Germany’s Merkel rejects criticism of her Wirecard lobbying in China

By Christian Kraemer and John O’Donnell

FRANKFURT (Reuters) -German chancellor Angela Merkel rejected criticism of her lobbying for Wirecard in China months earlier than it collapsed, telling lawmakers she had no purpose to suspect the agency of criminality as she sought to assist it do enterprise there.

Her detailed account of occasions resulting in a state go to to China in September 2019 shone a uncommon gentle on the inside workings of presidency and its lobbying for enterprise, marking the climax of a public inquiry into the nation’s greatest post-war fraud.

Wirecard, which started by processing funds for playing and pornography, had been hailed as a uncommon German know-how success story, though few actually understood it. As soon as valued at $28 billion, it abruptly unravelled final 12 months.

In her testimony, Merkel outlined how Wirecard’s purpose of shopping for a Chinese language firm fitted in together with her agenda of serving to German corporations on the journey, lobbying she described as a standard a part of her job.

“What is understood since Summer time 2020 … about Wirecard was not identified in 2018/2019,” stated Merkel, including: “There was no purpose to suppose that there have been severe irregularities, regardless of press reviews.”

Merkel gave a obscure account of her assembly, shortly earlier than her journey to China, with Karl-Theodor zu Guttenberg, a former German financial system minister who lobbied on behalf of Wirecard, saying she didn’t keep in mind if he introduced up the corporate.

Highlighting the truth that EY, Wirecard’s auditor, had signed off on the corporate’s accounts and emphasising that she had no purpose to doubt the data she had been given by the Finance Ministry, Merkel emphasised her ignorance on the time.


“There isn’t any 100% safety in opposition to legal behaviour,” she stated.

Merkel is the newest politician to scrub her fingers of the scandal, after Olaf Scholz, her deputy, blamed Wirecard’s auditor, EY, for failing to catch the fraud. EY has stated it acted professionally.

A number of different officers have rejected accountability, saying they shouldn’t be blamed for the mishaps that led German authorities to pursue the corporate’s critics for years slightly than study Wirecard itself.

A lot proof uncovered by the inquiry suggests German officers acted in ignorance, though lawmakers imagine Wirecard’s use of former politicians and intelligence officers for lobbying helped protect it from critics.

Germany’s fragmented patchwork of regional authorities, all with a job to play in holding Wirecard to account, meant that the corporate was largely given free rein.

Lawmakers say that the German authorities was biased in favour of the corporate, turning a blind eye to allegations of irregularities within the run as much as its collapse.

“The Chancellor lobbied for Wirecard with probably the most highly effective man in China,” stated Fabio De Masi, one of many lawmakers main the general public inquiry, asking why she gave it such precedence.


In energy since 2005, Merkel stays widespread, though her legacy, akin to her 2015 resolution to open Germany’s borders to refugees fleeing warfare within the Center East, divided opinion.

The Wirecard debacle tarnished her authorities’s repute by shining a highlight on the lengths some German politicians have gone to so as to assist corporations.

Stephan Klaus Ohme of Transparency Worldwide stated it had uncovered cracks in Germany’s laissez-faire mannequin in the direction of business, leaving corporations largely to their very own units.

“In Germany, you need to keep on with the foundations however in case you do not, nothing occurs. The penalties are laughable,” he added.

($1 = 0.8329 euros)

(Extra reporting by Paul Carrel and Tom Sims; Writing by John O’Donnell; Modifying by Alexander Smith and Elaine Hardcastle)


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