Siemens 2013 Annual Report Download - page 308

92 A. To our Shareholders 117 B. Corporate Governance 155 C. Combined Management Report
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ation could not be identified. In September , the Vienna
public prosecutor extended the investigations to include a
potential corporate liability of Siemens AG Austria for tax
evasion. Siemens is cooperating with the authorities.
As previously reported, in December , the Anti-Corruption
Commission of Bangladesh (ACC) sent a request for informa-
tion to Siemens Bangladesh related to telecommunications
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 employees of Siemens
Bangladesh in connection with transactions for Com projects
undertaken in the period from calendar  to . In Feb-
ruary  and June , the ACC sent requests for additional
information. Siemens is cooperating with the authorities.
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 calendar  to the responsible
South African authorities. The authorities have requested further
documentation. 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
antitrust violations in connection with a public invitation to
tender for a project in the province of Cordoba, Argentina, in
calendar . Siemens is cooperating with the IADB.
As previously reported, in August , the IADB issued a
notice 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 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, com-
pensatory damages, third-party litigation, including with com-
petitors, the formal or informal exclusion from public invita-
tions to tender, or the loss of business licenses or permits. Ad-
ditional 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 Dis-
trict Court I against the two former board members who were
not willing to settle, Dr. Thomas Ganswindt and Heinz-Joachim
Neubürger. The criminal proceedings pending with the
Munich District Court I against Dr. Ganswindt were terminated
in July . Against this backdrop, Siemens AG reached a
settlement with Dr. Thomas Ganswindt in November ,
which was subject to the approval of the Annual Shareholders’
Meeting. The Annual Shareholders’ Meeting of Siemens AG
approved the settlement agreement with Dr. Ganswindt in
January . Therefore Siemens withdrew from the proceed-
ings pending before the Munich District Court I in March ,
as provided for in the settlement. The lawsuit against
Heinz-Joachim Neubürger is still pending. In January , Mr.
Neubürger filed a counter claim against Siemens AG, requesting
the transfer of Stock Awards in fiscal  and  plus divi-
dends and interest. Siemens AG is contesting this counterclaim.
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