Wirecard, a German payment processor and financial services provider, was once a rising star and darling of the fintech sector. But in 2020, the DAX-listed company went insolvent after €1.9 billion (RM8.64 billion) went missing from its account.
Consequently, former chief executive officer Markus Braun resigned before being arrested for fraud and money laundering.
How could such a large sum just disappear? How did the company pull it off, and who were those responsible? Netflix’s “Skandal! Bringing Down Wirecard” has the scoop!
Directed by James Erskine, the documentary is based on the book “Money Men: A Hot Startup, a Billion-Dollar Fraud, a Fight for the Truth” by “Financial Times” journalist Dan McCrum.
Apart from Braun, viewers are introduced to Jan Marsalek, the confident and charismatic chief operating officer once described as Braun’s mentee. Is there more to Marsalek, and were the duo in cahoots?
That is what McCrum and his team were determined to find out, through an investigation that would lead them to a shell company in a remote town in England, and a whistleblower who revealed manipulation of the company’s financial data.
Every time McCrum published an article, Wirecard’s share price would plummet. The aftermath wasn’t pleasant for the “Financial Times” team – McCrum came under fire as he was accused of share-price manipulation, while his editor, Lionel Barber, discovered his office was under electronic surveillance.
Subsequently, McCrum had to resort to working with a modified laptop to ensure it couldn’t be hacked. He even feared for his family’s safety.
But their hard work and persistence paid off: under pressure from its investors, KPMG was appointed to conduct an independent audit on Wirecard’s accounts. This prompted its existing auditors to report on the missing money – which is when the entire house of cards tumbled.
At the end of the documentary, Braun claims he is a victim, while Marsalek has disappeared and is now a fugitive.
A complex issue, a gripping watch
“Skandal!” is presented in an easy-to-understand manner, which helps viewers grasp the intricacies of the entire Wirecard drama. Credit has to be given to McCrum and Barber for knowing how to tell a story, keeping the audience hooked.
The documentary features insight by the two journalists and Braun, the latter through existing media interviews in the aftermath of the scandal. In certain scenes where footage is not available, catchy comic graphics are used, which also helps lighten the heavy subject matter.
Diverse perspectives are provided: by a former employee who began working at the company in 2005 but was kept in the dark; and by members of the German parliament to short sellers who conducted their own probe into Wirecard.
As for what was lacking? “Skandal!” would have benefited from financial experts being included in the lineup, as their input would have been valuable in answering pressing questions such as:
- What were the loopholes in the system that enabled Wirecard to get away with what they did, until they no longer did?
- What steps could be/have been taken to ensure this doesn’t happen again?
Upon Wirecard’s collapse in June 2020, investor losses exceeded some €20 billion. The entire scandal teaches a sobering lesson, pertinently for financial regulators who must do their best to ensure the interests of citizens are protected at all times.
The documentary also highlights the role played by the media in bringing shady and downright criminal acts to light, even under tremendous pressure. This thought rings true closer to home, as exemplified by how the local media played a role in exposing the Abdullah Ang saga.
Now, wouldn’t THAT make a great documentary?
‘Skandal! Bringing Down Wirecard’ is streaming on Netflix.