Siemens 2013 Annual Report Download - page 307

253 D. Consolidated Financial Statements 357 E. Additional Information
254 D.1 Consolidated Statements of Income
255 D.2 Consolidated Statements of Comprehensive Income
256 D.3 Consolidated Statements of Financial Position
257 D. Consolidated Statements of Cash Flows
258 D.5 Consolidated Statements of Changes in Equity
260 D.6 Notes to Consolidated Financial Statements
348 D.7 Supervisory Board and Managing Board
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that had been reported before, namely the investigations by
the Brasilia and Sao Paulo public prosecutors related to alleged
misconduct in calendar  and around , respectively.
Siemens is cooperating with the authorities.
In August , a Brazilian Appellate Court upheld a decision to
suspend Siemens Ltda. Brazil from participating in public bids
and signing contracts with public administrations in Brazil for
a five year term, based on alleged irregularities in calendar
 and  public tenders. Siemens is seeking remedial ac-
tion against the decision of the Appellate Court.
As previously reported, Siemens AG had filed a request for arbi-
tration against the Republic of Argentina (Argentina) with the
International Center for Settlement of Investment Disputes (IC-
SID) of the World Bank. Siemens AG claimed that Argentina
had unlawfully terminated its contract with Siemens for the
development and operation of a system for the production of
identity cards, border control, collection of data and voters’
registers (DNI project) and thereby violated the Bilateral Invest-
ment Protection Treaty between Argentina and Germany (BIT).
A unanimous decision on the merits was rendered by the ICSID
arbitration tribunal in February , awarding Siemens AG,
inter alia, compensation in the amount of US$. million,
plus compound interest thereon at a rate of .% since May
, . Argentina subsequently filed applications with the
ICSID aiming at the annulment and reversal of the decision
and a stay of enforcement of the arbitral award. In August
, Argentina and Siemens AG reached an agreement to mu-
tually settle the case and discontinue any and all civil proceed-
ings in connection with the case without acknowledging any
legal obligations or claims. No payment was made by either
party. As previously reported, the Argentinean Anti-Corruption
Authority is conducting an investigation against individuals
into corruption of government officials in connection with
the award of the contract for the DNI project to Siemens in
calendar . 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 repeatedly requested judicial assis-
tance from the Munich public prosecutor and the federal court
in New York. In December , the U.S. Securities and
Exchange Commission (SEC) and U.S. Department of Justice
filed an indictment against nine individuals based on the same
facts as the investigation of the Argentinean Anti-Corruption
Authority. Most of these individuals are former Siemens
employees. The former member of the Managing Board of
Siemens AG, Dr. Uriel Sharef, is also involved. Siemens AG is
not party to the proceedings.
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. The
GPIC’s investigation was focused on possible criminal liability
of politicians and other state officials. Greek public prosecutors
are separately investigating certain fraud and bribery allega-
tions involving – among others – former board members and
former executives of Siemens A.E., Elektrotechnische Projekte
und Erzeugnisse, Greece (Siemens A.E.), and Siemens AG. In
January , the GPIC alleged in a letter to Siemens A.E. that
the damage suffered by the Greek state amounted 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. In
April , the Greek Parliament approved a settlement agree-
ment between Siemens and the Greek State, the material pro-
visions of which include the following: Siemens waives public
sector receivables in the amount of € million. Furthermore
Siemens agrees to spend a maximum of € million on various
anti-corruption and transparency initiatives, as well as univer-
sity and research programs and to provide € million of
financial support to Siemens A.E. to ensure its continued pres-
ence in Greece. In exchange, the Greek State agrees to waive
all civil claims and all administrative fines related to the
corruption allegations and to utilize best efforts to resolve all
pending disputes between Siemens and the Greek state-com-
panies or its public authorities.
In February , the Munich public prosecutor notified
Siemens AG of a request for mutual assistance in criminal mat-
ters by the Swiss Federal Prosecution authority. The investiga-
tion of the Swiss Federal Prosecution involved the Swedish
subsidiary Siemens Industrial Turbomachinery (SIT) in con-
nection with alleged payments to employees of a Russian nat-
ural gas production company between calendar  and
. In July , the Swiss Federal Prosecution launched a
criminal investigation against SIT for organizational neglect. In
September , the investigation was discontinued due to a
settlement with the Swiss Federal Prosecution that included a
restitution payment to a nonprofit organization and a compen-
sation claim relating to forfeiture of profits in the lower double
digit US$ million range.
As previously reported, the Vienna public prosecutor, Austria,
is conducting an investigation into payments between calen-
dar  and  relating to Siemens Aktiengesellschaft
Österreich, Austria, and its subsidiary Siemens VAI Metal
Technologies GmbH & Co., Austria, for which valid consider-