FT: Wirecard execs allegedly gave nod to fake transactions

Wirecard has been drawn into a London lawsuit between former minority shareholders of the Indian business, who claim they were cheated before the embattled payments company bought the Indian firm in 2015.
Wirecard has been drawn into a London lawsuit between former minority shareholders of the Indian business, who claim they were cheated before the embattled payments company bought the Indian firm in 2015. PHOTO: REUTERS

FRANKFURT • Wirecard executives in Germany allegedly approved potentially fraudulent transactions totalling €2 million (S$3.1 million), according to a report by the Financial Times (FT).

Citing documents including invoices and messages, the FT reported that four payments of €500,000 each were transferred from Germany to a Singapore account in March last year and that those transactions are at the centre of a fraud investigation by Singapore police. Wirecard generated about €2.1 billion in sales last year.

The funds, which were requested by regulators for a licence application to issue prepaid cards, were then intended to be transferred to Wirecard's Hermes unit in India, according to the report.

Wirecard has been drawn into a London lawsuit between former minority shareholders of the Indian business, who claim they were cheated before the embattled payments company bought the Indian firm in 2015.

The allegations are not new and appear to be based on a preliminary report, Wirecard told the FT, while the outcome of its full probe will be "available shortly".

  • €2.1billion

  • Amount Wirecard generated in sales last year

Wirecard - a member of Germany's benchmark DAX index - has been rocked by a series of earlier FT reports over alleged fraud at its Singapore office.

The concerns prompted wild swings in the share price, with its value falling at times nearly 50 per cent.

The volatility prompted Germany's regulator to take the unprecedented step of banning new short sales.

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A version of this article appeared in the print edition of The Straits Times on March 23, 2019, with the headline 'FT: Wirecard execs allegedly gave nod to fake transactions'. Print Edition | Subscribe