Philippine authorities search for Wirecard’s number two in fraud probe
Philippine authorities are searching for Wirecard’s former
number two executive Jan Marsalek as part of a broader probe into the payments
group, which is battling to survive after acknowledging €1.9bn was missing in a
potential fraud.
Menardo Guevarra, the Philippine secretary of justice, told
the Financial Times on Wednesday: “I have ordered our National Bureau of
Investigation to investigate certain persons here who are allegedly involved in
the Wirecard fraud. We are also trying to find out if the Wirecard COO, Jan
Marsalek, is in the Philippines. If he is found here, we shall include him in
the investigation.”
Mr Marsalek, who was fired as chief operating officer on
Monday, may have travelled to the Philippines, a Süddeutsche Zeitung report
said on Tuesday evening, citing his “friends”.
Those sources told the German newspaper that Mr Marsalek was
not on the run but was trying to obtain documents that could help shed light on
the matter.
Munich prosecutors and Mr Marsalek’s lawyer on Wednesday did
not immediately respond to a request for comment.
Markus Braun, Wirecard’s former chief executive, was
arrested in Munich on Monday and prosecutors said they were investigating the
rest of the management board. Mr Braun was released on €5m bail after spending
one night in police custody.
The Philippines was the supposed location of €1.9bn of cash
that had been reported on Wirecard’s balance sheet but which it said last week
was “missing” before saying that it probably does “not exist”.
Wirecard’s auditor EY had been shown documents purporting to
show €1.9bn held at two leading Philippine banks on behalf of Wirecard by a
local trustee.
However, Benjamin Diokno, Philippine central bank governor,
denied that the money had ever entered the country and the banks — BDO Unibank
and Bank of the Philippine Islands — said the paperwork was bogus.
Meanwhile, Wirecard won a brief reprieve from creditors
after banks postponed by a few days a decision on whether to terminate €2bn in
loans. Restructuring experts at FTI Consulting hired by the creditors are
assessing if the struggling Germany payments company can be rescued, according
to people briefed on the matter.
The loans can be terminated as Wirecard last week missed a
crucial deadline for the publication of audited 2019 results. The company has
warned investors that it previously misrepresented large parts of business
activities and accounts for prior years may be inaccurate.
Moody’s last week downgraded Wirecard to junk and on Monday
withdrew its credit rating altogether. Shares in Wirecard have fallen more than
80 per cent in less than a week.
According to people familiar with the discussions, a
majority of Wirecard’s banks earlier this week agreed not to pull the plug on
the once high-flying German company immediately.
Instead, the lenders mandated FTI Consulting to conduct a
quick assessment of Wirecard’s financial situation and its odds of survival.
The result is expected by the end of this week and will be the basis for the
decision to issue a waiver for Wirecard or not.
Restructuring specialist Houlihan Lokey, which was appointed
by the Dax 30 company last week, is working on a restructuring plan that
entails the sale of assets, the closure of operations and cutting jobs. “The
result would be a radically smaller Wirecard,” a person briefed on the matter
told the FT.
The Aschheim-based company, FTI Consulting and Commerzbank,
which is co-ordinating the bank consortium, declined to comment. In previous
days, Wirecard repeatedly said it was in a “constructive dialogue” with its
banks.
Comments
Post a Comment