FRANKFURT / SINGAPORE (Reuters) – Wirecard said that a law firm that has not appointed any conclusion of criminal breach by any employees of the German payment company and that there are signs that the allegations stem from a dispute between employees.
FILE PHOTO: People walk past the Wirecard cabin at the computer games fair Gamescom in Cologne, August 22, 2018. REUTERS / Wolfgang Rattay
Shares in the German member of the DAX index were indicated for jump 15 percent on Monday.
The Financial Times last week published two reports of alleged errors in the Wirecord Singapore office that sent stocks 40 percent lower.
The Singapore police on Monday said they looked at reports of alleged economic irregularities. Wirecard has called these reports "inaccurate, misleading and defamatory".
On Monday, Wirecard said that in April 2018, a member of its Singapore team raised concerns about alleged actions by a financial member in Singapore.
The company then started an investigation, which found no evidence to support the allegations. "Furthermore, there were signs that the allegations could be related to personal enmity between the employees involved," the company said.
Wirecard hired the Singapore law firm Rajah & Tann for a review to be completed, but so far has not found evidence of criminal default, the electronic payment company said.
CEO Markus Braun told German daily Handelsblatt Monday: "We did not need to make any adjustments to the accounts."
Wirecard said in his statement that the allegations related to potential compliance break between 2015 and 2018 revenues of 6.9 million euros and costs of 4.1 million.
The second FT report published on Friday, which deleted $ 5.7 billion of the company's market value, said Rajah & Tann had found evidence indicating "serious crimes of counterfeiting and / or counterfeiting of accounts" on Wirecard.
Rajah & Tann were not available for immediate comment after Wirecard published his statement on Monday.
Munich-based Wirecard has been a repeated target for short-sellers – investors who are focusing on falling stock prices – who have questioned accounting methods and rapid international expansion in recent years.
These speculative attacks have caused great volatility in the Wirecard stock, even though the stock price has risen several times, with the company last year into DAX.
The Mentor's Public Prosecutor's Office on Friday said it had found no evidence of the alleged error reported by FT.
Wirecard is set to hold a conference call Monday at 1300 CET (1200 GMT / 2000 Singapore time).
Further reporting by Arno Schuetze; editing by Jason Neely