that short selling of wirecard shares was prohibited. For the first time in German history, German officials have banned short selling of single stocks.

According to foreign media reports, tilp, the German law firm leading the lawsuit against wirecard, said that at present, more than 30000 shareholders are required to participate in the lawsuit.

No government agency has contributed to the disclosure of this case, whether it is the German financial regulator, the German Federal Financial Intelligence Agency, or the German prosecutors, they have not contributed. Said Florian Toncar, a member of Parliament for the German Liberal Democratic Party.

Although the German parliaments Commission of inquiry on the matter has not yet been formally established, MPs have prepared a number of sharp questions.

For example, why would J u00fc RG kukies, Germanys deputy finance minister, visit wirecards Munich headquarters when Markus Braun, the companys chief executive, celebrated his 50th birthday in November 2019?

Why is the federal financial regulator so reluctant to investigate a company that has been producing negative news for months in a row? And when the agency finally investigated wirecard, employees of the federal financial supervision agency were still trading in wirecard shares?

Focus 3: what is the level of lobbying

Wirecard company was once regarded as the most successful case of German financial technology. In 2018, wirecard company once replaced German commercial bank and became a member of German DAX30 index. The DAX30 index includes the 30 most outstanding large enterprises in Germany.

According to the timetable provided by the German Chancellors office, on September 3, 2019, Merkel met with former German defense minister Karl theodorzu Guttenberg. In 2011, Gutenberg was forced to resign after being accused of plagiarism and became co-founder of Spitzberg partners, one of its clients, which is wirecard.

In August, Merkel defended her move, saying: it is common practice not only in Germany (but also in other countries around the world) to mention the companys demands during her overseas visits.

Merkel said that at that time she did not know that the company had violated the rules, and that wirecard was still a DAX30 index company at that time.

Paus, a Green MP, called for a thorough reform of the German lobbying system. The question is: who can visit the prime minister? There seems to be no clear criteria. No one is checking who is knocking and who can be let in. She said.

With the deepening of the case, the German media found that Gutenberg was not the only former government member who lobbied for wirecard.

On September 11, 2019, Klaus Dieter fritsche, a former official in the German Chancellors office who was responsible for coordinating the work of German intelligence agencies, introduced ray and others to rolle. According to the schedule of the German chancellery, the meeting was a meeting to get to know each other, and wirecard informed Basil of possible business opportunities in China.

In June 2020, wirecard admitted that a 1.9 billion euro amount on its account did not exist. The prosecutors office in Munich, where the company is located, believes that wirecard has been providing false certificates of profits since 2015, causing losses of about 3.2 billion euros to banks and investors.

At present, wirecard has gone bankrupt, several executives have been arrested or at large, and the market value of 13 billion euro was nearly cleared in a week.