Wirecard defies media storm as shareprice wobbles

Wirecard defies media storm as shareprice wobbles

Shares in payment process Wirecard have continued to gyrate in the face of continuing concerns of alleged financial misconduct in its Singapore operations.

The firm is fighting a rearguard action to quash reports of alleged wrongdoings, which first appeared in the Financial Times, labeling the stories “inaccurate, misleading and defamatory".

In an updated statement Monday, Wirecard confirms concerns raised by a whistleblower about alleged financial improprieties within the company's finance team in Singapore.

The allegations related to potential compliance breaches in the area of accounting for the period 2015-2018 totaling revenues of EUR6.9m and costs of EUR4.1m as well as an internal transfer of software intellectual property valued at EUR2.6m.

The firm appointed external auditors from Singaporean compliance law firm Rajah & Tann to investigate the allegations. While the FT claims that Rajah & Tann identified potential civil and criminal violations in Singapore, Hong Kong, India, Malaysia and Germany, Wirecard maintains that the law firm has yet to make any conclusive finding of criminal misconduct.

Wirecard's statement is backed up by Rajah & Tann, which contends that the inquiry is ongoing.

The affair has raised red flags at financial regulators in Germany and with the Singapore police force, both of whom say they are looking into the issues raised by the FT's reports.
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