German lawmakers launch probe into Wirecard collapse

FRANKFURT (Reuters) – German lawmakers launched a parliamentary enquiry into the collapse of payments firm Wirecard on Tuesday, a probe that will force the government to reveal more about a failure to avert the country’s biggest post-war corporate fraud.

“We want to begin a parliamentary enquiry into the Wirecard scandal,” said Lisa Paus, of the Green party, announcing an alliance with the Left party and pro-business Free Democrats (FDP) in launching the probe.

The implosion of what was seen as a German success story once worth $28 billion(20.85 billion pounds) has embarrassed the government, which prides itself on a reputation for rectitude and reliability, amid criticism that German authorities ignored many red flags.

Wirecard is now being dismantled, after its disclosure of a 1.9 billion euro hole in its accounts earlier this year triggered its insolvency.

(Reporting By Christian Kraemer and John O’Donnell; editing by Tom Sims)