Wirecard shares plunge on allegations of accounting misleads at Singapore unit. The stock of the German payments firm has dropped by more than a third in less than two weeks.
In January, Wirecard was alleged of accounting scandal at its Singapore office. Back in May, Singapore law firm listed claims of money laundering, forgery at Wirecard’s Asian unit, and potential financial irregularities in the 31-page initial investigation. However, the allegation hasn’t been yet proven true.
Wirecard’s struggle started after a Jan. 30 reports which revealed that the company’s senior executive used forged and backdated contracts to boost revenue.
The report notes that Edo Kurniawan, who works on Wirecard’s Asia-Pacific accounting and finance operations, ordered illigal transactions.
A document cited in the report displays fraudent transactions happened in and out of Wirecard’s branch and outside businesses. But Wirecard says the allegation reported in the document are possibly meant to hurt the company.
After Rajah & Tann’s initial investigation, Wirecard hired an external law firm to conduct further investigation.
The lawyers wrote, “To date, we have not seen a single e-mail from any of the counter-parties which, given the nature and size of the deals, raises doubt as to the authenticity of the same.”
“There are strong reasons to believe that both the agreements and invoices may be fictitious.
Wirecard chief executive officer Markus Braun said that he saw the original report last week and the final report will be available soon. He also said that he is confident the company clear the scandal.