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December 2, 2008 12:16:43 PM CST



Inside the Siemens Bribery Scandal

Posted Dec 28, 07 8:40 AM CST in World Technology Business 

(Newser) – In one of the world's largest corporate bribery scandals in recent years, German industrial giant Siemens allegedly channeled millions of euros in bribes to customers in Nigeria, Russia, Libya, and other countries to win infrastructure contracts. The Wall Street Journal traces the unearthing of the Siemens case across four years of investigations in Switzerland,  Liechtenstein, and Germany.

After Liechtenstein rolled back banking privacy laws post-9/11, a flurry of transfers to and from offshore firms controlled by Siemens execs caught auditors' attention in 2003. The scandal ballooned as Liechtenstein froze €7.6M in Siemens assets and German police raided Siemens offices. Siemens has flagged €1.3B in suspicious transactions made from 2000 to 2006.

Source Wall Street Journal

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Exterior view of a building of the German Siemens company in Munich, southern Germany, July 26, 2006. Siemens AG, one of Europe's biggest conglomerates, said Wednesday, Sept. 19, 2007, it has created...   (Associated Press)
Peter Loescher, President and CEO of the German company Siemens AG, gestures during a press conference in Munich, southern Germany, on Thursday, Nov. 29, 2007. (AP Photo/Christof Stache)   (Associated Press)
Dark clouds are seen over the administration building of the Siemens group in Munich, southern Germany, Dec. 18, 2006. An internal corruption investigation at industrial conglomerate Siemens AG has uncovered...   (Associated Press)
Peter Loescher, CEO of the Siemens stock company, speaks during a press reception of Siemens in Berlin, Germany, Thursday, July 5, 2007. The new chief executive of scandal-plagued Siemens AG said Thursday...   (Associated Press)
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