Former Siemens manager convicted of corruption
A former Siemens AG manager was convicted of corruption on Monday and sentenced by a Munich state court to two years' probation and a 108,000 euros ($170,000) fine.
By Agencies |
MUNICH: A former Siemens AG manager was convicted of corruption on Monday and sentenced by a Munich state court to two years' probation and a 108,000 euros ($170,000) fine. Reinhard Siekaczek, 57, was convicted of 49 counts of breach of trust for his role in a corruption scandal at the industrial conglomerate. He acknowledged setting up slush funds while a manager at the ICN fixed-line telephone network division.
``The court has absolutely no doubts of the events,'' said presiding Judge Peter Noll in reading the panel's decision.
Prosecutors said Siekaczek set up a complex network of shell corporations to siphon off company money over several years. They said the money was used as bribes to help secure contracts abroad by paying off would-be suppliers, government officials and potential customers.
Siekaczek testified that his superiors had told him to create a new payment system after paying bribes abroad became a criminal offense in Germany in the late 1990s. He said judicial authorities had already been looking into similar accounts set up in Austria.
``Naturally it was known to me and everyone that we pay commissions to secure orders,'' he testified, adding that they had been handled ``very discreetly'' within a small circle of people. The judge said, however, it is still not clear who received the payments or whether Siemens benefited from Siekaczek's actions.
``At the end of this trial, we can still not exactly say where this money is,'' Noll said. Siemens has acknowledged dubious payments of up to 1.3 billion euros($2 billion) in a wider corruption case uncovered last year. Siemens, which makes everything from wind turbines to trams, agreed in October to pay a 201 million euros ($316.25 million) fine to end some legal proceedings in Germany related to the investigation.
``The court has absolutely no doubts of the events,'' said presiding Judge Peter Noll in reading the panel's decision.
Prosecutors said Siekaczek set up a complex network of shell corporations to siphon off company money over several years. They said the money was used as bribes to help secure contracts abroad by paying off would-be suppliers, government officials and potential customers.
Siekaczek testified that his superiors had told him to create a new payment system after paying bribes abroad became a criminal offense in Germany in the late 1990s. He said judicial authorities had already been looking into similar accounts set up in Austria.
``Naturally it was known to me and everyone that we pay commissions to secure orders,'' he testified, adding that they had been handled ``very discreetly'' within a small circle of people. The judge said, however, it is still not clear who received the payments or whether Siemens benefited from Siekaczek's actions.
``At the end of this trial, we can still not exactly say where this money is,'' Noll said. Siemens has acknowledged dubious payments of up to 1.3 billion euros($2 billion) in a wider corruption case uncovered last year. Siemens, which makes everything from wind turbines to trams, agreed in October to pay a 201 million euros ($316.25 million) fine to end some legal proceedings in Germany related to the investigation.
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An investigation commissioned by Siemens has found evidence of violations across the company and in several countries. Siemens shares were down 1.36 per cent to 72.54 euros ($114.13) in morning trading in Frankfurt. Download
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