Siemens 2012 Annual Report Download - page 283

135 D. Consolidated Financial Statements 239 E. Additional Information
140 D. Consolidated Statements of Changes in Equity
142 D. Notes to Consolidated Financial Statements
232 D. Supervisory Board and Managing Board
136 D. Consolidated Statements of Income
137 D. Consolidated Statements of Comprehensive Income
138 D. Consolidated Statements of Financial Position
139 D. Consolidated Statements of Cash Flow

As previously reported, in December , the ACC sent a re-
quest for information to Siemens Bangladesh related to tele-
communications projects of Siemens’ former Communications
(Com) Group undertaken prior to calendar . In January
, Siemens Bangladesh was informed 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 Bangladesh and of former em-
ployees of Siemens Bangladesh in connection with transac-
tions for Com projects undertaken in the period from calendar
 to . In February  and June , the ACC sent
requests for additional information.
As previously reported, in November  and in February
, a subsidiary of Siemens AG voluntarily self-reported pos-
sible violations of South African anti-corruption regulations in
the period before calendar  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 pros-
ecutor searched premises of Siemens in Germany in response
to allegations of questionable payments relating to an Infra-
structure & Cities 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 cal-
endar . 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 ten-
der for healthcare projects in the Venezuelan provinces of
Anzoategui and Merida in calendar . Siemens is cooperat-
ing 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
or other illegal acts. The Company ’s operating activities, finan-
cial results and reputation may also be negatively affected,
particularly as a result of penalties, fines, disgorgements,
compensatory 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.
Civil litigation
As previously reported, Siemens AG reached a settlement with
nine out of eleven former members of the Managing and
Supervisory Board in December . The settlement relates to
claims of breaches of organizational and supervisory duties
in view of the accusations of illegal business practices that
occurred in the course of international business transactions
in calendar  to  and the resulting financial burdens
for the Company. The Annual Shareholders’ Meeting approved
all nine settlements between the Company and the former
members of the Managing and Supervisory Board in January
. The shareholders also approved a settlement agreement
between the Company and its directors and officers insurers
regarding claims in connection with the D&O insurance of up
to € million. Siemens recorded € million gains, net of
costs, from the D&O insurance and the nine settlements. In
January , Siemens AG filed a lawsuit with the Munich
District Court I against the two former board members who
were not willing to settle, Thomas Ganswindt and Heinz-
Joachim Neubürger, which is currently pending. Siemens AG
and Mr. Ganswindt are in discussions to resolve the matter.
As previously reported, in June , the Republic of Iraq filed
an action requesting unspecified damages against  named
defendants with the United States District Court for the South-
ern District of New York on the basis of findings made in the
“Report of the Independent Inquiry Committee into the United
Nations Oil-for-Food Programme.” Siemens S.A.S. France,
Siemens Sanayi ve Ticaret A.S., Turkey, and OSRAM Middle East
FZE, Dubai, are among the  named defendants. Process was
served upon all three Siemens subsidiaries. The three Siemens
subsidiaries will defend themselves against the action.