         |
Siemens, a BWSC subcontractor, barred from World Bank finance German industrial giant Siemens – listed as a BWSC subcontractor that will provide the switchgear for the Delimara power station extension – has acknowledged ‘past misconduct in its global business’ and is debarred from any business related to the World Bank group. Siemens AG and its consolidated subsidiaries and affiliates reached an agreement in 2009 with the World Bank Group to voluntarily preclude itself for two years until 31 December, 2010, from projects financed by the World Bank and its five institutional lenders, whether as a bidder, subcontractor, manufacturer, supplier or implementing agency. According to a World Bank Group document that seals the agreement reached with the Germa firm, Siemens “acknowledged its responsibilities” over widespread corruption on World Bank funds earmarked to set up a major power plant in Pakistan. In December 2008, Siemens had agreed to pay US$1.4 billion to US and German authorities to settle the corruption scandal, acknowledging the legal problems could have proved to be far more costly had it gone to court. Siemens had in fact pleaded guilty to corruption charges and agreed to pay US$450 million, and also agreed to a US$350 million settlement with the US securities and Exchange Commission (SEC). The scandal surfaced following secret meetings held in a luxury Madrid hotel between World Bank investigators and an unnamed, former Siemens engineer. According to the witness, Siemens is alleged to have artificially increased the costs for the construction of a power plant in the Punjab region of Pakistan. The information provided by the engineer reportedly “electrified” World Bank investigators. US authorities said Siemens had used slush funds, off-book accounting and delivered suitcases full of cash to bribe officials to secure contracts in Argentina, Bangladesh, Iraq and Venezuela. Acting US Assistant Attorney General Matthew Freidrich had actually commented that: “for much of its operations across the globe, bribery was nothing less than standard operating procedure for Siemens.” Linda Chatman Thomsen, director of the enforcement division at the Securities and Exchange Commission in the US stressed that: “this pattern of bribery by Siemens was unprecedented in scale and geographic reach,” adding that the company had sought to bribe officials in Asia, Africa, Europe, the Middle East and the Americas. Any comments? |
 |
|
Copyright © MediaToday Co. Ltd, Vjal ir-Rihan, San Gwann SGN 9016, Malta, Europe
Managing editor Saviour Balzan | Tel. ++356 21382741 | Fax: ++356 21385075 | Email
Managing editor Saviour Balzan | Tel. ++356 21382741 | Fax: ++356 21385075 | Email