Siemens 2009 Annual Report Download - page 269

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 Managing Board statements, Independent auditors’ report, Additional information
 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise
stated and per share amounts)
the premises of Siemens Argentina and Siemens IT Services
S.A. in Buenos Aires in August 2008 and in February 2009. The
Company is cooperating with the Argentinean Authorities.
The Argentinean investigative judge also requested repeatedly
judicial assistance from the Munich prosecutor and the federal
court in New York.
On August 17, 2009, the Anti-Corruption Commission of Ban-
gladesh filed criminal charges against two current and one
former employee of Siemens Bangladesh’s Healthcare busi-
ness. It is alleged that the employees colluded with employees
of a public hospital to overcharge for the delivery of medical
equipment in the period before 2007.
The Company remains subject to corruption-related investiga-
tions in several jurisdictions around the world. As a result, ad-
ditional criminal or civil sanctions could be brought against
the Company itself or against certain of its employees in con-
nection with possible violations of law. In addition, the scope
of pending investigations may be expanded and new investi-
gations commenced in connection with allegations of bribery
and other illegal acts. The Company ’s operating activities, fi-
nancial results and reputation may also be negatively affected,
particularly due to imposed penalties, fines, disgorgements,
compensatory damages, third-party litigation, including by
competitors, the formal or informal exclusion from public ten-
ders or the loss of business licenses or permits. Additional ex-
penses and provisions, which could be material, may need to
be recorded in the future for penalties, fines, damages or other
charges in connection with the investigations.
As previously reported, the Company investigates evidence of
bank accounts at various locations, as well as the amount of
the funds. Certain funds have been frozen by authorities. Dur-
ing fiscal 2009, the Company recorded an amount of €23 in
Other operating income from the recovery of funds from cer-
tain such accounts.
In November 2009, a subsidiary of Siemens AG voluntarily self-
reported possible violations of South African anticorruption
regulations in the period before 2007 to the responsible South
African authorities.
more than 15 years. In fiscal 2009, the Company took a charge
to Other operating expense to accrue a provision in the
amount of €53.
Siemens Russia OOO will, in a separate proceeding before the
World Bank Group, face a debarment of up to four years from
participating in Bank Group Projects which it will not contest.
As previously reported, the Norwegian anti-corruption unit,
Oekokrim, conducted an investigation against Siemens AS
Norway and two of its former employees related to payments
made for golf trips in 2003 and 2004, which were attended by
members of the Norwegian Department of Defense. On July 3,
2009, the trial court in Oslo, Norway, found the two former
employees not guilty. Oekokrim stated on July 16, 2009, that
the proceedings against Siemens AS Norway have also been
discontinued.
As previously reported, the public prosecutor in Milan, Italy,
had filed charges against a current and a former employee of
Siemens S.p.A., Siemens S.p.A., and one of its subsidiaries in
November 2007, alleging that the two individuals made illegal
payments to employees of the state-owned gas and power
group ENI. Charges were also filed against other individuals
and companies not affiliated with Siemens. The two individu-
als, Siemens S.p.A., and its subsidiary entered into a “patteg-
giamento” (plea bargaining agreement without the recogni-
tion of any guilt or responsibility) with the Milan prosecutor
which was confirmed by the Milan court on April 27, 2009. Un-
der the terms of the patteggiamento, Siemens S.p.A. and the
subsidiary were each fined €40.0 thousand and ordered to dis-
gorge profits in the amount of €315.562 thousand and €502.370
thousand, respectively. The individuals accepted suspended
prison sentences. Once the decision becomes final and non-
appealable, the proceedings will be effectively over.
As previously reported the Argentinean Anti-Corruption Au-
thority is conducting an investigation into corruption of gov-
ernment officials in connection with the award of a contract to
Siemens in 1998 for the development and operation of a sys-
tem for the production of identity cards, border control, collec-
tion of data and voters’ registers. Searches were executed at