The Daily Caveat is written by Michael Thomas, a recovering corporate investigator in the Washington, DC-area. [More]
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2/20/2009
Frontline Production on Corporate Bribery
1/27/2009
For Corporations, Can Honesty Be a Profitable Policy?
Siemens Signs off on Billions in Fines
Siemens Sends Notice of Coming Settlement
A Look At Siemens New Sherriff
Feldmayer Tesitifies in Siemens Bribery Trial
Global Anti-Bribery Regime Begins to Take Shape
More Grief for Siemens 9/01/2008
When Bribery Isn't Bribery
Siemens and the SEC Close to a Deal? 8/17/2008
News to Nobody: Siemens Internal Corruption Controls Found Lacking 8/10/2008
German Authorities Ready Siemens Trial On Illegal Trade Union Payments
A Great Line
Siemens Director Reinhard Siekaczek Avoids Jailtime
Former Siemens Top Brass Denies Wrongdoing, Post Schaefer Testimony
-- MDT
7/23/2008
Siemens Plans to Loose the Legal Hounds on Former Managers Implicated in Bribery Scandal
Former Anti-Corruption Chief Testifies in Siemens Bribery Trial, Results Ugly For Siemens Management
Prosecutors Finger Siemens Board Member in Union Bribes
Bribery Convictions for Two Former Siemens Managers
Transparency International Shames Countries Soft on Corporate Bribery Prosecution
Former Siemens Manager Heads to Trial
Siemens' von Pierer Will Face No Charges 4/28/2008
FCPA Compliance is Big Business
Another Exec Out a Siemens
Siemens' von Pierer Fingered as Probe Goes (Even More) Global
Siemens Brass Bobs and Weaves as New Information on Bribery Culpability Emerges
Former Siemens Manager Faces Embezzelment Charges
Siemens Paid Bribes to Keep their Other Bribes Quiet 3/08/2008
The Economist Handicaps Loscher's Chances of 'Stopping the Rot' at Siemens 1/17/2008
Siemens in For a Rough Ride as More First-Hand Accounts of Misconduct Emerge
Shareholders are Plotting at Siemens
WSJ Follows the Siemens Money Trail
Siemens and the SEC Have "Good Conversation"
Siemens New Finance Chief Appointed, Removed
More Searching at Siemens Offices 12/11/2007
British Govt to Circle Back on BAE Prosecution for Another Go. 11/18/2007
Munich Ruling Details Siemens Bribes 11/16/2007
Siemens Braces for U.S. Penalties
Is is Really Possible for the Siemens Bribery Probe to Get Bigger?
SEC and Siemens to Get Some Facetime 11/01/2007
Siemens Hearts Whistleblowers
10/15/2007
SEC Begs German Assistance in Siemens Invvestigation 10/09/2007
Siemens Settlement Criticized
Speigel Tells Us: Why Siemens Should Never Have Been Listed by Wall Street
Siemens Slush Fund Probe Continues, $1.5 Billion in Question
Siemens Taps GE GC to Take Charge of Compliance 9/06/2007
More on the SEC's Letter Rogatory Request to the German Justice Ministry
Siemens Probes Extend to China
Siemens Exec Arrested...
Back in the Saddle, A Little Catching Up to Do
Siemens Fires Head of Compliance, Bribery Scandal Unabated
The Siemens Investigation Turns Up Even More Payments
Swiss Prosecutors Lock Up Siemens Assets
The World Bank Delving into Siemens Bribery Investigation
Siemens Anti-Corruption Chief Forced Out After Six Months
Labor Leader Admits Taking Siemens Bribes
Siemens Bribery Investigation Turns To China 5/22/2007
German Companies On Notice - Scandal may Not Stop at Siemens
Siemens Pulls Trigger on new CEO
First Sentences Come Down in "Bottomless" Siemens Corruption Probe
Siemens Bribery Pit To Get Deeper According to Debevoise & Plimpton Internal Investigation
Vietnamese Businessman Named as recipient of Siemens Bribes
Kleinfeld Resigns (or Was it A Coup?)
Siemens Executive Shuffle... Kleinfeld on his last legs?
Board Chair Resigns at Siemens
How to End Bribery in Business
Deloitte & Siemens, Another Scandal in the Making?
Siemens' Feldmayer Released 4/04/2007
Siemens Facing Lawsuit on Union Payoffs
Siemens Investigation Expands, Plot Thickens
Another Search and More Arrests Coming in Siemens Bribery Probe
Siemens Board Member Arrested
Siemens Shockwaves.... German Companies Tighten Up
Siemens Division Pleads Guilty in Fraud
DOJ Probes Siemens
New Audit Shows Depth of Corruption at Siemens
Siemens Duo Deny Connection to Bribery Probe
KPMG and Siemens, A Match Made in Prison?
1/12/2007
Former Siemens CFO a Suspect in Bribery Investigation
Siemens (Iraq) Bribery Probe Stirring
Six Siemens Bribery Probe Suspects Released
More on Thomas Ganswindt, the Former Siemens Board Member Arrested in the Ongoing Bribery Probe 12/17/2006
Siemens Aware Bribery Probe Brewing Since '04?
Senior Ex-Siemens Official Held in Bribery Probe Has a Name
Siemens Bribery Probe Expands
Siemens Creates Task Force in Response To Bribery Probe
Frontline Production on Corporate Bribery
Typical great work from PBS's Frontline program. The full report will broadcast in April, but you can check out clips online right now, right here.
-- MDT
-- MDT
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For Corporations, Can Honesty Be a Profitable Policy?
A discussion of Siemens, BAE, OFAC and how regulation can be good for business, brought to you by the chair of the OECD Working Group on Bribery, Mark Pieth and Radha Ivory, a Research Fellow at the Basel Institute on Governance. Courtesy of Forbes of all places.
-- MDT
12/15/2008
-- MDT
Labels: BAE, Mark Pieth, OFAC, Radha Ivory, Siemens
Siemens Signs off on Billions in Fines
Looking to close the book on the massive bribery investigation, Siemens settles for big bucks on lesser charges.
