Ex-Siemens directors to pay damages for bribery claims

2 Dec 2009

Siemens has reached settlement agreements with six of its former directors who were tied to a bribery scandal that hit the German firm in 2006.

The six former directors, who include former Siemens CEOs Heinrich von Pierer and Klaus Kleinfeld, have agreed to pay damages in connection with past cases of corruption.

Von Pierer is due to pay Siemens €5 million, while Kleinfeld will pay €2 million.

Prior to this annoucement, settlement agreements had also been reached with a further three former Siemens board members.

However, no agreement has been reached with former board members Thomas Ganswindt and Heinz-Joachim Neubürger, against whom criminal investigations by the Public Prosecutor’s Office Munich are pending.

The 2006 corporate scandal revealed Siemens had bribed various government officials in countries worldwide between 2002 and 2006 in order to secure contracts.

Siemens has so far paid €1.2 billion to settle lawsuits with the US and German governments.

Article courtesy of businessandleadership.com