CorporateWorld 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.
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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.