-- MDT
11/06/2008
-- MDT
Labels: bribery, settlement, Siemens
Siemens Sends Notice of Coming Settlement
They've set aside a$1.3 billion to help resolve the ongoing corruption probes in Europe and the U.S. While some had suggested that closing out the various investigations could prove much more costly, market analysts have referred to the probes as "essentially over" at this point. More on this at CFO.com, along with some additional detail fits into the bigger picture of the current state of European business ethics.
-- MDT
10/09/2008
-- MDT
Labels: settlement, Siemens
A Look At Siemens New Sherriff
Interesting profile of Peter Solmssen, Siemens newish general counsel and all around overseer of the company's anti-corruption efforts. Some re-hash here of Siemens recent travails, but also some decent handicapage of how Solmssen may fare in keeping the massive conglomerate on the straight and narrow. All via the, sadly soon to be discontinued, International Herald Tribune.
-- MDT
9/24/2008
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Labels: general counsel, General Re, Peter Solmssen, Siemens
Feldmayer Tesitifies in Siemens Bribery Trial
In acknowledging his authorization of a $44 million payment to a German labor leader, Wilhelm Schelsky, "I don't want to escape my responsibilities, but I never thought at the time that this agreement with Schelsky would violate laws.'' Via Bloomberg.
-- MDT
9/15/2008
-- MDT
Labels: Johannes Feldmayer, Siemens, William Howard
Global Anti-Bribery Regime Begins to Take Shape
Finally getting serious about enforcing OFAC in the U.S. Not letting corporations write of their bribes as tax deductions in Europe - it's a whole new world out there!
-- MDT
9/04/2008
-- MDT
More Grief for Siemens 9/01/2008
When Bribery Isn't Bribery
That would be in Germany prior to 2002... And thanks to that Siemens has seen a €38 million fine overturned and a few bribery convictions along with it.
-- MDT
8/20/2008
-- MDT
Labels: bribery, overturned, Siemens
Siemens and the SEC Close to a Deal? 8/17/2008
News to Nobody: Siemens Internal Corruption Controls Found Lacking 8/10/2008
German Authorities Ready Siemens Trial On Illegal Trade Union Payments
The key figures are names that should be familiar to anyone who has been following the Siemens case Johannes Feldmayer (former Siemens bard member) and Wilhelm Schelsky (former head of the Association of Independent Employees trade union). Feldmayer is accused of going above and beyond to foster good relations with the AUB - tens of millions of dollars above and beyond.
For more on the upcoming trial, which has 100 witnesses lined up already, try the WSJ Law Blog. For more background on the Feldmayer and Schelsky try the tags below. We've got you covered.
8/05/2008
For more on the upcoming trial, which has 100 witnesses lined up already, try the WSJ Law Blog. For more background on the Feldmayer and Schelsky try the tags below. We've got you covered.
Labels: AUB, Johannes Feldmayer, Siemens, Wilhelm Schelsky
A Great Line
From Matt Daily at Reuters, RE: Klaus Kleinfeld, Siemens and Alcoa.
-- MDT
7/30/2008
-- MDT
Labels: Alcoa, Klaus Kleinfeld, Siemens
Siemens Director Reinhard Siekaczek Avoids Jailtime
Convicted on 49 counts of breach of trust, Siekaczek has been handed a two-year suspended sentence. He'll also pay hefty fine.
-- MDT
7/25/2008
-- MDT
Labels: convicted, Reinhard Sieaczek, Siemens
Former Siemens Top Brass Denies Wrongdoing, Post Schaefer Testimony
I know you're shocked, right?
Meanwhile, legal action against their former managers and executives is expected to be filed by Siemens next Tuesday.
Meanwhile, legal action against their former managers and executives is expected to be filed by Siemens next Tuesday.
-- MDT
Labels: Albrecht Schaefer, bribery, Heinz-Joachim Neubürger, Siemens
Siemens Plans to Loose the Legal Hounds on Former Managers Implicated in Bribery Scandal
This had been intimated by the Siemens brass for some time, but now things are starting to get official, as the company has announced its intent to file suit against 10 former board members, as well as the former chairman and chief executive.
- MDT
7/22/2008
- MDT
Former Anti-Corruption Chief Testifies in Siemens Bribery Trial, Results Ugly For Siemens Management
Surprising virtually no one, former Siemens anti-corruption official, Albrecht Schaefer indicated in his recent testimony that the company's top brass ignored the bribery that was happening right under their noses.
Moreover, Schaefer stated flatly that he personally informed several familiar names (Heinz-Joachim Neubuerger, Juergen Radomski, and Thomas Ganswindt) about the dubious practices he had observed.
-- MDT
7/07/2008
Moreover, Schaefer stated flatly that he personally informed several familiar names (Heinz-Joachim Neubuerger, Juergen Radomski, and Thomas Ganswindt) about the dubious practices he had observed.
-- MDT
Labels: Albrecht Schaefer, bribery, Heinz-Joachim Neubürger, Juergen Radomski, Siemens, Thomas Ganswindt
Prosecutors Finger Siemens Board Member in Union Bribes
Former Siemens executive board member, Johannes Feldmayer allegedly authorized more than $48 million in the service of bettering union relations.
That would do it, I imagine.
The German government, however, has taken a dim view of this action.
Both Feldmayer and AUB union boss, Wilhelm Schelsky have been charged in the Siemens bribery probe on fraud, tax evasion and beach of trust grounds.
Schelsky, for his part, has a back-log of other legal problems to boot.
More on Feldmayer and Schelsky via Blooomberg.
-- MDT
6/30/2008
That would do it, I imagine.
The German government, however, has taken a dim view of this action.
Both Feldmayer and AUB union boss, Wilhelm Schelsky have been charged in the Siemens bribery probe on fraud, tax evasion and beach of trust grounds.
Schelsky, for his part, has a back-log of other legal problems to boot.
More on Feldmayer and Schelsky via Blooomberg.
-- MDT
Labels: bribery, Johannes Feldmayer, Siemens, Wilhelm Schelsky
Bribery Convictions for Two Former Siemens Managers
Via the New York Times:
A seeming multitude of much more sprawling investigations are continuing into the company's business practices and no one is seeing bottom just yet.
