Wirecard says the missing $ 2.1 billion likely not to exist; withdraws results

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(Reuters) – Wirecard AG on Monday said there is a likelihood that the 1.9 billion euros ($2.13 billion), reported missing from its accounts simply don’t exist in the first place.

FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim, near Munich, Germany, on 25 April 2019. REUTERS/Michael Dalder

The scandal-hit German payments of the firm stated that it was also the complete removal of the year 2019 and the first quarter of the 2020 financial results.

“The management Board of Wirecard assesses, on the basis of the continuation of the review that there is a dominant probability that the bank balances of trust accounts in the amount of 1.9 billion EUROS do not exist,” the company said in a press release.

In addition, the company has stated that it is examining a range of possible measures to ensure the continuation of its business operations, which include cost reductions, restructuring, the sale or termination of activities of the units.

Ceo Markus Braun quit on Friday as the research firm for $ 2.1 billion dollars of lack of cash hit a dead end in the Philippines, and as it scrambled to secure a financial lifeline from its banks.

The central bank of the Philippines said Sunday that none of the $ 2.1 billion missing Wirecard seems to have entered the Philippines financial system.

On Thursday, auditor ernst & young has refused to sign the German society of 2019 accounts on the missing amount.

The auditor has not been able to confirm the existence of this money, the cash balances on the trust accounts, which represents about a quarter of Wirecard the balance sheet, the payments company, said Thursday.

Home auditor EY had regularly approved Wirecard accounts in recent years, and its refusal to sign up to 2019 confirmed the defects found in an external probe by KPMG in April.

Wirecard, which has long been a target of short sellers who have questioned its financial statements, announced on Friday that he may be the victim of the fraud of enormous proportions”.

Reporting Bhargav Acharya and Kanishka Singh in Bangalore; Editing by Anil d’silva Cushing and Christopher

Our Principles:Thomson Reuters Trust Principles.

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