Skip to content
LVC-privat

LVC-privat

My Accounting

Primary Menu
  • Advertising & Marketing
  • Finance & Accounting
  • Finance & Oportunity
  • Business & Finance
  • News Business
  • Business Ideas
  • About Us
    • Advertise Here
    • Contact Us
    • Privacy Policy
    • Sitemap
Watch
  • Home
  • German Finance Minister Knew of Wirecard Issues a Year Before Collapse
  • Business & Finance

German Finance Minister Knew of Wirecard Issues a Year Before Collapse

Amanda T. Noriega 19/07/2020 6:35 AM

(Bloomberg) — German Finance Minister Olaf Scholz was aware of potential market manipulation at Wirecard AG almost a year and a half before the company collapsed, putting pressure on a key figure in Angela Merkel’s government.

Financial watchdog BaFin informed Scholz in February 2019 about the case “because of the suspicion of a violation against the prohibition of market manipulation,” according to a quality wigs report by the Finance Ministry seen by Bloomberg.

His early knowledge of the allegations swirling around Wirecard increases scrutiny on the highest-ranking Social Democrat in Merkel’s coalition and lays bare the delicate political dynamics just over a year before the next election.

Presented to the heads of the parliamentary finance committee on Thursday evening, the report creates a new opening hair pieces online for critics who accuse German authorities of being too lax by failing to pursue fraud allegations of a company that aspired to be a leading light in Europe’s tech industry.

The minister was told that BaFin would “investigate in all directions,” said the document, which was reported earlier by German media.

While Scholz has denied any direct involvement in the Wirecard scandal, he has struggled to insulate himself from the issue. His deputy, Joerg Kukies, confirmed on Wednesday that he met the digital payments company’s then-Chief Executive Officer Markus Braun twice at the end of last year, including once on the manager’s birthday.

Scholz’s Problem

Merkel kept the scandal wig at arm’s length, saying the responsibility to clear up the issue lies with Scholz.

“What information the Finance Ministry possessed at what time will be disclosed by the ministry to the public, and the chancellor sees that as good and correct,” Martina Fietz, Merkel’s deputy spokeswoman, said Friday during a regular government press conference.

She stopped short of stating that Scholz has the German leader’s full support. “The chancellor works faithfully with all members of the cabinet,” Fietz said.

Despite the mounting pressure, Merkel would be hard pressed to take action against her vice chancellor without bringing down the coalition, an unlikely scenario in the midst of a global pandemic and during Germany’s six-month presidency of the European Union.

Political Support

Wirecard, a member of Germany’s benchmark DAX index, became a national disgrace when it said last month that a quarter of its balance sheet probably doesn’t exist. That set off a blame game between banks, auditors and public authorities and revealed large gaps in the country’s oversight of non-financial companies.

In a closed-door meeting of the Bundestag’s finance committee late Thursday, Deputy Finance Minister Kukies said he was unaware that it was Braun’s 50th birthday when he met the former CEO on the sidelines of a banking conference in Munich last November, according to minutes of the session seen by Bloomberg.

Kukies said he discussed a KPMG audit, which Braun had looked forward to as “clearance.” The ministry official also said that Scholz had shown great interest in the Wirecard case and had repeatedly asked him for updates.

The opposition has called for a special meeting of the finance committee during the parliamentary summer break because it sees many questions still unanswered.

‘Highly Problematic’

“Politically it’s highly problematic that the finance minister got involved with the case at such an early stage,” said Danyal Bayaz, a lawmaker with the Green party. “Scholz had Wirecard on his radar, he had an interest, but this interest apparently never became big enough to prompt him to take action.”

Any decision over Scholz’s fate would rather lie with the SPD, whose members last year rejected his bid to lead the party in favor of a duo who voiced more support for policies such as a wealth tax, a higher minimum wage and public spending.

Still, voter backing of the SPD remains mired at historic lows, and the party has begun to maneuver in support of Scholz’s bid to run for the chancellorship. That fragile balance would be upended if the politician’s standing was challenged.

