Oopsie!

Markus Braun’s almost two decades as Wirecard AG’s chief executive officer ended after accusations about the company’s accounting culminated in a shock disclosure that it was was unable to locate 1.9 billion euros ($2.1 billion).

….

Braun’s exit comes after a catastrophic few days for Wirecard, which suffered a share price collapse after the two Asian banks that were alleged to be holding the missing cash denied any business relationship with the company.

No relationship at all? Blimey

Wirecard claimed on Thursday that auditor Ernst & Young couldn’t confirm the location of the missing cash that was supposed to be held at two Asian banks and reported that “spurious balance confirmations” had been provided.

The confusion deepened on Friday when BDO Unibank Inc., the Philippines’ largest bank by assets, and the Bank of the Philippine Islands, said on Friday that Wirecard isn’t a client.

“It was a rogue employee who falsified documents and forged the signatures of our officers,” BDO Unibank CEO Nestor Tan said in a mobile phone message. “Wirecard is not even a depositor — we have no relationship with them”.

And guess what?

Its 900 million euros of convertible bonds are now indicated at less than 10 cents on the euro.

Softbank bought those…..

This is giggle a minute stuff.

Early last year BaFin took the unprecedented step of temporarily banning short sales of Wirecard shares following reports of suspicious accounting practices.

Snigger

17 thoughts on “Oopsie!”

  1. The CEO should have Harry Truman’s note on his desk “the buck stops here”. He approved or tolerated a subordinate who failed to monitor his/her subordinate. Failed! Out, without a golden handshake.
    Nestor Tan needs to watch his back unless this is the first time anyone has told BDO Unibank that Wirecard had accounts there.
    But how can €1.9bn have gone astray without massive collaboration throughout Wirecard’s accounts department? Did that all happen in just one year? Who did the previous audit? This is approaching Enron scale.
    All of Wirecard’s accounting department should be under house arrest until some forensic accountants have traced when and whence the money flowed out of Wirecard.

  2. What is a German financial services company doing keeping a quarter of its money in a Philippine bank? Don’t they trust Deutsche? (snark)

  3. Was the money stolen or did it never exist at all?

    “It was a rogue employee who falsified documents and forged the signatures of our officers”: employee of whom, dear heart?

    Are we being asked to believe that someone stole a couple of billion bucks and that nobody else noticed a change in his lifestyle? Very like a whale.

  4. Dearieme, it takes a long time for people to notice changes in an employee’s lifestyle. I think the last one I heard of was the director’s secretary at a Telco who added her personal holidays to his expense account and got away with it for about 10 years

  5. What always puzzles me is that these people keep on going to the well. You need to do it once and then shack up with Bloke in Spain

  6. What always puzzles me is that these people keep on going to the well. You need to do it once and then shack up with Bloke in Spain. Nick Leeson got away with it for 3 years, for USD 1.4 billion

  7. Bloke in North Dorset

    “It was a rogue employee who falsified documents and forged the signatures of our officers”: employee of whom, dear heart?

    If their processes were that weak WTF were the auditors doing?

    I was a cheque signatory for one of my employers, parent company listed in HK, and I remember our auditors going to town on process for all money movements and purchases.

  8. Bloke in North Dorset

    Diogenes,

    Looking at that last link reminded me that on the rare occasions I used black cabs in London they were always free and easy with blank receipts. It made me check expense claims for taxi rides with a bit more care.

  9. “Nick Leeson got away with it for 3 years, for USD 1.4 billion”: yeah, but he wasn’t lining his own pocket, was he? He was (correct me if I’m wrong) disguising his failed trades.

    “added her personal holidays to his expense account”: umm, but not two billion bucks worth, surely?

  10. Bloke in West London

    Having worked with them a few years back I’m not deploying my shocked face. Complete cowboys and arrogant to boot.

  11. @dearieme
    +1
    $2 billion fraud must have involved CFO/CEO complicity. It dwarfs Tesco, Pattis DV and secretary/PA fraud

    @BiND
    All cabbies will give blank receipts in exchange for tip; as will many restaurants and more. I have a folder full of them

  12. OT but now Trump is looking to remove Section 230(?) protection from Big Tech socialist scum–does any legal brain out there know what would be needed to attack Google/Twitter/Facebook/You-tube etc with lawsuits? Or know of any lawsuit getting under weigh that could be joined. The prospect of smashing these leftist garbage and hopefully taking some of their money is tempting.

  13. I’m not sure what Twitters business model is they almost seem to be dating Trump to go after them.
    Maybe they expect him to lose and be praised as hero’s of the revolution who helped remove the orange dictator

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