A report in the latest edition of German business magazine WirtschaftsWoche,has caused a global scandal that led Siemens to admit that the United States Securities and Exchange Commission and the Department of Justice are now investigating allegations of bribery that now surround the company.
In the article, an unnamed Siemens manager commented that more than 50
per cent of Siemens business in China, its most important growth
region, was allegedly tainted by bribery. The comments follow moves by
the company to tighten its internal governance and controls.
The company has denied the allegations. "The statement that more than
half of the China business is corrupt is not admissible," a spokesman
said.
The anonymous magazine source added that 90 per cent of Siemens'
business in China is supposedly conduced via intermediaries, which are
said to be controlled by powerful regional managers of Siemens in
different Chinese provinces.
Siemens launched a broad-ranging investigation into fraud allegations
last year, focusing on alleged suspicious transactions in various
parts of the company''s business dating back several years.
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