Siemens expects US corruption fines

Siemens is expecting a large fine from the US Securities and Exchange Commission following a corruption investigation.

Siemens is expecting a large fine from the US Securities and Exchange Commission following a corruption investigation.

Siemens has been rocked by four separate accusations of organised bribery. Investigators are examining whether Siemens staff used slush funds to win telecoms contracts or buy off labour. A German court convicted two former executives on May 14th.

The German engineering group has not set aside any provisions to handle a major fine and in the worst case could also face US sanctions, including exclusion from bidding for certain contracts, chairman Gerhard Cromme said.

Mr Cromme would not speculate on how big the fine might be, but he said reports of fines of up to €5 billion were "plucked from thin air". Sanctions were also "not the most likely scenario", he said.

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Mr Cromme, who said Siemens would no longer tolerate any shady dealings, has rejected speculation that the company could be broken up as a result of the scandal, but he said it could divest some fringe businesses.