"Normal procedure" at Wirecard: government defends contact with lobbyists

In addition to Ex-Defense Minister zu Guttenberg, Fritsche, the Federal Intelligence Officer, also campaigned for the now insolvent financial service provider Wirecard in the Chancellery. The Federal Government describes the meetings as "part of the democratic decision-making process".

The Federal Government has defended the behavior of Chancellor Angela Merkel and the Chancellery in connection with the now insolvent payment processor Wirecard and has promised "comprehensive information". It is a "completely normal procedure" that Merkel spoke about Wirecard during a trip to China in September 2019, said deputy government spokeswoman Ulrike Demmer. At that time, the Chancellor had no knowledge of potentially serious irregularities at Wirecard.

Wirecard 1.80

"The Chancellor was informed of the accounting scandal at the end of June," said Demmer. The company filed for bankruptcy on June 25. When asked about the allegations against Wirecard, which had been going on for a long time, that the balance sheets should be styled, she said there had certainly been reports of suspicions and irregularities. "They occur not only in one company, but sometimes in other companies too," added Demmer. "There can be no reason to suspect an argument, in general."

The spokeswoman confirmed that the former secret service coordinator Klaus-Dieter Fritsche also promoted Wirecard in the Chancellery. On August 13, 2019, Fritsche asked "in his function as a consultant for the company" for an appointment for Wirecard. The interview then took place on September 11th. During the appointment at the Chancellery, Fritsche spoke to the Chancellor's economic advisor, Lars-Hendrik Röller. The former CFO of Wirecard and another employee were also there.

Demmer described the meeting as "part of the democratic decision-making process with stakeholders". Röller requested information from the Ministry of Finance to prepare for the interview. This included references to government replies to three small inquiries from members of the Bundestag, links to information from the financial regulator Bafin and current press reports on Wirecard.

Zu Guttenberg also supported Wirecard

It had already become known last week that the former Federal Minister of Defense Karl-Theodor zu Guttenberg had also promoted Wirecard in the government headquarters. The Chancellor's Office campaigned for the Dax Group's market entry there during Merkel's trip to China in early September 2019.

If the current level of knowledge of the balance sheet fraud had been known, Röller Merkel should have warned, the spokeswoman admitted. "As of today, if we had known what we know today about a balance sheet scandal that led to the bankruptcy of a Dax company, it would be so," said Demmer. "But the stand at that time was different." This explains "the completely normal procedure in this case".

The Chancellery was advised of irregularities on the working level on August 23, 2019, said a finance ministry spokesman Dennis Kolberg. At this point one has to distinguish "two levels". "It was about clues that were investigated and information was given about this status," said the ministry spokesman. "What is known today was not the state of knowledge at that time."

The question of whether it was problematic when former high-ranking government employees acted as "door openers" for companies in the chancellery left Demmer unanswered. "Basically, talking to stakeholders is a legitimate part of democratic decision-making," she said. The government maintains contacts with a "multitude of actors". However, the "process of forming the will" remains independent. Demmer also emphasized that the information situation when dealing with Wirecard at that time was different from that of today. "The federal government has always made a decision based on the facts," she said.

Linke wants committee of inquiry

The opposition, meanwhile, was harshly criticized. "The Wirecard scandal is increasingly ominous, sometimes even surreal," said Green Finance spokesman Danyal Bayaz. The Chancellery, ministries, authorities, former ministers, high-ranking advisors to the Chancellery and a secret service coordinator were involved. "The Federal Government has an obligation to resolve this case as quickly as possible so that no question remains unanswered." Representatives of the Chancellery would also have to appear at the special meeting of the Bundestag finance committee next Wednesday.

"The Wirecard affair is becoming more and more opaque," said Fabio De Masi, left-wing group vice-president. If Fritsche had contacted the Chancellor's Office before the Chancellor's China trip and the Ministry of Finance had provided information, it was "questionable that the Chancellor's working level should not have informed the Chancellor about Wirecard". It was regrettable that the grand coalition had rejected the request that at least the head of the chancellery appear in the special meeting of the finance committee. "This confirms my view that we need to enforce an investigation committee," said De Masi.

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