Six executives from Siemens have been charged in the US with conspiring to bribe Argentinian officials with $100 million, three years after the company paid out $1.6 billion to settle claims that it sought to win contracts overseas by paying bribes.The executives have been charged in separate investigations by the Justice Department and the Securities and Exchange Commission. The Justice Department's Assistant Attorney General Lanny Breuer said that the “allegations in this indictment reflect a stunning level of deception and corruption”. As well as breaching the Foreign Corrupt Practices Act, the allegations include money laundering and conspiracy to commit wire fraud.
The alleged scheme began in the late 1990s in an attempt to win a $1 billion contract with the Argentine government. Siemens officials set up a series of shell companies and fake contracts to hide the bribes to Argentine officials.
Despite the allegations, and the after-effects of the 2008 settlement, the company appears be on track to increase its US business. According to an investigation by the Wall Street Journal the company has made significant progress in building up both business and relationships in Washington. Last year, the firm hired senior Democratic operative Camille Johnston as US corporate affairs chief, which has opened even more doors.
Whether or not the new investigation damages the company's US business remains to be seen: given its growing weight as a major player in America, it seems unlikely.
Sources: Washington Post, Wall Street Journal
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