Aftermath of Siemens’ Corruption Charges

Siemens AG, a global leader in energy solutions, came under fire in 2009 after corruption allegations surfaced that had the German company offering over $1 billion in bribes to government officials in at least 10 countries including Nigeria. In 2008, Siemens agreed to pay $800 million in fines to the US government under its US Foreign Corrupt Practices Act while in 2009 it struck a deal with the World Bank.

 

Siemens and the World Bank agreed on a settlement that has the company giving $100 million over 15 years to aid in the anti-corruption battle through training and education, assisting governments in recovering stolen assets, and strengthening efforts to combat corrupt practices. While the agreement came at a heavy price, Siemens was prohibited from bidding on any World Bank project for two years.

 

In its first tranche of $40 million, around 300 nonprofit organizations from 66 countries put in to receive a chunk of the pie. Brazil’s Instituto Ethos will be among one of the first recipients that receives help to ensure transparent awards of the infrastructure contracts for the World Cup 2014. Vienna-based international organization, Anti-Corruption Academy, will also receive funding for research and teaching. Africa will also be on the list for future projects including initiatives in Angola, Egypt, Nigeria, and South Africa.

 

“Siemens is now setting a global example,” said Theo Waigel, the company’s independent Compliance monitor. “Here a compliance organization with over 600 employees has been established. The new management operates according to the basic principle that only clean business is Siemens business.’”

 

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