Internal Siemens probe uncovers widespread corruption: company

FRANKFURT (AFP) — An internal probe at German industrial group Siemens has found that almost all its sectors of activity were subject to active corruption, a company statement said Tuesday.

The international law firm of Debevoise & Plimpton "has found evidence in each of the examined groups and in various countries indicating that domestic as well as foreign compliance regulations have been violated," it said.

"The violations in question reflect not only outright incidents of corruption, but, in many cases, violations of regulations pertaining to internal controls," the enquiry found.

In addition to the Com, or telecommunications division where a corruption scandal first surfaced at Siemens, lawyers looked into its activities in energy production and distribution, transportation and medical equipment.

Siemens' supervisory board said in the same statement that it had "expressed its full trust in the managing board" and that "it is too early to make a decision on specific consequences in relation to individuals from the circle of former board members."

That comment referred to possible claims for damages.

But the group's Compliance Committee would be "instructed to examine and evaluate claims against former members of the managing board," it added.

It thus remained open whether former Siemens boss Heinrich von Pierer would be pressed for damages by Siemens, or whether he might have to face judicial proceedings.

Siemens has acknowledged the existence of special funds worth 1.3 billion euros (two billion dollars) used to obtain foreign contracts, and agreed in October to pay a fine of 201 million euros to put an end to some German legal proceedings.