April 24, 2019 / 4:20 PM / 9 months ago

Wirecard says all subsidiaries are audited, denying FT report

FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany September 6, 2018. REUTERS/Michael Dalder

FRANKFURT (Reuters) - German digital payments company Wirecard on Wednesday said all its subsidiaries were subject to regular audits, denying a Financial Times report.

The FT cited whistleblowers as saying that the accounts of Wirecard’s largest business, Card Systems Middle East in Dubai, were not audited in 2016 and 2017.

“All subsidiaries of Wirecard, including Card Systems Middle East, are subject to regular audit procedures, including but not limited to quarterly and annual audits,” the company said.

The FT added that almost all of Wirecard’s reported profits had come from three partner companies in recent years and that much of the profits from these entities had been booked through Card Systems, citing documents it obtained.

Wirecard said that the FT story included “many false and misleading statements.” The company’s stock closed 8.5 percent higher, paring earlier gains of as much as 15.5 percent. Japan’s Softbank Group Corp earlier on Wednesday said it would invest around 900 million euros ($1 billion) in Wirecard, giving it the option to acquire a 5.6 percent stake.

Reporting by Ludwig Burger; Editing by David Goodman and Jane Merriman

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