-- MDT
6/24/2008
Andreas Kley, a former finance chief at Siemens’s power-generation unit, and Horst Vigener, a consultant — were convicted of paying about 6 million euros in bribes from 1999 to 2002 to help Siemens win gas-turbine supply contracts with Enel, an Italian energy company. The contracts were valued at approximately 450 million euros ($609 million).Along with the two convictions, Siemens itself has been ordered to pay $50 million in fines. Siemens has cried foul and has stated their plans to appeal the rulings.
A seeming multitude of much more sprawling investigations are continuing into the company's business practices and no one is seeing bottom just yet.
-- MDT
Labels: Andreas Kley, bribery, Horst Vigener, Siemens
Transparency International Shames Countries Soft on Corporate Bribery Prosecution
Read a brief UK-centric recap here or check out the full report at the Transparency website.
-- MDT
5/26/2008
-- MDT
Labels: BAE, bribery, prosecution, Siemens
Former Siemens Manager Heads to Trial
The company's colorful interpretation of the word "commissions" may not fare too well under the harsh gaze of the German judiciary. We'll see as the case against Reinhard Siekaczek, the one time Siemens manager who is out in front of the global bribery probe that has subsumed his former employer. Siekaczek is facing 58 counts of breach of trust and the real question is who he'll implicate on his way down.
--MDT
5/18/2008
--MDT
Labels: bribery, Reinhard Siekaczek, Siemens
Siemens' von Pierer Will Face No Charges 4/28/2008
FCPA Compliance is Big Business
Interesting article from WaPo on the rise of Foreign Corrupt Practices Act compliance consulting. Keep an eye out for investigator cameos from Michael Hershman of the Fairfax Group and Dan Karson of Kroll as you take it in.
Good stuff.
-- MDT
4/23/2008
Good stuff.
-- MDT
Labels: Fairfax Group, FCPA, Kroll, Siemens
Another Exec Out a Siemens
This time Erich Reinhardt - a soon to be former Siemens management board member.
-- MDT
4/20/2008
-- MDT
Labels: bribery, Erich Reinhardt, Siemens
Siemens' von Pierer Fingered as Probe Goes (Even More) Global
For months we've been talking about the Siemens bribery probe's weed-like expansion. Every time one is tempted to think that it can't go further, it does. 270 individuals are currently being investigated by German authorities and Siemens has also apparently made plans to sue former company managers for damages - and the cases could come within weeks. '
Last week, for the first time a witness (former Siemens compliance guru, Albrecht Schaefer ) went on record tying former Siemens CEO, Heinrich von Pierer personally to the scandal. For his part, von Pierer continues to deny any and all charges. However, claims of innocence haven't stopped von Pierer from chatting with German prosecutors.
About the weather, I'm sure.
-- MDT
4/15/2008
Last week, for the first time a witness (former Siemens compliance guru, Albrecht Schaefer ) went on record tying former Siemens CEO, Heinrich von Pierer personally to the scandal. For his part, von Pierer continues to deny any and all charges. However, claims of innocence haven't stopped von Pierer from chatting with German prosecutors.
About the weather, I'm sure.
-- MDT
Labels: Albrecht Schaefer, bribery, Heinrich von Pierer, Siemens
Siemens Brass Bobs and Weaves as New Information on Bribery Culpability Emerges
As many suspected from the start, management knowledge of Siemens' bribery allegations now appears to date back much further than the firm had previously admitted - as far back as 2003. Not exactly news to anyone who has been reading this space for any length of time...
But now Siemen's former compliance officer, Albrecht Schaefer - who was cut loose back in August of 2007 - has it on the record in court that he informed chairman Heinrich von Pierer (who, for his part, is facing other indignations this week) and other top managers about the bribes.
In fact, he even wrote of the bribes as business strategy in an internal document in 2004. Read all about it at Deutsch Welle.
-- MDT
4/11/2008
But now Siemen's former compliance officer, Albrecht Schaefer - who was cut loose back in August of 2007 - has it on the record in court that he informed chairman Heinrich von Pierer (who, for his part, is facing other indignations this week) and other top managers about the bribes.
In fact, he even wrote of the bribes as business strategy in an internal document in 2004. Read all about it at Deutsch Welle.
-- MDT
Labels: Albrecht Schaefer, bribery, Heinrich von Pierer, Peter Loescher, Siemens
Former Siemens Manager Faces Embezzelment Charges
The name "Reinhard S" goes back to the heady days of Siemens office raids and black-budget bribery. It was the global omni-corp's telecom division, Reinhard's home, that first faced corruption charges in what turned into a glob-spanning rebuke of Siemen's business practices.
While the general probe into Siemen's telecom group has ended, former sales manager "Reinhard S" is only now preparing to stand trial on charges of embezzlement and breach of trust for his role in the wide-spanning corruption. The festivities begin on May 26.
-- MDT
4/03/2008
While the general probe into Siemen's telecom group has ended, former sales manager "Reinhard S" is only now preparing to stand trial on charges of embezzlement and breach of trust for his role in the wide-spanning corruption. The festivities begin on May 26.
-- MDT
Labels: bribery, embezzelment, Reinhard S, Siemens
Siemens Paid Bribes to Keep their Other Bribes Quiet 3/08/2008
The Economist Handicaps Loscher's Chances of 'Stopping the Rot' at Siemens 1/17/2008
Siemens in For a Rough Ride as More First-Hand Accounts of Misconduct Emerge
It is going to be a bumpy ride... Dozens have apparently come forward, ready to "unload" what they know. And the trail leads to the top.
-- MDT
1/13/2008
-- MDT
Labels: Siemens, sinking feeling
Shareholders are Plotting at Siemens
On top of their beef list is the proposed re-appointment of KPMG as the firm's auditor. Sounds like sparks will fly on January 24th at Siemens annual meetings.
-- MDT
1/02/2008
-- MDT
Labels: KPMG, shareholders, Siemens
WSJ Follows the Siemens Money Trail
Most notable for the handy diagram of suspicious bank transactions. Oh yeah, and the excellent reporting...
The Daily Caveat just loves graphics.
--MDT
12/19/2007
The Daily Caveat just loves graphics.
