AP News, December 22nd, 2006
Six suspects in a corruption probe of German electronics company Siemens AG have been released from custody after providing evidence that supports the allegations against them, prosecutors said Friday.
Six current or former Siemens employees, including the ex-head of its telecommunications equipment unit, Thomas Ganswindt, were detained after Munich prosecutors ordered raids on company's offices across Germany in November.
Investigators accuse the six of committing breach of trust against Siemens in cases stretching back to 2002 by setting up secret funds outside Germany. Siemens said it identified suspicious payments involving some 420 million euros (about $550 million).
Munich prosecutors said Friday that five suspects were released after agreeing to unspecified conditions. The sixth suspect was released earlier this month.
The suspicion of breach of trust "has been further strengthened by the comprehensive statements of the accused," the prosecutors said in a statement.
All six as well as Siemens are cooperating, they said.
The six remain under investigation, though it is unclear when they might be charged. Prosecutors have not released their names, in line with German privacy laws, though officials have confirmed reports that Ganswindt is the most senior among them.
Swiss and Italian prosecutors, who are also conducting investigations, suspect the secret funds were used to pay bribes to secure lucrative foreign contracts for the Munich-based company.
Chief Executive Klaus Kleinfeld has hired an outside anti-corruption expert and a law firm to examine and revise Siemens' own anti-corruption safeguards.
In an interview published in Friday's Wall Street Journal, Kleinfeld defended executives' role in the investigation and said the company had already tightened compliance procedures in recent years.
Chairman Heinrich von Pierer has rejected calls for his resignation over the scandal. He insists he was unaware of any secret payments during his 12 years as chief executive.
Shares of Siemens were little changed on Friday afternoon at 73.65 euros ($97.07) on the Frankfurt exchange.
