World Bank bars Siemens’ Russian unit for corruption

The World Bank has said it has barred a Russian subsidiary of Germany’s Siemens from participating in bank projects for four years, citing evidence of fraud and corruption.

Limited Liability Company Siemens (000 Siemens) was debarred effective November 25 “for having engaged in fraudulent and corrupt practices in relation to a World Bank-financed project,” the Washington-based institution said.

The action came after a World Bank investigation into corrupt practices under the development lender-financed transportation project in Russia, the Moscow Urban Transport Project, and targeted violations the Siemens unit committed prior to 2007, the bank said.

The World Bank announced in July a comprehensive settlement with Siemens AG after the German company acknowledged past misconduct in its global business.

Under the deal, Siemens agreed to pay $100 million over the next 15 years to support anti-corruption work and a voluntary two-year shut-out from bidding on World Bank business for the group all of its consolidated subsidiaries and affiliates, through December 31, 2010.

The agreement included the four-year debarment for 000 Siemens.

source: Business Standard

Tags: seimens, siemens unit barred, world bank siemens

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