German technology giant Siemens AG has agreed to pay Israel $44 Million to settle a charge that it bribed executives at the Israel Electric Corporation (IEC) to win a bid to supply turbines from 1999 to 2005, Israel’s Justice Ministry announced Monday. The company has also agreed to appoint an external inspector to supervise its business in Israel.
“We are pleased that the Israeli State Authorities chose to have an arrangement that does not include an indictment against Siemens AG recognizing…. that Siemens fully cooperated in the course of the investigation,” Siemens said in an e-mailed statement.
Siemens AG says it plans to continue its business in Israel on a major scale, including purchasing Israeli products and services and investing in Israeli companies.
Six IEC executives are facing charges in Tel Aviv court for bribery and money laundering. They are accused of accepting hundreds of thousands of dollars in cash bribes or, for the discriminating corrupt officials, transfers to their Swiss bank accounts.
Last October a former finance officer for Siemens in Argentina admitted to paying $100 million in bribes to government officials to secure a contract to produce national identity cards.
And prosecutors in Germany are investigating Siemens for allegedly charging $2.2 million for work that was never done at Berlin’s long-delayed new airport.