Siemens Reserves $1.3 Billion to Settle Corruption Charges

The German conglomerate Siemens has set aside $1.3 billion to settle an ongoing corruption investigation according to CFO.com: Siemens Reserves $1.3 Billion for Probe.

Back in April, international law firm Debevoise & Plimpton LLP, hired by Siemens to investigate bribery and corruption charges dating back to the late 1990s, found evidence of violations of domestic and foreign compliance regulations. Its report said many of the violations were due both to corruption and violations of regulations that govern internal controls and the accuracy of documentation.That report, delivered to the German conglomerate’s compliance committee, covered business transactions between 1999 and 2006, and management conduct related to those practices

The Dangers of Bribery

The downfall of local politician can cast a shadow of filth across your company. Here in Boston, state Senator Diane Wilkerson was arrested for public corruption. In an editorial in the Boston Globe, the newspaper noted that Wilkerson’s arrest raised suspicions about real estate developments in her district that she aggressively supported: The Grimy Side of Politics.

According to Azid Mohammed, Wilkerson pressured local real estate developers: Developer Reportedly Worried Aboud Demands made By Senator. In Wilkerson arrest sting, an FBI agent was posing as a real estate developer offering bribes to Wilkerson if she would help the agent win ownership of state owned real estate.

The danger of bribery is not only that you get caught, but that the official gets caught or someone else in the chain gets caught and brings you down as part of a larger problem.

The Affidavit in support of the criminal complaint against Wilkerson.