Saturday, December 13, 2008

Siemens AG to Plead Guilty

According to the Associated Press, Siemens AG will plead guilty to settle corruption charges brought by the United States Department of Justice. The charges relate to allegations of bribery and falsification of corporate books from 2001 to 2007. According to the report, Siemens AG will pay at least $448.5 million in fines.

The Justice Department has accused Siemens of making bribes and trying to falsify its corporate books from 2001 to 2007. It has also accused some of the conglomerate's subsidiaries of bribery, including paying kickbacks to the former Iraqi government to get some of the United Nations Oil-for Food contracts.

Siemens and its subsidiaries in Bangladesh, Venezuela and Argentina have agreed to plead guilty on Monday in U.S. District Court in Washington in front of Judge Richard J. Leon.

Siemens has agreed to pay $448.5 million in fines, with the three subsidiaries paying at least $500,000 each, according to court papers.

A spokeswoman for the U.S. division of Siemens had no immediate comment late Friday. The Justice Department also refused to comment.

Siemens, which makes everything from trains to light bulbs, was first rocked by claims of corruption in 2006. Evidence began to surface in 2007 and the company has since acknowledged dubious payments to secure business worth up to $1.7 billion around the world.

No comments: