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Alba Iulia
Friday, August 14, 2020

Federal government wants to terminate contract with “balance sheet police”

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Die Federal government draws a first consequence from the scandal surrounding the former Dax group Wirecard. According to “Bild am Sonntag”, the Federal Ministry of Justice and the Federal Ministry of Finance will terminate the contract between the Federal Republic and the German Audit Office (DPR) next Monday. This association, which is organized under private law, controls the balance sheets on behalf of the state and, according to the ministries, has failed in the case of Wirecard.

In February 2019, the Federal Financial Supervisory Authority (Bafin) informed the DPR that there were inconsistencies in the 2018 half-year balance sheet Wirecard give. The DPR is said not to have investigated the suspicion of manipulation. It was only in May this year that Bafin asked the DPR again. This announced an interim report for July.

The termination of the DPR contract does not quickly remedy the obvious control gaps. The remaining term of the contract is 18 months. During this time, the ministries have to set up a new control structure.

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