--MDT
Siemens and the SEC Have "Good Conversation"
At least according to the Siemens company spokesman, you also indicated that the talks will be continuing. I bet they will... Meanwhile back at derr ranch, more housecleaning is planned through the start of '08.
-- MDT
12/17/2007
-- MDT
Siemens New Finance Chief Appointed, Removed
Apparently Hannes Apitzsch was tainted by scandal before he even got he seat warm. Meanwhile, Siemens and the SEC are planning a pow-wow, for today actually.
-- MDT
12/13/2007
-- MDT
Labels: bribery, Hannes Apitzsch, SEC, Siemens
More Searching at Siemens Offices 12/11/2007
British Govt to Circle Back on BAE Prosecution for Another Go. 11/18/2007
Munich Ruling Details Siemens Bribes 11/16/2007
Siemens Braces for U.S. Penalties
The Siemens black accounts / bribery scandal would be the biggest FCPA case of all time and the U.S. has a history of showing up foreign governments when it comes to penalties. Conventinal wisdom says that the fines imposed here will be the biggest yet. More on the U.S. Siemens investigation from BusinessWeek.
-- MDT
11/12/2007
-- MDT
Is is Really Possible for the Siemens Bribery Probe to Get Bigger?
Apparently. The talk is now that the company's off the books payments total almost $2 billion. Already 140 Siemens employees have been fired in the probe and 330 more have received some form of reprimand while keeping their jobs. More from the IHT.
-- MDT
11/09/2007
-- MDT
SEC and Siemens to Get Some Facetime 11/01/2007
Siemens Hearts Whistleblowers
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Preoccupied with jammies or strawberry jam, perhaps? Very cute Halloween picture of Baby Thomas!
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SEC Begs German Assistance in Siemens Invvestigation 10/09/2007
Siemens Settlement Criticized
While the recent settlement between Siemens and Munich prosecutors does not preclude other investigations moving forward, many have stepped forth to criticize German authorities for letting Siemens off so lightly for what seemed like wide ranging, brazen illegal activity.
--MDT
10/04/2007
--MDT
Labels: bribery, Germany, settlement, Siemens
Speigel Tells Us: Why Siemens Should Never Have Been Listed by Wall Street
The summary...
-- MDT
9/27/2007
"Germany's scandal-plagued Siemens should have been barred from being listed on the US stock exchange in 2001. According to internal reports, the company's management at the time, under then-CEO Heinrich von Pierer, was guilty of serious negligence."The full article, from Spiegel.
-- MDT
Labels: bribery, Heinrich von Pierer, SEC, Siemens
Siemens Slush Fund Probe Continues, $1.5 Billion in Question
Dating back to the mid-1990s, questionable deals and dealings at Siemens now hang heavy over the company - to the tune of $1.5 billion. Investigators in Europe, Asia and the U.S. continue to dig in, with Siemens' own internal investigators at Debevoise & Plimpton continue to make more information public.
One major question spiraling out of all this is what roll Siemens' auditor, KPMG played in allowing all this to come to pass. That is a subject D&P plans to turn their attention to in short order. And if there is one blogger out there who you should look to for some deep thoughts on the subject of KPMG/Siemens, it would be Francine McKenna at RE: The Auditors.
-- MDT
9/20/2007
One major question spiraling out of all this is what roll Siemens' auditor, KPMG played in allowing all this to come to pass. That is a subject D&P plans to turn their attention to in short order. And if there is one blogger out there who you should look to for some deep thoughts on the subject of KPMG/Siemens, it would be Francine McKenna at RE: The Auditors.
-- MDT
Labels: bribery, Debevoise and Plimpton, KPMG, Siemens
Siemens Taps GE GC to Take Charge of Compliance 9/06/2007
More on the SEC's Letter Rogatory Request to the German Justice Ministry
Forbes has much more detail on the request put in to German authorities by U.S. regulators back in March for information on the Siemens bribery probe.
-- MDT
-- MDT
Labels: bribery, Letter Rogatory, SEC, Siemens
Siemens Probes Extend to China
20 have been let go by Siemens China operation on suspicion of corruption and it is known that Chinese authorities have interrogated at least one Siemens employee. Another person, a hospital employee, has also been arrested.
-- MDT
9/02/2007
-- MDT
Siemens Exec Arrested...
Big backlog of post-baby Siemens news to wade through, but here's a quick hit for your Labor Day reading - Johannes Feldmayer, a member of Siemens management board became the most senior executive yet arrested in the onling transnational briber probe surrounding the company. was detained as prosecutors
8/29/2007
Labels: Johannes Feldmayer, Siemens
Back in the Saddle, A Little Catching Up to Do
Hey there Daily Caveat readers...it feels good to get back on here and post a few things while baby and mom are napping. Thanks to everyone who sent along well wishes as well as articles and things to keep me in the loop. So, what did I miss while in the land of vomit and diapers? For starters, a few things:
-- MDT
8/14/2007
- Greece practices hedge fiend catch and release program with fugitive Angelo Haligiannis.
- The Bank of Montreal opens up about their ongoing natural gas trading investigation.
- Munich-based Siemens prosecutors met yesterday with their counterparts at the SEC.
- Trial of former manager, Kourosh Partow, gives window into blind-eye culture at Countrywide Financial.
- Three of four defendants in Peregrine Systems fraud case will be retried after jury deadlock.
- Reuters debates the mixed legacy of class action king and soon-to-be retiree, Bill Lerach.
-- MDT
Labels: Angelo Haligiannis, Bank of Montreal, Bill Lerach, Countrywide, Kourosh Partow, Peregrine Systems, Siemens
Siemens Fires Head of Compliance, Bribery Scandal Unabated
The bealeguered Siemens has seen the departure of another high-level executive. Albrecht Schaefer, former head of compliance, and the individual who presided over the firm's ethics regime while the massive bribery took place, has been let go.
The move had been rumored for several weeks in the German press and Debevoise & Plimpton, the law firm drafted by Siemens to manage its internal investigation had also reportedly been pushing for Schaefer's ouster.
For more on the Albrect Schaefer departure, check out The Ethical Corporation.
