Friday, October 5, 2007

Siemens Settles German Overseas Bribery Probe

Multinational industrial giant Siemens A.G. settled with German prosecutors the probe of corrupt overseas payments by its telecom unit by agreeing to pay €201 million.  The company will also pay an additional €179 million to the tax authorities because it improperly deducted the foreign payments as ordinary business expenses.  As discussed in an earlier post (here), the scope of the questionable overseas payments is much broader than first suspected, with Debevoise & Plimpton's internal investigation raising questions about as much as €1.6 billion in transfers throughout the company and not just the telecom unit.  While the settlement with the German prosecutors closes one avenue of problems, Siemens still faces investigations by the SEC and Department of Justice in the United States and an inquiry by the Italian authorities.  Given the size of the payments and their occurrence in different parts of the company, this is the type of case that the federal government will pursue vigorously.  A Bloomberg story (here) discusses the settlement.  (ph)

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FCPA, International, Settlement | Permalink

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