Yesterday the Wall Street Journal came out with an article that alleged that the current CFO of Siemens and one or more members of the board of directors at Siemens may have known about the corrupt practices taking place in both the wired and wireless divisions of Siemens for multiple years.
Today, the CFO and the board members mentioned came out to deny that they had any previous knowledge of the payoffs that were provided via fictional consultants.
Several employees of Siemens were arrested last fall and a few have agreed to cooperate with authorities and according to the WSJ article fingered current CFO Joe Kaeser.
German investigators have previously announced that Heinz-Joachim Neuburger, the former CFO and Kaeser’s predecessor, is a suspect.
The cooperative witnesses indicated that Mr. Kaeser saw some of their corrupt practices while he was involved in the wireless-telecom-equipment unit where he was an executive manager.
Tomorrow shareholders convene for an annual meeting where they will vote on Senior management’s actions. Those shareholders are not likely to be happy with the situation that has revealed that about $544 million of suspicious transactions had been found, which could result in writing those previously expensed items back on the books for tax purposes.
You can’t deduct a bribe.
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