FRANKFURT AM MAIN: The chief executive of scandal-hit Wirecard resigned on Friday after the German payments provider was hit with fresh fraud allegations that have left it struggling to survive.
“In mutual consent with the Supervisory Board of Wirecard AG, Dr. Markus Braun resigned today with immediate effect,” Wirecard said in a statement.
Auditors on Thursday said $2.1 billion were missing from Wirecard’s accounts, sending its share price plummeting by over 80 percent since Wednesday.
Braun will be replaced on an interim basis by James Freis, the firm added.
Wirecard’s auditor EY has refused to sign off its 2019 accounts over the missing money, which sent shares in the German financial technology firm spinning on Thursday.
“It cannot be ruled out that Wirecard AG has become the aggrieved party in a case of fraud of considerable proportions,” Wirecard Chief Executive Markus Braun said in an online video.
Braun did not identify those he suspected of fraud, while BPI and BDO, the two Philippine banks, both issued statements denying any relationship with Wirecard.
“Wirecard is not a client of the bank. The document claiming the existence of a Wirecard account with BDO is a falsified document and carries forged signatures of bank officers,” BDO said.
“The matter has already been reported to the Bangko Sentral ng Pilipinas,” BDO added in a statement, referring to the Philippines’ central bank.
Wirecard said its in-house auditor EY was unable to confirm the existence of €1.9 billion in cash balances on trust accounts, representing about a quarter of its balance sheet.
“Wirecard is not a client. Their external auditor presented to us a document that claimed that they are a client. We have determined that the document is spurious. We continue to investigate this matter,” BPI said in a statement.
EY had regularly approved Wirecard’s accounts in recent years, and its refusal to sign off for 2019 confirms failings found in an external probe by KPMG in April.
Wirecard was a welcome technology success story in Germany, which made its name in heavy industry. But its fortunes unraveled after a whistleblower alleged that it owed its success in part to a web of sham transactions.
The company dismissed the claims but its failure to win a clean bill of health this week from auditors for its accounts shattered investor confidence.
CEO of scandal-hit German payments provider Wirecard resigns
https://arab.news/jxtxe
CEO of scandal-hit German payments provider Wirecard resigns
- Auditors say $2.1 billion missing from Wirecard’s accounts
OPEC+ approves gradual output increase from April amid market uncertainty
RIYADH: Eight OPEC+ producers agreed to raise oil output gradually from April, citing healthy market fundamentals and a stable global economic outlook, after ministers met virtually to assess market conditions and determine future supply policy.
Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman approved a production increase of 206,000 barrels per day for April, according to a statement.
The increase marks the start of a gradual unwinding of 1.65 million barrels per day in voluntary reductions introduced in April 2023 to shore up prices.
The move comes as the US-Israeli conflict with OPEC+ member Iran and Tehran’s retaliation have disrupted shipments in the Middle East. Oil, gas and other cargoes moving through the Strait of Hormuz have faced interruptions since Feb. 28 after shipowners received warnings from Iran that the area was closed to navigation, Reuters reported.
In a statement released after the talks, the eight nations cited a “steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories,” as the rationale for the measured production increase.
The statement stressed that the full 1.65 million bpd “may be returned in part or in full subject to evolving market conditions and in a gradual manner.”
They also stressed they retain flexibility to increase, pause or reverse the supply hike if needed. That includes the option of reinstating cuts announced in November 2023, when several members pledged additional voluntary reductions totaling 2.2 million barrels per day.
The producers reiterated their commitment to the broader Declaration of Cooperation and said compliance with output targets, including voluntary adjustments, will continue to be monitored by the Joint Ministerial Monitoring Committee.
The group also reaffirmed plans to compensate for any overproduction recorded since January 2024, saying the phased increase would allow participating countries to accelerate those efforts.
Brent crude futures jumped on Feb. 27 to $73 per barrel, the highest level since July, amid fears of a wider Middle East conflict and potential supply disruptions through Hormuz, which accounts for more than 20 percent of global oil transit, Reuters reported.
Oil prices are expected to rise, with Barclays lifting its Brent crude forecast to around $100 a barrel from $80 a day earlier, while analysts said prices could jump by as much as $20 per barrel when trading resumes on March 2 if tensions escalate further.
The eight countries will continue holding monthly reviews of market conditions, conformity and compensation levels, with the next meeting scheduled for April 5.
