Siemens 2010 Annual Report Download - page 273

147 Consolidated Financial Statements
148 Consolidated Statements of Income
149 Consolidated Statements of Comprehensive Income
150 Consolidated Statements of Financial Position
151 Consolidated Statements of Cash Flow
152 Consolidated Statements of Changes in Equity
154 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated
and per share amounts)
261 Additional information

of business consultants and suspicious payments in connec-
tion with the former Transportation Systems Group in or after
. In , the authority discontinued the investigation.
On March , , Siemens AG received a decision by the Ven-
dor Review Committee of the United Nations Secretariat Pro-
curement Division (UNPD) suspending Siemens AG from the
UNPD vendor database for a minimum period of six months.
The suspension applies to contracts with the UN Secretariat
and stems from Siemens AG’s guilty plea in December  to
violations of the U.S. Foreign Corrupt Practices Act. Siemens
AG does not expect a significant impact on its business, results
of operations or financial condition from this decision. On
December , , Siemens AG filed a request to lift the exist-
ing suspension to which it has not yet received a response.
In April , Siemens AG received a “Notice of Commence-
ment of Administrative Proceedings and Recommendations of
the Evaluation and Suspension Officer” from the World Bank,
which comprises the International Bank for Reconstruction
and Development as well as the International Development
Association, in connection with allegations of sanctionable
practices during the period  –  relating to a World
Bank-financed project in Russia. On July , , the Company
entered into a global settlement agreement with the Interna-
tional Bank for Reconstruction and Development, the Interna-
tional Development Association, the International Finance
Corporation and the Multilateral Investment Guarantee Agency
(collectively, the “World Bank Group”) to resolve World Bank
Group investigations involving allegations of corruption by
Siemens. In the agreement, Siemens voluntarily undertakes to
refrain from bidding in connection with any project, program,
or other investment financed or guaranteed by the World Bank
Group (“Bank Group Projects”) for a period of two years, com-
mencing on January ,  and ending on December , .
Siemens is not prohibited by the voluntary restraint from con-
tinuing work on existing contracts under Bank Group Projects
or concluded in connection with World Bank Group corporate
procurement provided such contracts were signed by Siemens
and all other parties thereto prior to January , . The
agreement provides for exemptions to the voluntary restraint
in exceptional circumstances upon approval of the World Bank
Group. Siemens also had to withdraw all pending bids, includ-
ing proposals for consulting contracts, in connection with
Bank Group Projects and World Bank Group corporate procure-
ment where the World Bank Group has not provided its ap-
proval prior to July , . Furthermore, Siemens is also re-
quired to voluntarily disclose to the World Bank Group any
potential misconduct in connection with any Bank Group Proj-
ects. Finally, Siemens has undertaken to pay U.S. $ million
to agreed anti-corruption organizations over a period of not
more than  years. In fiscal , the Company took a charge
to Other operating expense to accrue a provision in the amount
of € relating to the global settlement agreement with the
World Bank Group. In November , Siemens Russia OOO
and all its controlled subsidiaries were, in a separate proceed-
ing before the World Bank Group, debarred for four years from
participating in Bank Group Projects. Siemens Russia OOO did
not contest the debarment.
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  and , which were attended by
members of the Norwegian Department of Defense. On July ,
, the trial court in Oslo, Norway, found the two former
employees not guilty. Oekokrim stated on July , , that
the proceedings against Siemens AS Norway have also been
discontinued.
In November  and in February , a subsidiary of
Siemens AG voluntarily self-reported possible violations of
South African anti-corruption regulations in the period before
 to the responsible South African authorities.
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 , 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 recognition
of any guilt or responsibility) with the Milan public prosecutor
which was confirmed by the Milan court on April , .
Under the terms of the patteggiamento, Siemens S.p.A. and
the subsidiary were each fined €. thousand and ordered to
disgorge profits in the amount of €. thousand and
€. thousand, respectively. The individuals accepted
suspended prison sentences. The decision is final and the
proceedings are closed.
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  for the development and operation of a sys-
tem for the production of identity cards, border control, collec-