Markus Braun, the CEO of Wirecard, has bowed out during an intensifying accounting scandal. The scandal has plummeted the payments firm’s share price.
On Friday, Wirecard published a short statement, revealing Braun’s resignation. James Freis is supposed to be the interim CEO.
A day before Braun’s resignation, Wirecard had revealed that a sum of € 1.9 billion was absent from the balance sheets. As a result, the firm’s annual report of 2019 was postponed. Making this the fourth instance.
If the company fails to present consolidated financials, it might need loans up to 2 billion to be called in. There have also been rumors and fears regarding the company going insolvent.
The recent revelations have caused the share prices of the German firm to plummet. On Thursday there was a 60% fall in the shares, while on Friday it was as high as 45%.
After the resignation of Braun, there was a slight improvement in the share prices. However, they are still 34% lower than the expected numbers.
A thorough investigation into the accounting practices of Wirecard was led by Financial Times. The newspaper has come up with a list of allegations including the use of backdated and forged contracts for revenue inflation. According to their investigation, even the staff conspired to inflate profits and sales.
All the allegations by Financial Times have been denied by the company. They even sued FT for colluding with market participants.