How the Biggest Fraud in German History Unravelled: The Disappearing Art of Maintenance

How the Biggest Fraud in German History Unravelled: The Disappearing Art of Maintenance

In June 2020, Wirecard, a German payment processing company, made headlines when it announced that nearly two billion euros were missing from its accounts. This shocking revelation exposed what would later be known as the biggest fraud in German history. The missing sum amounted to all the profits that Wirecard had ever reported as a public company. As the investigation unfolded, two possibilities emerged: the money had either been stolen, or it had never existed in the first place.

This scandal not only shook the financial world but also raised questions about the importance of maintenance and the consequences of neglecting it. In a similar vein, the Metropolitan Transportation Authority (MTA) in the United States faces a constant battle with maintenance. Every two to three months, over 7,000 railcars undergo inspections to catch problems before they lead to major disruptions. Yet, the art of maintenance is often undervalued and underappreciated until things start falling apart.

Maintenance, in its essence, is the act of preserving and repairing assets to ensure their optimal functioning. However, it is a concept that is often overlooked or viewed as an unnecessary expense. This perception is particularly prevalent in the world of politics, where maintenance is a tough sell. Politicians are more inclined to invest in new and shiny projects that garner attention and votes rather than allocate funds to the less glamorous task of maintenance.

The MTA serves as a prime example of the challenges faced by organizations responsible for maintenance. It is frequently criticized for its relatively high labor and maintenance costs, which lead to budget constraints and public scrutiny. However, maintenance plays a crucial role in ensuring the safety and reliability of transportation systems. Neglecting maintenance can have dire consequences, as witnessed in the Wirecard scandal, where a lack of oversight and proper maintenance led to a massive financial fraud.

Moreover, maintenance extends beyond the realm of finance and transportation. It can serve as a framework for addressing global challenges, such as climate change. Just as the MTA struggles with the political sell of maintenance, the global community faces similar challenges in addressing climate change. Climate change discourse often becomes detached from the realities of industrial life and fails to acknowledge the material and mechanical dependencies that underpin our society.

In this regard, emissions goals and GDP targets share a commonality. They are both abstract concepts that reduce action to aggregates and strip human actors of agency. To truly tackle climate change, we must embrace a maintenance mindset that acknowledges the interconnectedness of our actions and the need for ongoing care and attention to our planet.

Countries like Cuba and India provide interesting case studies in the importance of maintenance. Cuba's beautifully maintained mid-century automobiles owe their longevity to a cruel and arbitrary embargo, which forced locals to keep their cars running for decades. On the other hand, India's long-standing repair culture is a result of its position at the bottom of the global supply chain. However, rising incomes and consumption are now undermining this repair culture, leading to a throwaway mentality that disregards the value of maintenance.

As we navigate the complex challenges of the 21st century, it is crucial to recognize the significance of maintenance and incorporate it into our decision-making processes. Here are three actionable pieces of advice to consider:

1. Prioritize maintenance: Instead of solely focusing on new projects or short-term gains, allocate resources and attention to the ongoing maintenance of existing assets. This will ensure their longevity and prevent costly breakdowns or failures.

2. Shift the narrative: Change the perception of maintenance from being a burdensome expense to an investment in the longevity and sustainability of our systems. Highlight the critical role maintenance plays in ensuring safety, reliability, and resilience.

3. Embrace a maintenance mindset: Recognize the interconnectedness of our actions and the need for ongoing care and attention. Incorporate maintenance principles into decision-making processes, not just in infrastructure and systems but also in addressing global challenges like climate change.

In conclusion, the Wirecard scandal and the challenges faced by the MTA highlight the importance of maintenance in preserving the integrity of systems and organizations. Maintenance should no longer be undervalued or overlooked but rather embraced as a necessary and integral part of our lives. By prioritizing maintenance, shifting the narrative, and adopting a maintenance mindset, we can ensure the longevity, reliability, and sustainability of our infrastructure and address pressing global challenges.