Mubasher: The German payments group Wirecard announced that EUR 1.9 billion of cash was missing, nearly a quarter of its consolidated balance sheet, leading its shares to collapse by 60%.
The auditor Ernst & Young (EY) told Wirecard “that no sufficient audit evidence could be obtained so far of cash balances on trust accounts to be consolidated in the consolidated financial statements in the amount of EUR 1.9 billion,” according to a statement on Thursday.
EY said that a trustee of Wirecard bank accounts attempted “to deceive the auditor.”
If the financial statements for 2019 are not released by 19 June, then loans to Wirecard AG valued at about EUR 2 billion “can be terminated.”
“The Wirecard management board is working intensively together with the auditor towards a clarification of the situation.”