Cash for favors
August 28, 2009
Munich-based electronics and industrial giant Siemens announced on Friday that its former top managers Klaus Wucherer, Rudi Lamprecht und Edward G. Krubasik are prepared to pay the firm 500,000 euros ($718,000) apiece in compensation for their roles in a corruption scandal.
Government prosecutors have reportedly also closed legal proceedings against the men, who had been under investigation for breach of trust.
The out-of-court agreement still has be approved by the company's supervisory board and shareholders. At the same time, Siemens said it is also negotiating with former board chairman Heinrich von Pierer and ex-CEO Klaus Kleinfeld, who face possible lawsuits for failing to stop illegal corruption practices at the company. Both men resigned their posts in 2007 and deny any wrongdoing.
Last December, Siemens was fined a record one billion euros ($1.4 billion) by German and US authorities after pleading guilty to corruption charges. The conglomerate admitted that its executives had bribed their way to multi-million dollar contracts for years.
The World Bank has further ruled that the German industrial giant must pay 100 million dollars into a global anti-corruption fund. Siemens has agreed to pay the fine in installments over the next 15 years.
Siemens employs 430,000 people worldwide.
nrt/afp/Reuters
Editor: Rick Demarest