Germany Merkel dismisses criticism of her Wirecard lobbying in China

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FRANKFURT, April 23 (Reuters) – German Chancellor Angela Merkel has dismissed criticism of her lobbying for Wirecard in China months before its collapse, telling lawmakers she had no reason to suspect the company of criminality when she was looking to help him do business there.

His detailed account of the events leading up to a state visit to China in September 2019 shed light on the inner workings of the government and its lobbying for businesses, marking the culmination of a public inquiry into the world’s largest fraud. post-war period of the country.

Wirecard, which began by processing payments for gambling and pornography, had been hailed as a rare German technological achievement, although few really understood it. Once valued at $ 28 billion, it collapsed abruptly last year.

In her testimony, Merkel explained how Wirecard’s goal of buying a Chinese company matched her program to aid German companies on the trip, the lobbying she described as part of her job.

“What we know since the summer of 2020 (…) about Wirecard was not known in 2018/2019,” Merkel said, adding: “There was no reason to believe that there had had serious irregularities, despite the press reports. “

Merkel gave a vague account of her meeting, shortly before her trip to China, with Karl-Theodor zu Guttenberg, a former German economy minister who lobbied on behalf of Wirecard, claiming that she did not couldn’t remember if he had mentioned the business.

Highlighting the fact that EY, the auditor of Wirecard, had validated the company’s accounts and stressing that she had no reason to doubt the information given to her by the finance ministry, Merkel stressed his ignorance at the time.

“There is no 100% protection against criminal behavior,” she said.

Merkel is the latest politician to wash her hands of the scandal, after Olaf Scholz, her deputy, criticized Wirecard’s auditor, EY, for failing to detect the fraud. EY said he acted professionally.

A host of other officials have dismissed all responsibility, saying they should not be blamed for the misadventures that have led German authorities to pursue critics of the company for years rather than examine Wirecard itself.

Much evidence uncovered by the investigation suggests that German officials acted in ignorance, although lawmakers believe that Wirecard’s use of former politicians and intelligence officials for lobbying purposes helped protect him from harm. reviews.

The fragmented patchwork of German regional authorities, all of whom had a role to play in holding Wirecard to account, meant the company had plenty of leverage.

Lawmakers say the German government was biased in favor of the company, turning a blind eye to allegations of improprieties in the run-up to bankruptcy.

“The Chancellor lobbied for Wirecard with the most powerful man in China,” said Fabio De Masi, one of the lawmakers leading the public inquiry, asking why she had given him such priority.

In power since 2005, Merkel remains popular, although her legacy, such as her decision in 2015 to open Germany’s borders to refugees fleeing the war in the Middle East, has divided opinion.

The Wirecard debacle has tarnished his government’s reputation by shining the spotlight on the efforts of some German politicians to support business.

Stephan Klaus Ohme of Transparency International said he had exposed flaws in the German laissez-faire model for the industry, leaving companies largely on their own.

“In Germany you have to follow the rules but if you don’t, nothing happens. The penalties are laughable,” he added.

($ 1 = 0.8329 euros)

Additional reporting by Paul Carrel and Tom Sims; Writing by John O’Donnell; Editing by Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.

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