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

Labels: bribery, DaimlerChrysler, Siemens, UN

The Daily Caveat has been watching closely the emerging bribery scandal involving DaimlerChrysler, the Justice Department, the SEC and now the United Nations. The Evening Standard featured an article today providing a bit more detail on exactly what illegalities have been alledged thusfar.

Via ThisIsMoney.co.uk:

Daimler faces SEC probe over Iraq trucks

by Allan Hall
The Evening Standard
August 10, 2005

[The SEC]...is probing the sale of DaimlerChrysler Actros trucks in connection with the UN's oilforfood scandal, it was claimed today. According to Stern magazine, in 2002 Iraq had ordered 150 of the vehicles, 50 of which were delivered via Moscow. The Daimler branch in Russia sold them to the Russian Engineering Company, which in turn sold them to the Iraqi state-controlled GAMCO....

...Under investigation is whether DaimlerChrysler deliveries to Iraq under Saddam Hussein violated US anti-corruption laws. The SEC has demanded files and bank documents from the carmaker. The UN's oil-for-food programme, designedto allow Iraqis access to food despite strict UN sanctions, was in operation from 1996 to 2003. It has since come under heavy fire for widespread corruption in its ranks. The accusations range from money-laundering to kickbacks and conspiracy.

Yesterday, a leading figure in the programme, Alexander Yakovlev, admitted to money-laundering and other charges. An independent panel led by Paul Volcker, former US Federal Reserve Bank chair, has also accused the former head of the programme, Benon Sevan, of receiving kickbacks.

All sales within the framework of the oil-for-food programme were first approved by the UN. Then Geneva-based company Cotecna arranged shipment and payment. A German businessman told Stern that Cotecna was a 'bottleneck' in the transactions and companies often had to stand in line waiting for execution of their contracts. Reportedly, companies could 'buy' their way to the front of the line.

The SEC wants to know if DaimlerChrysler might have also paid a bribe to move up to the head of the queue. Since DaimlerChrysler is listed on the New York Stock Exchange, the SEC can investigate the carmaker even though it is a German company...

The full article (which originally appeared in the Evening Standard) can be found here.

-- MDT

Labels: bribery, DaimlerChrysler, Department of Justice, money laundering, UN