The German government is investigating bribery allegations against Siemens. If true, the allegations are more bad news for the engineering company.
MUNICH (Reuters) - German prosecutors are investigating
whether engineering group Siemens AG (SIEGn.DE: Quote, Profile, Research) paid millions
of dollars in hush money to cover up bribes it used to win
business contracts, a newspaper reported.
Several suspects have made this allegation to
investigators, the Sueddeutsche Zeitung said on Wednesday
without giving a source for its information.
"We are checking whether criminally relevant facts exist,"
a spokesman for the Munich prosecutor's office said in response
to the report, declining to elaborate.
A Siemens spokesman said he could not discuss a case that
is still under investigation.
The paper said the group paid consultants sums of up to 18
million marks - the case dates from before the introduction of
the euro - and then added more money later to buy their silence
over extensive bribes. At times payments flowed as a result of
threats to go public with the information.
If true, the allegations are more bad news for Siemens,
which has acknowledged making 1.3 billion euros ($2.03 billion)
in dubious payments from 1999 to 2006. A German court has
already fined it 201 million euros in the case.
The scandal has cost Siemens 1.6 billion euros in all so
far in fines, writedowns and legal fees.
Siemens also faces drastic sanctions from the U.S.
Securities and Exchange Commission (SEC), which could go as far
as banning Siemens from bidding for U.S. contracts.
Chairman Gerhard Cromme is seeking a settlement in
discussions with the SEC.
"We are in the process of entering talks" with the U.S.
regulator, a company spokesman said.
(Reporting by Jens Hack; Editing by Paul Bolding)
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