Editing Siemens (section)

=== 2005 and continuing: worldwide bribery scandal ===
Beginning in 2005, Siemens became embroiled in a multi-national [[bribery]] scandal.<ref>{{Cite news |date=20 May 2007 |title=Bloomberg.com |url=https://www.bloomberg.com/apps/news?pid=20601100&sid=agxq4nZkE.lc |access-date=12 January 2008}}</ref> Among the various incidents was the [[Siemens Greek bribery scandal]], where the company was accused of deals with Greek government officials during the [[2004 Summer Olympics]]. This case, along with others, triggered legal investigations in Germany, initiated by prosecutors in Italy, Liechtenstein, and Switzerland, and later followed by an American investigation in 2006 due to the company's activities while listed on US stock exchanges.<ref name="NYThow">{{cite news |last1=Schubert |first1=Siri |last2=Miller |first2=T. Christian |date=20 December 2008 |title=At Siemens, Bribery Was Just a Line Item |work=The New York Times |url=https://www.nytimes.com/2008/12/21/business/worldbusiness/21siemens.html?mcubz=2}}</ref>

Investigations found that Siemens had a pattern of bribing officials to secure contracts, with the company spending approximately $1.3 billion on bribes across several countries, and maintaining separate accounting records to conceal this. Following the investigations, Siemens settled in December 2008, paying a combined total of approximately $1.6 billion to the US and Germany in what was, at the time, the largest bribery fine in history.<ref name="NYThow" /> In addition, the company was required to invest $1 billion in developing and maintaining new internal compliance procedures. Siemens admitted to violating the accounting provisions of the [[Foreign Corrupt Practices Act]], while its Bangladesh and Venezuela subsidiaries pleaded guilty to paying bribes.<ref name="WaPo20082">{{cite news |last1=O'Reilly |first1=Cary |last2=Matussek |first2=Karin |date=16 December 2008 |title=Siemens to Pay $1.6 Billion to Settle Bribery Cases |newspaper=The Washington Post |url=https://www.washingtonpost.com/wp-dyn/content/article/2008/12/15/AR2008121502926.html}}</ref>

Despite initial expectations of a fine as high as $5 billion, the final amount was significantly less, in part due to Siemens's cooperation with the investigators, the upcoming change in the US administration, and Siemens's role as a US [[Arms industry|military contractor]].<ref name="Guardian20082">{{cite news |last1=Gow |first1=David |date=15 December 2008 |title=Record US fine ends Siemens bribery scandal |work=The Guardian |url=https://www.theguardian.com/business/2008/dec/16/regulation-siemens-scandal-bribery}}</ref> The payments included $450 million in fines and penalties and a forfeiture of $350 million in profits in the US. Siemens also revamped its [[Regulatory compliance|compliance]] systems, appointing [[Peter Y. Solmssen]], a US lawyer, as an independent director in charge of compliance and accepting oversight from [[Theo Waigel]], a former German finance minister. Siemens implemented new [[anti-corruption]] policies, including a comprehensive anti-corruption handbook, online tools for due diligence and compliance, a confidential communications channel for employees, and a corporate disciplinary committee. This process involved hiring approximately 500 full-time compliance personnel worldwide.<ref>{{cite web |date=2 May 2013 |title=United States of America v. Siemens Aktiengesellschaft |url=https://www.justice.gov/sites/default/files/criminal-fraud/legacy/2013/05/02/12-12-08siemensvenez-sent.pdf |publisher=United States District Court for the District of Columbia}} {{PD-notice}}</ref>

Siemens's bribery culture was not new; it was highlighted as far back as 1914 when both Siemens and Vickers were involved in a scandal over [[Siemens scandal|bribes paid to Japanese naval authorities]].<ref>{{cite book |last=Sims |first=Richard |title=Japanese Political History Since the Meiji Renovation 1868–2000 |publisher=Palgrave Macmillan |year=2001 |isbn=0-312-23915-7 |page=113}}</ref> The company resorted to bribery as it sought to expand its business in the developing world after World War II. Up until 1999, bribes were a [[Tax deduction|tax-deductible]] business expense in Germany, with no penalties for bribing foreign officials. However, with the implementation of the 1999 [[OECD Anti-Bribery Convention]], Siemens started using off-shore accounts to hide its bribery.

During the investigation, key player Reinhard Siekaczek, a mid-level executive in the telecommunications unit, provided critical evidence. He disclosed that he had managed an annual global bribery budget of $40 to $50 million and provided information about the company's 2,700 worldwide contractors, who were typically used to channel money to government officials. Notable instances of bribery included substantial payments in Argentina, Israel, Venezuela, China, Nigeria, and Russia to secure large contracts.<ref name="NYThow" />

The investigation resulted in multiple prosecutions and settlements with various governments, as well as legal action against Siemens employees and those who received bribes. Noteworthy cases include the conviction of two former executives in 2007 for bribing Italian energy company [[Enel]], a settlement with the Greek government in 2012 for 330 million euros over the Greek bribery scandal, and a guilty plea in 2014 from former Siemens executive Andres Truppel for channeling nearly $100 million in bribes to Argentine government officials.<ref name="timesofisrael.com2">{{cite web |title=Ex-power company execs charged in massive Siemens bribery case |url=http://www.timesofisrael.com/ex-power-company-execs-charged-in-massive-siemens-bribery-case/ |access-date=26 August 2016 |website=[[The Times of Israel]]}}</ref> Siemens also faced repercussions from the [[World Bank]] due to fraudulent practices by its Russian affiliate. In 2009, Siemens agreed not to bid on World Bank projects for two years and to establish a $100 million fund at the World Bank to support anti-corruption activities over 15 years, known as the "Siemens Integrity Initiative." Other substantial fines include a payment of ₦7 billion (US${{To USD|7000|NGA|year=2010}} million) to the [[Federal government of Nigeria|Nigerian government]] in 2010, and a US$42.7 million penalty in Israel in 2014 to avoid charges of securities fraud.