When difficult questions are asked, Wirecard’s story has always changed. Now that Wirecard has filed for insolvency, the truth will finally be revealed.
For over a year we have published research showing management misleading investors about MCA lending, Wirecard’s relationship with Senjo and Al Alam, and their highly suspect China acquisition.
Our previous letters to the supervisory board drove Wirecard to bring in KPMG for the special audit. The results of the audit, together with our recent insight on EY’s cash accounting treatment drove EY to take a closer look at the trustee cash balance, which was found to be counterfeit.
Wirecard first announced the MCA product in November 2018 as mainly Brazil, and at the time the size and growth of MCA in Brazil didn’t make sense to us given our understanding of the size of Wirecard Brazil. We subsequently found the financials that showed no MCA lending in Brazil or Turkey, but some concerning transactions in Singapore. We have also posed questions for management at the recent innovation day, all of which remain unanswered. We have also published our previous letters to Wirecard’s Supervisory Board, highlighting our concerns.
If you'd like to review this initial work:
|Wirecard Brazil (€M)||Our|
|Company Reported MCA||400||400|
|Brazil % Estimate||40%|
|Brazil MCA Estimate||160||160|
|Monthly Credit Volume||37.2||37.2|
|Calculated MCA Balance||18.6||18.6|