Meanwhile, the Siemens bribe total keeps getting higher...now topping $1.35 billion. Details on that front here.
-- MDT
7/30/2007
The move had been rumored for several weeks in the German press and Debevoise & Plimpton, the law firm drafted by Siemens to manage its internal investigation had also reportedly been pushing for Schaefer's ouster.
For more on the Albrect Schaefer departure, check out The Ethical Corporation.
Meanwhile, the Siemens bribe total keeps getting higher...now topping $1.35 billion. Details on that front here.
-- MDT
Labels: Albrecht Schaefer, bribery, Debvoise and Plimpton, Siemens
The Siemens Investigation Turns Up Even More Payments
...significantly in excess of the $575 million previously reported. Meanwhile, Debevoise & Plimpton, the law firm Siemens hired to investigate itself has apparently complained to the Siemens supervisory board regarding the company's failure to cooperate.
-- MDT
7/20/2007
-- MDT
Labels: bribery, Debvoise and Plimpton, Siemens
Swiss Prosecutors Lock Up Siemens Assets
More than $83 million has been cut off from Siemens by Swiss investigators as they continue their multinational probe of corrupt business practices at the German electronics giant. Concurrent investigations continue apace in Italy, Germany and the U.S.
-- MDT
7/02/2007
-- MDT
Labels: investigation, Siemens
The World Bank Delving into Siemens Bribery Investigation
There is some concern from the World Bank, apparently, that some of the projects the organization sponsors may have intersected with Siemens' bribery tactics - not exactly a victory for international transparency. Forbes has details.
-- MDT
6/29/2007
-- MDT
Labels: bribery, Siemens, World Bank
Siemens Anti-Corruption Chief Forced Out After Six Months
On the eve of Peter Loescher's takeover of the Siemens C-suite the company's newly appointed anti-corruption officer is calling it a day. Daniel Noa, a former state prosecutor and the current head of Siemens compliance group, has apparently been forced out by unfriendly forces within the company. The FT mentioned something cryptic about him not trusting the Siemens legal department... Noa will remain as a consultant for the next eighteen months. Despite all this, the company insists tat its internal clean-up is proceeding apace.
-- MDT
6/01/2007
-- MDT
Labels: bribery, corruption, Daniel Noa, Peter Loescher, Siemens
Labor Leader Admits Taking Siemens Bribes
Wilhelm Schelsky, the former head of the German union, AUB has admitted that he took money from Siemens in exchange for acting as an "undercover lobbyist" for the company.
The comments from Schelsky, which appeared Thursday in a German magazine, would seem to add credence to the lawsuit brought against Siemens by rival union IG Metall which alleged just this type of shenanigans. Schelsky, who has been in police custody since February, reportedly received more than $45 million dollars from Siemens.
The Siemens board member who made the payments to Schelsky, Johannes Feldmayer, was also arrested on charges of conspiracy but has since been released on bond. His ultimate fate, as well as Schelsky's is still unknown, but none of this is particularly good news for Siemens.
-- MDT
5/31/2007
The comments from Schelsky, which appeared Thursday in a German magazine, would seem to add credence to the lawsuit brought against Siemens by rival union IG Metall which alleged just this type of shenanigans. Schelsky, who has been in police custody since February, reportedly received more than $45 million dollars from Siemens.
The Siemens board member who made the payments to Schelsky, Johannes Feldmayer, was also arrested on charges of conspiracy but has since been released on bond. His ultimate fate, as well as Schelsky's is still unknown, but none of this is particularly good news for Siemens.
-- MDT
Labels: AUB, bribery, IG Metall, Johannes Feldmayer, Siemens, Wilhelm Schelsky
Siemens Bribery Investigation Turns To China 5/22/2007
German Companies On Notice - Scandal may Not Stop at Siemens
Andrew Murray-Watson, Business Editor at The Independent muses about the Siemens bribery scandal. Not only do the escalating issues at Siemens tarnish the country's reputation for transparency, AMW argues, they may also signal a sea change for how business is done in Germany.
-- MDT
5/21/2007
-- MDT
Labels: bribery, corporate scandal, Germany, Siemens
Siemens Pulls Trigger on new CEO
And their pick? Peter Loscher, who comes out of the pharmaceutical industry. Löscher is currently the president of Global Human Health at Merck. His appointment makes him the first Siemens CEO to have not held a prior position with the company.
Read more about Loscher at the IHT.
-- MDT
5/17/2007
Read more about Loscher at the IHT.
-- MDT
Labels: bribery, CEOs, corporate scandal, Siemens
First Sentences Come Down in "Bottomless" Siemens Corruption Probe
"I have the impression that we are looking into a bottomless pit."
-- Siemens board member Berthold Huber to Der Spiegel
Siemens insiders not showing a lot of optimism these days. While the company's stock price had remained relatively stable throughout the bribery scandal that has subsumed Siemens over the last few months, the bad news just keeps coming and coming.
In keeping with that theme, two former employees from Siemens power generation division, Andreas Kley and Horst Vigener were recently convicted on bribery-related charges by a German court. These two names popped up back in mid-March, when they copped to bribery allegations. Then and now Kley and Vigener have denied broader company involvement and have received suspended sentences. Siemens plans to appeal the conviction.
-- MDT
5/09/2007
-- Siemens board member Berthold Huber to Der Spiegel
Siemens insiders not showing a lot of optimism these days. While the company's stock price had remained relatively stable throughout the bribery scandal that has subsumed Siemens over the last few months, the bad news just keeps coming and coming.
In keeping with that theme, two former employees from Siemens power generation division, Andreas Kley and Horst Vigener were recently convicted on bribery-related charges by a German court. These two names popped up back in mid-March, when they copped to bribery allegations. Then and now Kley and Vigener have denied broader company involvement and have received suspended sentences. Siemens plans to appeal the conviction.
-- MDT
Labels: Andreas Kley, bribery, Horst Vigener, Siemens
Siemens Bribery Pit To Get Deeper According to Debevoise & Plimpton Internal Investigation
Details at The Ethical Corporation... For further details on Siemans bribery as business strategy, check out the FT.