The Finance Ministry waved off suggestions that Scholz didn’t act appropriately. German regulators pursued accusations against Wirecard over the years and the ministry was regularly informed about the state of the various probes, Finance Ministry spokesman Dennis Kolberg said at the government briefing.

Reform Push

The ministry is “actively” looking to overhaul accounting oversight in the aftermath of Wirecard’s collapse and will present a plan “as quickly as possible,” Kolberg said.

BaFin, which is overseen by the Finance Ministry, has come under criticism for appearing to focus more on targeting investors who alleged irregularities at Wirecard and made bets against the stock, rather than the company itself.

The regulator said in March last year that it was investigating both sides. BaFin President Felix Hufeld said last month that his institution is among those parties responsible for the failure to catch what he has called “massive fraud” at the company. Still, he defended BaFin’s actions against so-called short sellers as being a legal obligation.

Despite outrage over the shortcomings, political opponents have stopped short of calling for Scholz to step down.

“The sloppiness when it comes to controlling billion-dollar companies is simply inconceivable,” Bernd Riexinger, head of the Left party, said in an emailed statement. “Scholz urgently needs to explain why suspicions of irregularities at Wirecard — but also the problems with the oversight regime — were ignored in his ministry for so long.”

(Updates with details from finance committee meeting)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

Continue Reading

Previous: German finance minister points to regulatory failures in Wirecard scandal
Next: Troll Token? Why DeFi Yield Farmers Are Now All About YFI

Related News

Phase One Trade Deal: What It Means for the Global Market
  • Business & Finance

Phase One Trade Deal: What It Means for the Global Market

Amanda T. Noriega 20/05/2025 3:53 AM
China-US Tariff Deal Explained: Winners, Losers, and What’s Next
  • Business & Finance

China-US Tariff Deal Explained: Winners, Losers, and What’s Next

Amanda T. Noriega 17/05/2025 3:52 AM
Financial Literacy Made Simple: What You Need to Know
  • Business & Finance

Financial Literacy Made Simple: What You Need to Know

Amanda T. Noriega 10/05/2025 4:20 AM
June 2025
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30  
« May    

Archives

  • June 2025
  • May 2025
  • April 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • July 2020
  • March 2020
  • November 2018

Categories

  • Advertising & Marketing
  • Business & Finance
  • Business Ideas
  • Finance & Accounting
  • Finance & Oportunity
  • general
  • News Business

Recent Posts

  • How GC Coupons Is Propelling Smart Discounts for Users with CAFU and Samsung Codes
  • Phase One Trade Deal: What It Means for the Global Market
  • China-US Tariff Deal Explained: Winners, Losers, and What’s Next
  • Financial Literacy Made Simple: What You Need to Know
  • 10 Budgeting Tips That Actually Work

FIverr

Fiverr Logo   

Tags

advertising business company computer concepts content coverage create digital Email engine enterprise fashion Finance financial fitness Global Growth guide health ideas information insurance leisure Market marketing money online Opportunities Opportunity Quarter results Sales search small start Technology Tips Top travel Trends video Ways website Year

You may have missed

How GC Coupons Is Propelling Smart Discounts for Users with CAFU and Samsung Codes
  • News Business

How GC Coupons Is Propelling Smart Discounts for Users with CAFU and Samsung Codes

Amanda T. Noriega 11/06/2025 6:59 AM
Phase One Trade Deal: What It Means for the Global Market
  • Business & Finance

Phase One Trade Deal: What It Means for the Global Market

Amanda T. Noriega 20/05/2025 3:53 AM
China-US Tariff Deal Explained: Winners, Losers, and What’s Next
  • Business & Finance

China-US Tariff Deal Explained: Winners, Losers, and What’s Next

Amanda T. Noriega 17/05/2025 3:52 AM
Financial Literacy Made Simple: What You Need to Know
  • Business & Finance

Financial Literacy Made Simple: What You Need to Know

Amanda T. Noriega 10/05/2025 4:20 AM
lebensversicherungkaufenprivat.info | MoreNews by AF themes.

WhatsApp us