Philippines launches investigation into Wirecard's phantom billions

[MUNICH] Wirecard's US$2.1 billion accounting scandal is being investigated by the Philippines, which said that the German payments firm's former chief operating officer Jan Marsalek may be in the country.

Philippine Justice Secretary Menardo Guevarra said on Wednesday that he had instructed state investigators to coordinate with the central bank's anti-money laundering council in investigating Wirecard.

Mr Marsalek was fired by Wirecard on Monday after it disclosed that the billions, purportedly held at two Philippine banks which have denied any connection with the German firm, probably did not exist.

"There are some indications that he may have returned recently and may still be here," Mr Guevarra said in a text message to reporters, adding that immigration records showed the 40-year-old Austrian had been in the Philippines from March 3-5.

The Munich prosecutor's office intends to seek Mr Marsalek's arrest, German business daily newspaper Handelsblatt reported. Germany has no extradition treaty with the Philippines.

The Munich prosecutor's office declined to comment, as did the court that would need to approve any arrest warrant. Mr Marsalek's lawyer could not be reached for comment.

Former chief executive Markus Braun, who was arrested in Munich on Monday on suspicion of misrepresenting Wirecard's accounts and of market manipulation, was released on Tuesday after posting bail of 5 million euros (S$7.84 million).

Although a warrant against Mr Braun - another Austrian - has been lifted he remains under investigation.

During Mr Braun's 18 years as CEO, Wirecard grew into a US$28 billion 'fintech' firm that won a spot in 2018 in Germany's DAX blue-chip index. It fell from grace last Thursday when auditor EY refused to sign its 2019 accounts.

REUTERS