Meanwhile, a Frankfurt prosecutor has called for a 97 million euro fine for just one aspect of Siemen's bribery travails, that of the company's power generation unit. Frankfurt authorities are also angling for jail time for some of the smaller fish involved in the matter.
-- MDT
5/04/2007
Meanwhile, a Frankfurt prosecutor has called for a 97 million euro fine for just one aspect of Siemen's bribery travails, that of the company's power generation unit. Frankfurt authorities are also angling for jail time for some of the smaller fish involved in the matter.
-- MDT
Vietnamese Businessman Named as recipient of Siemens Bribes
According to a KPMG report, the details of which were obtained by Der Spiegel, a Mr. Le Tan Cuong received an unusual payment from Siemens in the amount of 241,515 euros in March of 2006. it is unclear as yet whether this is the same Le Tan Cuong who serves in Vietnam's Department for Managing Industrial and Exporting Processing Zones under the Ministry of Planning and Investment. So far Vietnamese officials have indicated that the existence of the two Cuongs is merely coincidental.
-- MDT
4/26/2007
-- MDT
Labels: bribery, Le Tan Cuong, Siemens, Vietnam
Kleinfeld Resigns (or Was it A Coup?)
Klaus Kleinfeld has announced that he will resign from Siemens, a result of the explosive bribery investigation that continues to dog the manufacturing firm (if not the company's stock price). Kleinfled had not, as yet, been implicated in any wrong doing, but he did have his enemies on the board Siemens board, who have apparently used this as an opportunity to force his ouster.
At least that's the story the FT is tellin'.
-- MDT
4/24/2007
At least that's the story the FT is tellin'.
-- MDT
Labels: bribery, corporate scandal, Klaus Kleinfeld, Siemens
Siemens Executive Shuffle... Kleinfeld on his last legs?
While a Siemens internal investigation found no evidence implicating CEO Klaus Kleinfeld in the recent bribery scandal, there is apparently still great pressure for him to step down. The German Financial Times has reported that Siemens' supervisory board is pushing for a new chief executive to replace Kleinfeld. Deutsche Bank CEO Josef Ackerman, a key member of the Siemens board is apparently spearheading the push against Kleinfeld.
-- MDT
4/20/2007
-- MDT
Labels: bribery, corporate scandal, Josef Ackerman, Klaus Kleinfeld, Siemens
Board Chair Resigns at Siemens
Heinrich von Pierer, supervisory board chairman of Siemens, is expected to resign in the next few days in response to mounting scandal at the troubled German conglomerate.
The FT has further details on von Pierer and his decision to resign.
-- MDT
4/13/2007
The FT has further details on von Pierer and his decision to resign.
-- MDT
Labels: bribery, corporate scandal, Heinrich von Pierer, Siemens
How to End Bribery in Business
The answer, from the Financial Times OPED page? Political will.
Yeah, I know. Good luck with that... Still, the column is a good read, and not one likely to make you any less cynical. The FT is not exactly Pollyanna, after all.
-- MDT
4/06/2007
Yeah, I know. Good luck with that... Still, the column is a good read, and not one likely to make you any less cynical. The FT is not exactly Pollyanna, after all.
-- MDT
Labels: BAE, bribery, commentary, EU, Siemens
Deloitte & Siemens, Another Scandal in the Making?
From the sharp eye (and pen) of RE: The Auditors... Francine McKenna catches a potential issue on the rise.
Debvoise & Plimpton is the law firm retained by Siemens' audit committee to aid the company in their internal investigation of the bribery allegations. D&P will be using number crunchers from Deloitte Touche Tomahtsu to assist.
However, Deloitte and Siemens have a business relationship in implementing software for third party clients. Deloitte touts these industry alliances (with both Siemens Energy & Automation, Inc. and Siemens Medical Solutions USA, Inc) right here.
Now Deloitte is a big place, but given their relationship with Siemens, should they really be the guys reviewing the books? And when will someone call them on it?
Hop on over to RE: The Auditors to read more of Ms. McKenna's comments on the subject.
-- MDT
4/05/2007
Debvoise & Plimpton is the law firm retained by Siemens' audit committee to aid the company in their internal investigation of the bribery allegations. D&P will be using number crunchers from Deloitte Touche Tomahtsu to assist.
However, Deloitte and Siemens have a business relationship in implementing software for third party clients. Deloitte touts these industry alliances (with both Siemens Energy & Automation, Inc. and Siemens Medical Solutions USA, Inc) right here.
Now Deloitte is a big place, but given their relationship with Siemens, should they really be the guys reviewing the books? And when will someone call them on it?
Hop on over to RE: The Auditors to read more of Ms. McKenna's comments on the subject.
-- MDT
Labels: Debvoise and Plimpton, Deloitte, Siemans Medical, Siemens
Siemens' Feldmayer Released 4/04/2007
Siemens Facing Lawsuit on Union Payoffs
The scandal that felled Johannes Feldmayer has also brought about a new lawsuit against the beleaguered Siemens. Beset by scandal and a high-profile international investigation into its business practices, Siemens can't seem to get (and probably doesn't deserve) a break.
In light of the cozy relationship that has emerged between Siemens and German union AUB, rival tradeunion IG Metall has filed suit against Siemens, alleging that the company sought to undermine IG Metall's status via covert financing of AUB, which is considered to be a much more employer friendly organization.
-- MDT
4/02/2007
In light of the cozy relationship that has emerged between Siemens and German union AUB, rival tradeunion IG Metall has filed suit against Siemens, alleging that the company sought to undermine IG Metall's status via covert financing of AUB, which is considered to be a much more employer friendly organization.
-- MDT
Labels: AUB, bribery, IG Metall, Johannes Feldmayer, Siemens
Siemens Investigation Expands, Plot Thickens
As the Sieman's bribery scandal (and "Operation Amigo") creeps toward the company's C-Suite, the International Herald Tribune explores the "risks and rewards" of investing in Germany.
Meanwhile, not exactly helping things, certain Siemens employees under arrest have admitted to offering bribes to Russian officials.
Also be sure to check out the Wharton Business School's take on all this: Hit by an Earthquake: How Scandals Have Led to a Crisis in German Corporate Governance
-- MDT
3/30/2007
Meanwhile, not exactly helping things, certain Siemens employees under arrest have admitted to offering bribes to Russian officials.
