Under Fire Siemens Get Heavy Fine

Technology company Siemens has been fined over allegations of bribery and the long running mismanagement scandal within its telecomms division.

The fine imposed by German authorities came to the tune of 201 million euros after a so-called ‘systematic’ approach to bribery amongst senior management officials prompted widespread investigation into the business practices of the world’s biggest engineering group.

It is expected that the ruling delivered in Munich will be but the first in a long line of similar pending cases, which could end up costing Siemens hundreds of billions of dollars over the next few years.

Siemens has also been under fire for mismanagement of accounts, particularly in relation to taxation. It has transpired that somewhere in the region of 450 million euros in erroneously deducted payments had been included within the group accounts, which it is now being forced to charge to tax.

It is thought that the company will not appeal the decision against their business practices, and those high profile employees involved in the scandal have all previously been removed from office.

Siemens is also fully engaged in its own investigations into the matter, which many have described as a ‘culture’ of accepting illegal payments within the upper echelons of the company’s management structure. It is suggested that the findings of these investigations will be made available later this year.

From a PR point of view the Siemens brand has been substantially damaged by the saga, hence the decision to waive any interest of appeal may be in the best interests of the company and the brand in the long run.

Siemnes is also under investigation in the US, Liechtenstein, Switzerland and Italy for similar illegal payment allegations, which could add further weight to their existing fines should it uncover similar procedural irregularities.

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