German finance minister says he bears no blame in Wirecard scandal

Berlin (dpa) – German Finance Minister Olaf Scholz on Thursday rejected any political responsibility for last year’s collapse of payment group Wirecard, which shook the business world and threatens to overshadow September’s national election.

“The responsibility for this large-scale fraud does not lie with the German government,” Scholz told a parliamentary committee investigating Wirecard’s downfall after it admitted in June that 1.9 billion euros (2.3 billion dollars) in assets likely did not exist.

This in turn prompted a plunge in the company’s shares and the arrest of former executives, leading to doubts about the effectiveness of financial oversight authorities in Europe’s biggest economy.

Scholz, who is also vice chancellor, is set to head up the election campaign for the centre-left Social Democrats, the junior members of Chancellor Angela Merkel’s conservative-led coalition.

Highlighting the political fallout from the scandal, Merkel is also to appear before the committee on Friday to be quizzed about the affair.

Economy Minister Peter Altmaier appeared earlier this week, telling committee members he is drafting stricter compliance rules for the auditor oversight body, Apas.

However, Scholz’s Finance Ministry has the responsibility for financial regulator Bafin, which has come under fire for not sounding the alarm.

“There obviously was a high amount of criminal energy operating in the company,” Scholz told committee members

He said the “fraud” had not been uncovered for more than 11 years because the auditing company responsible had not detected any irregularities, he said.

Asked by a committee member whether he bore any personal responsible for the fact that the scandal had not come to light sooner, Scholz replied: “No.”

In March, Scholz announced the appointment of a new Bafin chief, Mark Branson, who has been charged with overseeing the regulator’s reform.