Siemens scandal inquiry finds $1.3 bln in bribes
Debevoise & Plimpton, the US law firm that presently screens Siemens financial transactions, has found that the bribery scandal at the German conglomerate is far bigger than previously believed. According to a report by German newspaper Sueddeutsche Zeitung, payments of “far more than” $1.37 billion have probably been spent for bribery.
Former Siemens CEO Klaus Kleinfeld had hired Debevoise & Plimpton last November to conduct a comprehensive investigation. The auditors have made significant progress: While hitherto the sum used for bribery was estimated at an already breathtaking $572 million, Debevoise & Plimpton investigators now found that the telecommunications arm alone had spend some $1.2 billion in bribes. Besides the telecommunications unit, the power plant unit was also found to have been very generous in spending money for orders. Debevoise & Plimpton lawyers found what is presumed to be illicit earnings amounting to $340 million to $408 million.
In the energy business, investigation by public prosecutors in Germany and Italy two years ago had found that Siemens used a widely ramified network of front companies, mostly in Liechtenstein and the United Arab Emirates. In this context, a court in Darmstadt, Germany had convicted two former Siemens managers in May 2007. Some payments had been made in the 1990s yet, the paper writes, adding that some of the felonies may already be beyond prosecution. (eetasia.com)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.