What are the EY customers in India

picture alliance / SvenSimon / Frank_Hoermann

Wirecard's auditor EY comes under heavy pressure again. According to an article in the "Financial Times" (FT), EY was already warned about fraudulent transactions at Wirecard in 2016 - and not from some unknown whistleblower, but from its own employee. As the FT further reports, a senior Wirecard employee is said to have tried to bribe an EY auditor.

According to the FT, this information comes from a previously unpublished appendix to KPMG's special report. The 74-page special report was published in April and, according to reports, had already been softened under high pressure from the Wirecard management. Nevertheless, he got the ball rolling that ultimately led to the disclosure of the accounting scandal in June. Even more explosive information than in the report itself can apparently be found in the 61-page appendix to the special report that the "FT" has before us. KPMG accuses the colleagues from EY of failures, writes the newspaper.

Employee wrote a letter to EY management

As the FT quotes from the KPMG report, the unnamed EY employee is said to have written a letter to the headquarters of EY Germany in Stuttgart in May 2016. In it, he denounced, among other things, the purchase of the three payment service providers Hermes i Tickets, GI Technology and Star Global. In the seller - a company called Emerging Market Investment Fund 1A in Mauritius - senior Wirecard employees are said to have held shares and were thus involved in a conflict of interest.

These deals were considered dubious from the start because of the astronomical purchase price. As the FT now writes, the whistleblower EY said back then that the profits of Indian companies had been artificially inflated in order to drive up the purchase price. A Wirecard manager who held a managerial position at Hermes is also said to have offered a local EY auditor “personal compensation” if he audited the figures. The allegations of non-transparent transactions in deals in India can also be found in a short-seller attack by the “Southern Investigative Reporting Foundation” - but not until 2018.

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