World Bank bars Siemens unit for 4 years

By : |November 30, 2009 0

WASHINGTON, USA: The World Bank said on Monday it had barred a Russian subsidiary of German industrial conglomerate Siemens AG for four years for fraud and corruption tied to a Bank-financed Moscow transport project.

The blacklisting of the unit, Limited Liability Company Siemens, means the subsidiary will not be able to participate in or bid for development projects financed by the World Bank during the four-year period.

The findings of corruption by the World Bank against the Siemens unit were revealed last year after a probe by the global lender, although at the time the Bank did not announce the four-year penalty.

                                 

___________________________________________________________________________________________________________

"Limited Liability Company Siemens (OOO Siemens) has been debarred for 4 years in connection with violations committed prior to 2007," the World Bank said in a statement.

Monday’s news follows a settlement between Siemens AG and the World Bank on July 2, 2009 in which the parent group acknowledged "past misconduct in its global business" and voluntarily agreed that the group would not bid for Bank projects until the end of 2010.

As part of the settlement, Siemens also agreed to contribute $100 million over the next 15 years to support global efforts to fight fraud and corruption. It also agreed at the time not to contest any penalty imposed by the Bank against the Russian subsidiary.

The Bank said it uncovered fraud and corruption in the projects during an investigation by its internal corruption fighting unit, which investigates allegations of abuse in World Bank operations.

No Comments so fars

Jump into a conversation

No Comments Yet!

You can be the one to start a conversation.