BDO, BPI deny they hold Wirecard's missing $2.1-B cash

The country’s largest lenders BDO Unibank and Bank of the Philippine Islands (BPI) on Friday denied involvement with German payments provider Wirecard which is now in hot water over an alleged accounting scandal and a missing $2 billion cash.

“Wirecard is not a client of the bank. The document claiming the existence of a Wirecard account with BDO is a falsified document and carries forged signatures of bank officers,” the Sy-led bank said in a statement sent through text message.

BPI, in a separate statement, said Wirecard’s “external auditor presented to us a document that claimed that they are a client.”

“We have determined that the document is spurious. We continue to investigate this matter,” the Ayala-led bank said.

A Bloomberg report said Wirecard’s chief executive officer Markus Braun stepped down after the payments firm disclosed 1.9 billion or $2.1 billion in missing cash.

Wirecard, in a statement, said it was informed by its auditor Ernst and Young (EY) that it refused to clear its 2019 accounts over “spurious balance confirmations.”

It said EY has received communications from two Asian banks, which were supposed to be holding the 1.9 billion euros or $2.1 billion, that they have taken over the management of trust accounts for Wirecard since 2019.

The two banks were not identified by Wirecard.

The German firm added there were “indications that the auditors have been presented with incorrect balance confirmation for fraud purposes from a trustee or from the area of these banks.”

“It cannot be ruled out that Wirecard AG has become the aggrieved party in a case of fraud of considerable proportions,” it said.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno told reporters that the central bank was “aware of reports about the German payment company Wirecard and is already investigating the matter.

Citing a communication from BDO, Diokno said the central bank was informed by the lender that its “marketing officer fabricated a bank certificate in favor of EY Germany.”

“That officer has been terminated,” Diokno said. -NB, GMA News