Also be sure to check out the Wharton Business School's take on all this: Hit by an Earthquake: How Scandals Have Led to a Crisis in German Corporate Governance
-- MDT
Labels: bribery, investigation, Russia, Siemens, Wharton
Another Search and More Arrests Coming in Siemens Bribery Probe
So say authorities in Munich, who've done another pass through Siemens offices. Two additional warrants were subsequently issued...
At the time of this writing the names on those warrants are unknown, but Siemens did suspend another employee yesterday (following their suspension of Johannes Feldmayer on Tuesday) and it is assumed that person's name is one one of the warrants. The second warrant is apparently in the name of a former employee who left Siemens late last year.
Could it be that Siemens' former finance chief and a former member of its supervisory board, Karl-Hermann Baumann might be the former employee of interest to authorities? It is known that Baumann has been suspected for some time of having connections to the AUB bribery investigation that felled Mr. Feldmayer. Baumann is already under suspicion for breach of trust in connection with the AUD matter.
Meanwhile, back at Siemens HQ, its sweaty brows and clammy palms all around... What else can you expect when three out of four of your recent candidates for CEO are currently under investigation by highly motivated prosecutors. It tends to case a pall over the company picnic.
-- MDT
3/28/2007
At the time of this writing the names on those warrants are unknown, but Siemens did suspend another employee yesterday (following their suspension of Johannes Feldmayer on Tuesday) and it is assumed that person's name is one one of the warrants. The second warrant is apparently in the name of a former employee who left Siemens late last year.
Could it be that Siemens' former finance chief and a former member of its supervisory board, Karl-Hermann Baumann might be the former employee of interest to authorities? It is known that Baumann has been suspected for some time of having connections to the AUB bribery investigation that felled Mr. Feldmayer. Baumann is already under suspicion for breach of trust in connection with the AUD matter.
Meanwhile, back at Siemens HQ, its sweaty brows and clammy palms all around... What else can you expect when three out of four of your recent candidates for CEO are currently under investigation by highly motivated prosecutors. It tends to case a pall over the company picnic.
-- MDT
Labels: bribery, investigation, Johannes Feldmayer, Karl-Hermann Baumann, Siemens
Siemens Board Member Arrested
Johannes Feldmayer, Siemens executive board member, was detained on Tuesday in connection with a probe of bribery accusations concerning the German workers' association AUB (AUB's president has already been cooling his heels in stir for the last month). For more on how the Fledmayer arrest fits into the overal Siemens bribery scandal, check out this article from The Scotsman.
-- MDT
3/19/2007
-- MDT
Labels: AUB, bribery, Johannes Feldmayer, Siemens
Siemens Shockwaves.... German Companies Tighten Up
Via the FT's Alphaville...but if you want the full story, you'll have to subscribe.
Also, in case you missed it, as I did, two Siemens managers have admitted to making payments - not bribes, mind you (apparently there is a distinction in the original German).
Horst Vigener and Andreas Kley, the managers in question, have pointed out, in their defense, that German law did not at the time the payments took place, only prohibited the bribing of public officials. The Italian utility, whose executives received their payments, had been thoroughly privatized.
Umm...touche...
Still, the two men have been charged with Breach of Trust, which indicates the misuse of institutional funds, if not personal enrichment and the Siemens trial has followed their web of bribes around the world - from Italy to Dubai, Abu Dhabi and Monaco.
For further details on Vigener and Kley and the ongoing consequences for Siemens, check out this article from the IHT.
In semi-related news, senior VP and chief financial officer Eric Yu of former Siemens partner, BenQ has been detained by authorities regarding insider trading allegations. Yu and 13 other BenQ execs are thought to have been involved in the scheme. More on the BenQ angle, here.
--MDT
2/09/2007
Also, in case you missed it, as I did, two Siemens managers have admitted to making payments - not bribes, mind you (apparently there is a distinction in the original German).
Horst Vigener and Andreas Kley, the managers in question, have pointed out, in their defense, that German law did not at the time the payments took place, only prohibited the bribing of public officials. The Italian utility, whose executives received their payments, had been thoroughly privatized.
Umm...touche...
Still, the two men have been charged with Breach of Trust, which indicates the misuse of institutional funds, if not personal enrichment and the Siemens trial has followed their web of bribes around the world - from Italy to Dubai, Abu Dhabi and Monaco.
For further details on Vigener and Kley and the ongoing consequences for Siemens, check out this article from the IHT.
In semi-related news, senior VP and chief financial officer Eric Yu of former Siemens partner, BenQ has been detained by authorities regarding insider trading allegations. Yu and 13 other BenQ execs are thought to have been involved in the scheme. More on the BenQ angle, here.
--MDT
Labels: Andreas Kley, BenQ, bribery, Horst Vigener, Siemens
Siemens Division Pleads Guilty in Fraud
No, not THAT Siemens division. In this instance we're talking about Siemens Medical Solutions, USA, which has of late been embroiled in its own share of scandal. The Siemens unit has agreed, as a part of a plea deal, to pay $2.5 million in fines and restitution in penance for shady dealings surrounding Siemens Medical's acquisition of contract to supply radiological equipment to Illinois' John H. Stroger Jr. Hospital. Details on Siemen's scam here.
-- MDT
2/05/2007
-- MDT
Labels: Fraud, minority owned company, Siemans Medical, Siemens
DOJ Probes Siemens
Joining the SEC on Siemen's crowded legal dance card is the U.S. Department of Justice. What the DOJ is looking for is unknown as is how deeply they're planning to probe. But it ain't good news, that's for sure.
-- MDT
1/30/2007
-- MDT
Labels: bribery, Department of Justice, SEC, Siemens
New Audit Shows Depth of Corruption at Siemens
How deep does the scandal go? Like, really deep would be the answer. A sample from the Spiegel article:
-- MDT
1/24/2007
....the company had to wire €418 million in fines to the European Commission last week because, according to EU authorities, Siemens was a ring leader in a cartel of companies selling power station equipment -- dividing up the market among themselves. Though Siemens is planning to fight the fine, it took a huge chunk out of the company's first quarter profits.More here.
