Accounting watchdog axed by the German government
GERMANY’S accounting watchdog is set to be stripped of its powers in the wake of the Wirecard scandal.
The German government will end its contract with the Financial Reporting Enforcement Panel as soon as today, according to reports.
The job of overseeing company accounts will be taken on by Bafin, Germany’s financial regulator.
“We have reached an agreement with the Finance Ministry to terminate the contract,” a Justice Ministry official told the Bild am Sonntag newspaper
Germany has been rocked by the collapse of payments company Wirecard, which filed for insolvency last week after admitting that €1.9bn (£1.7bn) of cash on its balance sheet
‘What the Wirecard affair has shown is that… selfregulation by the auditors doesn’t work properly’
probably did not exist. Markus Braun, chief executive of the Dax-listed company, resigned on June 19 and was subsequently arrested on suspicion of accounting fraud and market manipulation.
Braun was released last week after posting bail of £4.5m.
German authorities are facing questions over their failure to root out the scandal. Regulators even filed a criminal complaint against Financial Times journalists as they published allegations of fraud against the fintech firm, once a stock market darling.
Authorities in the Philippines have opened an investigation into the Wirecard scandal, as the company had said the missing £1.7bn was in two Philippine banks that have denied any connection with the firm.
Jörg Kukies, Germany’s deputy finance minister, told the Financial
Times: “What the Wirecard affair has shown is that… self-regulation by the auditors doesn’t work properly.”