Siemens 2011 Annual Report Download - page 318

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance
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 – Legal proceedings
PUBLIC CORRUPTION PROCEEDINGS
Governmental and related proceedings
Public prosecutors and other government authorities in juris-
dictions around the world are conducting investigations of
Siemens and certain of our current and former employees re-
garding allegations of public corruption, including criminal
breaches of fiduciary duty such as embezzlement, as well as
bribery, money laundering and tax evasion, among others.
These investigations involve allegations of corruption at a
number of Siemens’ Business Units.
In , Siemens pleaded guilty in federal court in Washing-
ton, D.C., to criminal charges of knowingly circumventing and
failing to maintain adequate internal controls and failing to
comply with the books and records provisions of the U.S.
Foreign Corrupt Practices Act (FCPA). In related cases, three
Siemens foreign subsidiaries, Siemens S.A. (Argentina), Siemens
Bangladesh Ltd. and Siemens S.A. (Venezuela), pleaded guilty
to individual counts of conspiracy to violate the FCPA. At the
same time, Siemens settled a civil action against it brought by
the U.S. Securities and Exchange Commission (SEC). The
Munich public prosecutor announced the termination of legal
proceedings alleging the failure of the former Managing
Board of Siemens AG to fulfill its supervisory duties. Under
the terms of the plea and settlement agreements reached in
the United States, Siemens has engaged Dr. Theo Waigel, for-
mer German federal minister of finance, as Compliance Moni-
tor to evaluate and report, for a period of up to four years, on
the Company ’s progress in implementing and operating its
new compliance program. In connection with the settlements
and other legal proceedings in Germany, Siemens paid a total
of €. billion to authorities in the U.S. and Germany in fiscal
 and fiscal .
In May , Siemens AG voluntarily reported a case of at-
tempted public corruption in connection with a  project
in Kuwait to the U.S. Department of Justice, the SEC, and the
Munich public prosecutor. Siemens is cooperating with the
authorities in their ongoing investigations which also relate
to certain employees.
In July , the Nuremberg-Fuerth public prosecutor noti-
fied Siemens AG of an investigation against several employ-
ees in connection with payments related to the healthcare
business in the Caribbean. Siemens is cooperating with the
public prosecutor.
In July , the Munich public prosecutor notified Siemens AG
of an investigation against an employee in connection with
payments to a supplier related to the oil and gas business in
Central Asia from  to . Siemens is cooperating with
the public prosecutor.
As previously reported, the Wuppertal public prosecutor, Ger-
many, was conducting an investigation against Siemens em-
ployees regarding allegations that they participated in bribery
related to the awarding of an EU contract for the refurbish-
ment of a power plant in Serbia in . In April , the
public prosecutor discontinued the investigation.
In October , the Turkish Prime Ministry Inspection Board
notified Siemens A.Ş. Turkey of an investigation in connection
with alleged bribery in Turkey and Iraq from  to .
Siemens is cooperating with the authority.
In , the Brasilia public prosecutor, Brazil, opened proceed-
ings to assess allegations against Siemens in connection with
a  metro project.
As previously reported, authorities in Russia were conducting
an investigation into alleged misappropriation of public funds
in connection with the award of contracts to Siemens for the
delivery of medical equipment to public authorities in Yekat-
erinburg in the years  to . In July , the investiga-
tion was closed with respect to all material charges.
As previously reported, in  the São Paulo public prosecu-
tor, Brazil, started certain investigations into the use of busi-
ness consultants and suspicious payments in connection with
the former Transportation Systems Group in or after .
Siemens has learned that this investigation was not discon-
tinued in  but treated confidential.
As previously reported, in March , Siemens AG received
a decision by the Vendor Review Committee of the United
Nations Secretariat Procurement Division (UNPD) suspend-
ing Siemens AG from the UNPD vendor database for a mini-
mum period of six months. The suspension applied to con-
tracts with the UN Secretariat and stemmed from Siemens
AG’s guilty plea in December  to violations of the U.S.
Foreign Corrupt Practices Act. In December , Siemens
AG filed a request to lift the existing suspension. Effective
January , , the UNPD lifted the suspension against
Siemens AG.