-- MDT
Labels: audit, bribery, corruption, Siemens
Siemens Duo Deny Connection to Bribery Probe
Siemens Chief Financial Officer Joe Kaeser as well as executive board member Rudi Lamprecht are denying newspaper reports that they are connected with the ongoing bribery probe at the international conglomerate. Siemens itself has also released a statement indicating that neither Kaseser or Lamprecht have been contacted by prosecutors at this time.
Several other past and present high-ranking Siemen's execs have been implicated in the investigation, including, most notably Thomas Ganswindt and Heinz-Joachim Neubuerger .
Siemens shareholders will be meeting on Thursday in Munich. Look out for the fireworks.
-- MDT
1/16/2007
Several other past and present high-ranking Siemen's execs have been implicated in the investigation, including, most notably Thomas Ganswindt and Heinz-Joachim Neubuerger .
Siemens shareholders will be meeting on Thursday in Munich. Look out for the fireworks.
-- MDT
Labels: bribery, Heinz-Joachim Neubürger, Joe Kaeser, Rudi Lamprecht, Siemens, Thomas Ganswindt
KPMG and Siemens, A Match Made in Prison?
Francine McKenna's RE: THE AUDITORS traces the relationship between KPMG and Siemens in recent news coverage of the Siemens bribery scandal. Interesting reading and a quality blog to add to the Daily Caveat links list. Give it a look...
-- MDT
-- MDT
1 Comments.
Thanks for the link! I appreciate the extra readers.
Sincerely, fm at ReTheAuditors
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Former Siemens CFO a Suspect in Bribery Investigation
Heinz-Joachim Neubürger left Siemens in April of '06 when it became clear he was being passed over for the chief executive spot that went to Klaus Kleinfeld. Neubürger went in voluntarialy for questioning by Munich authorities this Tuesday, at which time he was informed that he was a suspect.
The former CFO was apparently fingered by Michael Kutschenreuter, the former Siemens finance director of Siemen's telecom division. Kutschenreuter reportedly told Munich prosecutors that Neubürger was aware of some of the bribery shenenigans but did nothing to stop the illegal activities.
For more on Neubürger's fate, check out the FT at MSNBC.
-- MDT
1/03/2007
The former CFO was apparently fingered by Michael Kutschenreuter, the former Siemens finance director of Siemen's telecom division. Kutschenreuter reportedly told Munich prosecutors that Neubürger was aware of some of the bribery shenenigans but did nothing to stop the illegal activities.
For more on Neubürger's fate, check out the FT at MSNBC.
-- MDT
Labels: bribery, Heinz-Joachim Neubürger, Michael Kutschenreuter, Siemens
Siemens (Iraq) Bribery Probe Stirring
As if the firm needed more bad news, Siemens is apparently cooperating with the UN regarding bribes that may have been paid for contracts in Saddam Hussein's Iraq. The Daily Caveat had previously called attention (back in August '05) to the SEC's look at similar activities involving DaimerChrysler. Siemens and DaimlerChrysler are in good company, however. A 2005 UN report that identified some 63 German companies which paid bribes to Iraq under Hussein.
And no, smartypants, Halliburton is not a German company. Besides, that was Iran they were dealing with.
-- MDT
12/22/2006
And no, smartypants, Halliburton is not a German company. Besides, that was Iran they were dealing with.
-- MDT
Labels: bribery, DaimlerChrysler, Siemens, UN
Six Siemens Bribery Probe Suspects Released
Released, that is, after "providing evidence that supports the allegations against them."
The real questions is, who else they might have provided evidence against. For those keeping score, Thomas Ganswindt, the former head of Siemens telecommunications equipment unit was among those released. It is unclear whether any or all of the six will face charges and they remain under investigation.
More here.
-- MDT
12/20/2006
The real questions is, who else they might have provided evidence against. For those keeping score, Thomas Ganswindt, the former head of Siemens telecommunications equipment unit was among those released. It is unclear whether any or all of the six will face charges and they remain under investigation.
More here.
-- MDT
Labels: bribery, Siemens, Thomas Ganswindt
More on Thomas Ganswindt, the Former Siemens Board Member Arrested in the Ongoing Bribery Probe 12/17/2006
Siemens Aware Bribery Probe Brewing Since '04?
Looks like the trail in the Siemens bribery probe goes back quite a long way. According to recent filings with the SEC, (link goes to EDGAR - search Siemens, form 20-F, 12/11/06) the company was been aware for more than a year of frozen accounts and seized assets amongst the firm's former employees. The question becomes then, what was Siemens planning to do about all this up until the point that international law enforcement officers broke down the front door?
Read all about it, here.
-- MDT
12/14/2006
Read all about it, here.
-- MDT
Senior Ex-Siemens Official Held in Bribery Probe Has a Name
Thomas Ganswindt - the former head of Siemens telecom equipment division. Before his dependence on the insistent hospitality of European law enforcement, Ganswindt reported directly to Siemen's chief exec Klaus Kleinfeld and served on Siemen's central executive board. Ganswindt left Seimans back in September and had most recently served as CEO of Elster Group based out of Luxembourg. Further details on Ganswindt and the ongling Siemens bribery investigation can be found here.
-- MDT
-- MDT
Labels: bribery, Elster Group, Klaus Kleinfeld, Siemens, Thomas Ganswindt
Siemens Bribery Probe Expands
The hole is getting deeper and deeper on this one.
-- MDT
11/26/2006
-- MDT
Labels: bribery, embezzlement, investigation, Siemens
Siemens Creates Task Force in Response To Bribery Probe
Only a few days ago international authorities raided various Siemens offices as well as private homes in an effort to find the source of the alleged government bribes as well as the location of the hundreds of millions in Siemens funds, diverted to off-book accounts in order to fund the bribes. A whistleblower initially tipped of Swiss authorities and the ensuing raids saw six Siemens employees arrested and some 30,000 documents seized. Siemens has thus far denied corporate knowledge or complicity in the illegal acts. The firm has announced an internal task force that will be conducting an internal investigation, dovetailing with law enforcement efforts.
-- MDT
-- MDT
