Germanys federal government is under great pressure to reveal the main points of conversations between deputy finance minister jrg kukies and previous wirecard chief executive markus braun, once the deceptive failure of the bavaria-based repayment processing organization ripples through countrys organization.
One discussion between your two occurred on the day of mr brauns 50th birthday on november 5 2019. mr kukies additionally talked to mr braun regarding sidelines of a public seminar they both went to final september.
In a letter to your bundestags finance committee seen by the financial times, sarah ryglewski, another of germanys six deputy finance ministers, argued the content of this conversations cannot be revealed due to privacy protection passions.
This legitimately implies the data has been classified as material that, if introduced, might be damaging for the interests associated with the federal republic of germany.
Members of parliament should be able to access a summary of the conversations in bundestags secret record workplace but cannot release the information toward general public.
This is certainly simply utterly unacceptable, fabio de masi, a lawmaker because of the leftwing die linke party, informed the ft. because of the scope and scale of the wirecard scandal and also the regulating and governmental failure in managing it, the larger general public has a fundamental to know.
Wirecard last month collapsed into insolvency after disclosing that crucial components of its businesses in asia was in fact misrepresented for many years which 1.9bn in business cash never exist. the company is sitting on 3.5bn of debt and its share price plunged 97 %, cleaning completely above 12bn in shareholder price.
Mr braun, who had been fleetingly arrested and released on a 5m bail, is regarded as a number of previous wirecard executives in the middle of a criminal investigation into fraudulence, marketplace manipulation and other crimes by criminal prosecutors in munich. wirecards former second-in-command jan marsalek is on the run.
German regulators including economic watchdog bafin being harshly criticised with their inaction over early warnings on wirecard.
The finance ministry disclosed within the page into bundestag that bafin president felix hufeld only in mid-june got individually included together with associates with wirecard president thomas eichelmann and mr brauns successor james freis.
Bafin didn't make the many warnings over problems at wirecard seriously for far too very long, danyal bayaz, a green member of parliament, informed the financial times. even in the event bafin lacked specific regulating competencies to split upon wirecard, it at least need flagged this dilemma a great deal previously before it absolutely was too late.
Asked because of the lawmakers what bafin could have done to discover the wirecard scandal earlier in the day, the finance ministry defended the regulator.
According to present knowledge, the wirecard instance at its core is a matter-of unlawful functions offering accounting fraud, forgery of bank accounts and [other] deliberate functions of deception. criminal acts can simply be uncovered by forensic and criminological examination techniques, ms ryglewski argued inside her reaction to parliament. she included that inspections and balances with regard to economic reporting would be reformed into the wake for the wirecard scandal.
Mr de masi informed the ft that these types of a reasoning came near a declaration of bankruptcy for the regulating authorities.