The public giant KfW enters the WIRECARD scandal. After Merkel….

The public credit giant KfW ( Kreditanstalt für Wiederaufbau, i.e. Credit Institute for Reconstruction, 80% of the German state 20% of the Lander) enters the Wirecard scandal. As reported by Reuters , Frankfurt prosecutors are investigating a branch of the state credit institution for a 100 million euro line of credit to the bankrupt German payment company Wirecard WDIG.DE.

In a statement on Tuesday, prosecutors in the German financial capital said that a Frankfurt-based lender granted Wirecard the credit in 2018 and extended it in 2019 without requiring collateral to protect itself from losses.

Prosecutors did not name the bank, but KfW separately claimed that its subsidiary IPEX-Bank was under investigation.

“We confirm that the police and the prosecutor's office have investigated the premises of KfW IPEX-Bank in relation to our funding of Wirecard,” a spokesperson said.

This news follows that, spread by several sites, according to which in September 2019, Angela Merkel's chief economic advisor, Lars-Hendrik Röller, met with a delegation from the Wirecard payments group, which at the time was still considered a of Germany's most successful technology companies.

One of Mr. Röller's visitors to the chancellery in Berlin was Burkhard Ley, a strategic advisor to Wirecard and his former financial director who was later arrested for fraud.

The meeting highlighted the links between the company, known for its huge budget fraud, and the German executive powers, complete with promotion abroad during official visits. A situation so embarrassing that the Bundestag has decided to set up a commission of inquiry on the matter, to get to the bottom of the group's ties.

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This is a machine translation of a post published on Scenari Economici at the URL on Wed, 30 Sep 2020 10:47:09 +0000.