Siemens 2008 Annual Report Download - page 277

Notes to Consolidated Financial Statements 181
(in millions of €, except where otherwise stated and per share amounts)
 There are currently numerous public corruption-related governmental investigations in China, involving
several divisions of Siemens Ltd. China, primarily the former group Med, but also the former group Automa-
tion & Drives and Siemens IT Solutions and Services. The investigations have been initiated by prosecutors
in several regions and provinces, including Guangdong, Jilin, Xi’an, Wuxi, Shanghai, Ting Hu, Shandong,
Hunan, and Guiyang.
 The Argentinean Anti-Corruption Authority is conducting an investigation into corruption of government
ofcials in connection with the awarding to Siemens in 1998 of the contract for the development and opera-
tion of a system for the production of identity cards, border control, collection of data and voters’ registers.
A search was executed at the premises of Siemens Argentina and Siemens IT Services SA in Buenos Aires in
August 2008. The Argentinean investigative judge also requested judicial assistance from the Munich prosecu-
tor and the federal court in New York.
 In June 2008, the court of rst instance in Kalimantan Province, Indonesia, found the head of the former Med
group of Siemens PT Indonesia not guilty of the allegations that he participated in bribery, fraud, and over-
charging related to the awarding of a contract for the delivery of medical equipment to a hospital in 2003.
The decision has been appealed by the prosecutor.
As previously reported, the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission’s
(SEC) enforcement division are conducting investigations of possible criminal and civil violations, respectively,
by Siemens of the U.S. Foreign Corrupt Practices Act (FCPA), some of which relate to the matters described
above. The Company is cooperating with these investigations.
The SEC and the DOJ are also investigating possible violations of U.S. law by Siemens in connection with the Oil-
for-Food Program. The Company is cooperating with the SEC and DOJ. A French investigating magistrate com-
menced a preliminary investigation regarding the participation of French companies, including Siemens France
S.A.S., in the Oil-for-Food Program. German prosecutors also began an investigation in this matter in August
2007. Siemens is cooperating with the authorities in France and Germany.
As a result of the above described matters and as a part of its policy of cooperation, Siemens contacted the World
Bank and offered to assist the World Bank in any matter that might be of interest to the World Bank. Since that
time, Siemens has been in contact with the World Bank Department of Institutional Integrity and intends to con-
tinue its policy of cooperation. Siemens was also contacted by representatives of regional development banks,
including the Inter-American Development Bank, the Asian Development Bank, the African Development Bank,
the European Bank for Reconstruction and Development and the European Investment Bank, regarding anti-cor-
ruption inquiries and other matters of relevance to them.
In May 2008, Siemens received a decision issued by the Controller of the United Nations upon the recommenda-
tion of the Vendor Review Committee of the United Nations Secretariat Procurement Division (UNPD). According
to the decision, which is based on the Fifth and Final Report (IIC Report) of the Independent Inquiry Committee
into the United Nations Oil for Food Program, Siemens Medical Solutions was to be suspended for a minimum
period of six months, effective as of May 23, 2008, from the UNPD Vendor Roster. Siemens appealed the decision.
The review of the decision is pending.
In November 2008, Siemens AG announced that it would accrue a provision in the amount of approximately
€1 billion in scal year 2008 in connection with ongoing discussions with the Munich public prosecutor, the SEC
and DOJ for the purpose of resolving their respective investigations.