Siemens 2011 Annual Report Download - page 320

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance
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and former executives of Siemens A.E. Greece (Siemens A.E.)
and Siemens AG. Both investigations may have a negative im-
pact on civil proceedings currently pending against Siemens
AG and Siemens A.E. and may affect the future business activi-
ties of Siemens in Greece. In January , the GPIC alleged in
a letter to Siemens that the damage suffered by the Greek
state amounts to at least € billion. Furthermore, the GPIC
issued a report repeating these allegations. In addition, the
Hellenic Republic Minister of State indicated in a letter to
Siemens that the Greek state will seek compensation from
Siemens for the alleged damage. While Siemens rejects these
allegations as unfounded and continues to defend itself,
Siemens and the Greek state have engaged in discussions to
resolve the matter.
As previously reported, the Nigerian Economic and Financial
Crimes Commission (EFCC) was conducting an investigation in-
to alleged illegal payments by Siemens to Nigerian public offi-
cials 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 for-
mer board members of Siemens Nigeria. On November ,
, the Nigerian Government and Siemens Nigeria entered
into an out of court settlement, obligating Siemens Nigeria 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 debarment – against
Siemens Nigeria, Siemens AG, and Siemens employees.
As previously reported, the Vienna public prosecutor, Austria,
is conducting an investigation into payments between 
and  relating to Siemens AG Austria and its subsidiary
Siemens VAI Metal Technologies GmbH & Co. for which valid
consideration could not be identified. In September , the
Vienna public prosecutor extended the investigations to in-
clude a potential corporate liability of Siemens AG Austria for
tax evasion. Siemens is cooperating with the authorities.
As previously reported, in , the Anti-Corruption Commis-
sion of Bangladesh (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 employees of a public hospital to overcharge for the deliv-
ery of medical equipment in the period before . The ACC
has not substantiated the criminal charges within the time lim-
it provided by local law. Siemens Bangladesh filed a motion to
dismiss the charges. The court has stayed its proceedings.
As previously reported, in December , the ACC sent a re-
quest for information to Siemens Bangladesh Ltd. (Siemens
Bangladesh) related to telecommunications projects of
Siemens’ former Communications (Com) Group undertaken
prior to . In January , Siemens Bangladesh was in-
formed that in a related move the Anti Money Laundering
Department of the Central Bank of Bangladesh is conducting a
special investigation into certain accounts of Siemens Bangla-
desh and of former employees of Siemens Bangladesh in con-
nection with transactions for Com projects undertaken in the
period from  to . In February , the ACC sent a re-
quest for additional information.
As previously reported, in November  and in February
, a subsidiary of Siemens AG voluntarily self-reported
possible violations of South African anti-corruption regula-
tions in the period before  to the responsible South Afri-
can authorities. The authorities have requested further docu-
mentation. Siemens is cooperating with the authorities.
As previously reported, in June , the Frankfurt public
prosecutor searched premises of Siemens in Germany in re-
sponse to allegations of questionable payments relating to an
Industry project in Thailand. Siemens is cooperating with the
authority.
As previously reported, 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 an-
titrust violations in connection with a public invitation to ten-
der for a project in the province of Cordoba, Argentina, in
. Siemens is cooperating with the IADB.
As previously reported, in August , the IADB issued a no-
tice of administrative proceedings against, among others,
Siemens Venezuela alleging fraudulent misstatements and
public corruption in connection with a public invitation to
tender for healthcare projects in the Venezuelan provinces of
Anzoategui and Merida in . Siemens is cooperating with
the IADB.
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