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Siemens ties up bribery scandal mess

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Siemens ties up bribery scandal mess

Six former directors at Germany's Siemens will pay damages related to a bribery scandal that embarrassed the firm in 2006. They include two former chief executives, one of whom, Klaus Kleinfeld, now heads up the world’s leading aluminium producer, Alcoa. Heinrich von Pierer will pay Siemens $7.5 million, while Kleinfeld will pay $3 million, after they were accused of ignoring the fact that Siemens had paid huge kickbacks in places such as Iraq, Venezuela, Israel and Russia. The company has already paid $2.4 billion in fines to settle legal actions in Europe and the US that were related to the bribes, as well as $1.2 billion in legal fees. Two former directors have failed to reach an agreement with the firm, and will likely face prosecution before the company's annual meeting early next year. Siemens has settled six of 11 lawsuits against staff it accused of supervisory failings related to the scandal. No doubt Kleinfeld will continue to run Alcoa. Read more: BBC, The New York Times


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