Court fines Siemens over questionable payments

5th October 2007, Comments 0 comments

5 October 2007, Munich (dpa) - A Munich court slapped a 201-million-euro (283- million-dollar) fine on Siemens in a corruption scandal that has rocked the German electrical and engineering giant, a company statement said Thursday. Siemens said the penalty wrapped up investigations by prosecutors into questionable payments by the group's former telecoms subsidiary Com. "Siemens accepts the court sanctions and takes responsibility for past irregular activities on the part of Com," the statement said. In addi

5 October 2007

Munich (dpa) - A Munich court slapped a 201-million-euro (283- million-dollar) fine on Siemens in a corruption scandal that has rocked the German electrical and engineering giant, a company statement said Thursday.

Siemens said the penalty wrapped up investigations by prosecutors into questionable payments by the group's former telecoms subsidiary Com.

"Siemens accepts the court sanctions and takes responsibility for past irregular activities on the part of Com," the statement said.

In addition to the fine, Siemens was ordered to pay 179 million euros in taxes because 450 million euros in payments made by Com were retroactively declared to be non tax-deductible.

The case relates to slush funds that Siemens managers set up to pay bribes in a bid to win foreign contracts.

The questionable payments involve other branches as well as Com.

Siemens is investigating up to 420 million euros' worth of suspect payments that were booked as consultancy fees over a seven-year period.

An internal probe revealed earlier this month that the figure could be much higher.

German police raided Siemens offices in November 2006 and made a number of arrests when the scandal first surfaced.

DPA

Subject: German news

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