BERLIN (Reuters) – the German payments company Wirecard (WDIG.DE has KPMG was hired to perform an independent audit to address allegations by the Financial Times that the finance team had sought to inflate the reported revenue and profits, it said on Monday.
FILE PHOTO: The head office of Wirecard AG, which is an independent provider of outsourcing and white label solutions for electronic payment transactions, is shown in Aschheim near Munich, Germany, April 25, 2019 at the latest. REUTERS/Michael Dalder
The company is promoted to the DAX blue-chip index last year, has been the target of a series of investigative reports by the FT correspondent Dan McCrum, with the last one on Oct. 15, knocking more than a 20% discount off the price of its shares.
It has rejected the newspaper’s latest allegations, which have been estimated based on internal spreadsheets, and correspondence, that is Wirecard the senior finance team had sought to inflate the reported revenue and profits of the companies in Dubai and the republic of Ireland.
As the FT reports, however, have led to calls to Wirecard for the investors and corporate governance advocates, hiring of an external auditor, both to understand and to demonstrate that it complies with the governance requirements of the top-tier limited liability company.
“We have the utmost trust and confidence in the audit work performed to date and the results of their findings. We have to take on this new independent study will result in a definitive end to any further speculation,” Wulf Matthias, chairman of Wirecard AG’s supervisory board, said in a statement.
Wirecard shares increased by 3.5% in pre-market trading in Frankfurt, germany.
The audit will begin immediately, Wirecard, said, adding that KPMG will be reporting to the company’s board of directors and will have full and free access to information at all levels of the group.
Thomas Eichelmann, chairman of the audit committee the audit committee of the Wirecard, the board of directors and former chief executive officer (ceo) of Deutsche Boerse AG DB1Gn.DE), with the assistance of the audit on behalf of Wirecard.
Wirecard has long been a favorite target of short-sellers, or speculators, who are trying to take advantage of the transmission of negative information to a decline in the market price of the company.
It has been accused of FOOT-and-reporter McCrum, of colluding with short-sellers, as well as suing the newspaper. According to the Financial Times Editor, Lionel Barber, has told an investigation by an outside law firm found no evidence to support these claims.
The In-house auditor, ernst & young has signed up to Wirecard is a by 2018 the accounts, in April, after an earlier FT story on the alleged fraud and false accounting in the company’s office in Singapore.
An investigation by an external law firm, found no evidence of criminal offences committed by the corporate office, even though Singapore may have broken the local laws and customs, Wirecard, said at the time.
Separately, German prosecutors have launched an investigation into a group of people in connection with the handling of the Wirecard stock, which, on the evidence, that the financial supervisory authority Bafin.
Reporting by Douglas Busvine; Editing by Emma Thomasson and john Harvey