Siemens Raided on Suspicions of Embezzlement, Bribery

Reports have shown that police and prosecutors have raided Siemens AG in Munich and Erlangen, Germany. The raid is a part of an investigation into acts of fraud suspected at the company's fixed networks business. Siemens AG, the world's largest electronics company was raided by approximately 200 police, prosecutors and tax inspectors at around 30 locations, some of them private homes.

Police have already arrested five Siemens employees as part of an investigation into embezzlement and possible bribery at the company.

A total of ten Siemens employees, which included top executives Michael Kutschenreuter and Andy Mattes, and two other non-Siemens workers are still undergoing investigation for involvement in €20 million (US$25.5 million) to front companies and bank accounts in Switzerland and Liechtenstein, according to German publication Spiegel.

"Whether and to which degree these funds were used for paying bribes must still to be investigated," said Munich senior prosecutor Christian Schmidt-Sommerfeld. "Three of the suspects have already made comprehensive statements."

Reports say that company executives created a secret slush fund with the purpose of paying bribes to secure contracts, customers and design-wins. The tactic, though illegal, is not uncommon in tech companies and may lead the way for several other investigations of the same manner.

News source: DailyTech

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