Siemens 2008 Annual Report Download - page 276

180 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
 As previously reported, Milan, Italy and Darmstadt, Germany prosecutors investigated allegations that former
Siemens employees provided improper benets to former employees of Enel in connection with Enel con-
tracts. In Italy, legal proceedings against two former employees ended when the “patteggiamento” (plea bar-
gaining procedure without the admission of guilt or responsibility) by the charged employees and Siemens AG
entered into force in November 2006. Prosecutors in Darmstadt brought charges against two other former
employees not covered by the “patteggiamento”. In May 2007, the Regional Court of Darmstadt sentenced one
former employee to two years in prison, suspended on probation, on counts of commercial bribery and
embezzlement. Another former employee was sentenced to nine months in prison, suspended on probation,
on counts of aiding and abetting commercial bribery. In connection with these sentences, Siemens AG was
ordered to disgorge €38 of prots. In August 2008, the German Federal Supreme Court (Bundesgerichtshof)
reversed the convictions of the former employees on counts of commercial bribery and aiding and abetting
commercial bribery. As a consequence, the Federal Supreme Court also reversed the disgorgement order of
€38 of prots by Siemens AG. Accordingly, Siemens released a corresponding provision of €38 during the
fourth quarter of scal 2008.
 The public prosecutor in Milan, Italy is investigating allegations as to whether two employees of Siemens
S.p.A. made illegal payments to employees of the state-owned gas and power group ENI. In November 2007,
the public prosecutor led charges against the two employees, Siemens S.p.A. and one of its subsidiaries,
as well as against other individuals and companies not afliated with Siemens.
 The public prosecutor in Wuppertal, Germany is conducting an investigation against Siemens employees
regarding allegations that they participated in bribery related to the awarding of an EU contract for the refur-
bishment of a power plant in Serbia in 2002.
 The Norwegian government is investigating payments made by Siemens for golf trips in 2003 and 2004,
which were attended by members of the Norwegian Department of Defense, and allegations of bribery and
over charging of the Norwegian Department of Defense related to the awarding of a contract for the delivery
of communication equipment in 2001.
 The public prosecutor in Athens, Greece concluded his preliminary investigation relating to allegations of
active and passive bribery of public ofcials, money laundering and aiding and abetting the foregoing, in
connection with, among others, a telecom contract relating to the 2004 Olympic Games awarded by the Greek
government to Siemens and purchases of telecom equipment by the Hellenic Telecommunications Organiza-
tion SA (OTE) in the late 1990s. In July 2008, the prosecutor named several suspects, including several former
Siemens employees, and transferred the case to an investigative Magistrate’s Court in Athens, which can issue
criminal charges against specic individuals. Separately, preliminary investigations continue into allegations
of bribery by Siemens of the Greek national railways and of the Greek Ministry of Defense and the Military.
The Greek Ministry of Finance has also announced tax probes into the local operations of Siemens.
 Siemens Zrt. Hungary and certain of its employees are being investigated by Hungarian authorities in connec-
tion with allegations concerning suspicious payments in connection with consulting agreements with a vari-
ety of shell corporations and bribery relating to the awarding of a contract for the delivery of communication
equipment to the Hungarian Armed Forces.
 The Vienna, Austria public prosecutor is conducting an investigation into payments between 1999 and 2006
relating to Siemens AG Austria and its subsidiary VAI for which valid consideration could not be identied.
 Authorities in Russia are conducting an investigation into alleged embezzlement of public funds in connec-
tion with the award of contracts to Siemens for the delivery of medical equipment to public authorities in
Yekaterinburg in the years 2003 to 2005.
 In October 2008, U.S. authorities conducted a search at the premises of Siemens Building Technologies Inc.
in Cleveland, Ohio in connection with a previously ongoing investigation into activities with Cuyahoga County
government agencies.