Siemens Braces for a Slap from Uncle Sam
Peter Là¶scher, the new CEO of German electronics and engineering giant Siemens (SI), is desperately trying to dig his company out of the biggest bribery scandal in German corporate history. On Nov. 8, Siemens disclosed that its own internal investigation has uncovered $1.9 billion in questionable payments made to outsiders by the company from 2000 to 2006. That staggering sum deeply interests U.S. authorities in Washington who want to make an example of Siemens. How did the long arm of the U.S. law reach into the offices of Germany’s most important company? Because its shares are listed on the New York Stock Exchange (NYX) and it has extensive operations in the U.S., Siemens is subject to the provisions of the U.S. Foreign Corrupt Practices Act (FCPA). The act has given the Justice Dept. and Securities & Exchange Commission the authority to launch investigations, with which Siemens is cooperating. Munich prosecutors, who uncovered evidence that Siemens used bribes to land contracts around the globe, have already extracted $290 million in fines. But Siemens is bracing for an even nastier bite from the Americans. “The big burden could come from the SEC,” says Theo Kitz, Siemens analyst at private bank Merck Finck & Co. in Munich. Image source: economist.com. > Continue.
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