Siemens 2010 Annual Report Download - page 274

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
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tion of data and voters’ registers. Searches were undertaken at
the premises of Siemens Argentina and Siemens IT Services
S.A. in Buenos Aires in August  and in February . The
Company is cooperating with the Argentinean Authorities. The
Argentinean investigative judge also requested judicial assis-
tance from the Munich public prosecutor and the federal court
in New York repeatedly.
On August , , the Anti-Corruption Commission of Ban-
gladesh (ACC) filed criminal charges against two current and
one former employee of Siemens Bangladesh’s Healthcare
business. It is alleged that the employees colluded with em-
ployees of a public hospital to overcharge for the delivery of
medical equipment in the period before .
On December , , the ACC sent a request for information
to Siemens Bangladesh Ltd. (Siemens Bangladesh) related to
telecommunications projects of Siemens’ former Communica-
tions (Com) Group undertaken prior to . On January , ,
Siemens Bangladesh was informed that in a related move the
Anti Money Laundering Department of the Central Bank of Ban-
gladesh is conducting a special investigation into certain ac-
counts of Siemens Bangladesh and of former employees of
Siemens Bangladesh in connection with transactions for Com
projects undertaken in the period from  to . On Febru-
ary , , the ACC sent a request for additional information.
On June , , the Frankfurt public prosecutor searched
premises of Siemens in Germany in response to allegations of
questionable payments relating to an Industry project in Thai-
land. Siemens is cooperating with the authority.
In August , the Inter-American Development Bank (IADB)
issued a notice of administrative proceedings against, among
others, Siemens IT Solutions and Services Argentina alleging
fraudulent misstatements and antitrust violations in connec-
tion with a public invitation to tender for a project in the prov-
ince of Cordoba, Argentina, in . Siemens is cooperating
with the IADB.
Also in August , the IADB issued a notice of administrative
proceedings against, among others, Siemens Venezuela alleg-
ing fraudulent misstatements and public corruption in connec-
tion with a public invitation to tender for healthcare projects in
the Venezuelan provinces of Anzoategui and Merida in .
Siemens is cooperating with the IADB.
As previously reported, in February  a Greek Parliamentary
Investigation Committee (GPIC) was established to investigate
whether any politicians or other state officials in Greece were
involved in alleged wrong-doing of Siemens in Greece. GPIC’s
investigation is focused on possible criminal liability of politi-
cians and other state officials. Greek public prosecutors are
separately investigating certain fraud and bribery allegations
involving – among others – former board members and former
executives of Siemens A.E. Greece (Siemens A.E.) and Siemens
AG. Both investigations may have a negative impact on civil
proceedings currently pending against Siemens AG and
Siemens A.E. and may affect the future business activities of
Siemens in Greece. In September , the GPIC assumed in a
preliminary estimate that the alleged damages suffered by the
Greek state from contracts signed with Siemens might reach
up to € billion. At present, it is unclear to Siemens what the
basis of the alleged damages is or how the alleged amount of
damages was computed.
As previously reported, the Nigerian Economic and Financial
Crimes Commission (EFCC) was conducting an investigation
into alleged illegal payments by Siemens to Nigerian public
officials between  and . In October , the EFCC
filed charges with the Federal High Court in Abuja and the
High Court of the Federal Capital Territory against – among
others – Siemens Ltd. Nigeria (Siemens Nigeria), Siemens AG
and former board members of Siemens Nigeria. On November
, , the Nigerian Government and Siemens Nigeria en-
tered into an out of court settlement, obligating Siemens Nige-
ria to make a payment in the mid double-digit Euro million
range to Nigeria in exchange for the Nigerian Government
withdrawing these criminal charges and refraining from the
initiation of any criminal, civil or other actions – such as a de-
barment – against Siemens Nigeria, Siemens AG, and Siemens
employees.
The Company remains subject to corruption-related investiga-
tions in several jurisdictions around the world. As a result,
additional 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 investiga-
tions 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 as a result of penalties, fines, disgorgements, com-
pensatory damages, third-party litigation, including with
competitors, the formal or informal exclusion from public invi-
tations to tender, or the loss of business licenses or permits.
Additional expenses and provisions, which could be material,
may need to be recorded in the future for penalties, fines, dam-
ages or other charges in connection with the investigations.