Five arrested in Siemens embezzlement probe

17th November 2006, Comments 0 comments

17 November 2006, A Siemens former board member and four other persons are under arrest in connection with a corruption probe at the German electronics engineering giant, prosecutors said Thursday.

17 November 2006

A Siemens former board member and four other persons are under arrest in connection with a corruption probe at the German electronics engineering giant, prosecutors said Thursday.

Munich (dpa) - A Siemens former board member and four other persons are under arrest in connection with a corruption probe at the German electronics engineering giant, prosecutors said Thursday.

The five are suspected of embezzling 20 million euros (25.6 million dollars), senior prosecutor Christian Schmidt-Sommerfeld said a day after police raided the Siemens headquarters in Munich and 30 other offices and homes of Siemens employees in Germany and Austria.

"An investigation is under way to determine whether the money was used to pay bribes," Schmidt-Sommerfeld said, adding that 12 persons were being questioned, among them 10 current and former employees.

"Three of those under investigation have already made detailed statements," the prosecutor said. "The Siemens AG has been cooperating with the inquiry," he added.

The company declined to comment, saying it did not wish to prejudice the ongoing investigation. It said all employees were required to adhere to the company's business conduct guidelines.

The probe revolves around the Siemens fixed line network Com, which is currently in the process of being wound up. The suspects are alleged to have transferred the embezzled funds to offshore firms via dummy companies.

More than 270 police and tax office officials were involved in Wednesday's search operation, which resulted in the seizure of a large quantity of documents, police said.

DPA

Subject: German news

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