German electric and telecom giant Siemens faces more trouble in a fraud investigation, after an employee gave German investigators details of a bribes-for-business scheme and claimed that senior officials were involved.
Munich prosecutors are investigating allegations that officials at the Siemens telecom division diverted at least €200 million ($266.6 million) to a slush fund at banks in three countries for use as bribes.
On Friday, prosecutors ordered the release of Reinhard Sickzek, a former Siemens telecom sales official, after he provided details of a system of bribes paid to potential customers in Africa, Russia and the Middle East. Sickzek ratted-out at least one board member at Siemens as the supervisor of the scheme, and told police that a member of the Siemens Compliance Department advised him on how to prevent detection of the bribery operation. (info from The Wall Street Journal)