Siemens pays over €1 billion in corruption fines

25 May 2012

Siemens pays over €1 billion in corruption fines

16 December 2008 Pete Swabey

Long-running legal battle has cost German engineering group €2.5 billion so far

German engineering giant Siemens is to pay fines totalling over €1 billion to settle two long-running corruption court cases.

In the US, the company will pay €350 million to the Department of Justice in order to settle charges of bribery and false accounting, and €350 million to the Securities Exchange Commision.

In Munich, where the company’s headquarters are located, it has agreed to pay €395 million to settle a case accusing the board of failing to fulfil its supervisory obligations.

The company was accused of setting up a €1.3 billion bribe fund in order to win contracts, a charge to which Siemens’ lawyers have submitted a guilty plea.

The fines bring the total cost to Siemens of the corruption scandal to €2.5 billion. This week’s fines, although gargantuan, in fact represent something of a victory for the company’s current management. They had feared that the scandal could have cost it as much as $5 billion (€3.6 billion).

"The corruption cases in Germany and the US are now over,” said Siemens president Gerhard Cromme yesterday. “Today marks the end of an unprecedented two-year effort to resolve extremely serious matters."

Siemens is part-owner of computer manufacturer and IT services provider Fujitsu-Siemens, as well as an IT service provider in its own right. It also builds telecommunications systems for both carriers and corporate customers.

Further reading

Siemens sacked from government IT project
Department of Work and Pensions tight-lipped on reasons for contract termination

Comments

There are currently no comments on this article

People who read this also read...

Platform Computing - Category winner

Since 1992, Platform has established a reputation as an industry leader in High Performance Computing (HPC) management software, bringing the most powerful commercial HPC solutions to leading global enterprises.

BSkyB's legal victory 'will force outsourcers to be more honest'

Does the landmark ruling against the IT services supplier mean the days of overpromising in project pitches are over?

A mixed blessing for IT outsourcers

Effective IT Report 2010 – The recession intensified demand for cost-cutting measures, but the associated uncertainty curtailed long-term IT outsourcing deals. However, that may be about to change

White Papers

11 Hiring Trends for 2011

In this document, you'll get the insider info you need to give potential employers what they want and beat your competition in 2011. You'll learn about the most valuable certifications and the game-changing skills that can lead to more job security and stability.

12 Hiring Manager Secrets to Getting the IT Job You Want

Learn how you can make yourself a more attractive candidate now with PrepLogic's free 12 Hiring Manager Secrets to Getting the Job You Want.

1Z0-040 Oracle Database 10G New Features for Administrators Practice Exam

Oracle 9i administrators can certify on Oracle 10G by passing this exam. The ExamForce 1Z0-040 Oracle Database 10G New Features for Administrators practice exam provides their unique triple testing mode to instantly set a baseline of your knowledge and focus your study where you need it most.

Information Age: News, analysis & insight for IT & business leaders