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article imageSiemens to forgive €80 million of Greek debt over corruption

By Katerina Nikolas     Feb 28, 2012 in Business
The German industrial company Siemens is to forgo €80 million in outstanding Greek debt in reparation for the bribery scandal which left Greek taxpayers overpaying €2 billion in Siemens contracts.
It is over a year since the findings of a report was published into corrupt business practices by German industrial company Siemens. The findings, published in the Wall Street Journal, concluded "Siemens paid millions of euros in bribes to various Greek governments to secure government contracts in sectors ranging from telecommunications to transport, covering a period from the late 1990s up to 2009." The report revealed that "Greek taxpayers suffered damages on the order of €2 billion by paying too much for those contracts."
The Local reported that the German company is willing to "sacrifice €80 million out of €150 million owed as reparations for systematically bribing Greek officials over the years." Greece will invest €90 million in new projects with Siemens in an effort to boost employment. Greek Prime Minister Lucas Papademos apparently favours this course rather than pursuing Siemens for the €2 billion originally sought by Greece in damages.
According to Stop Cartel Siemens paid out $800 million to settle bribery charges in the U.S. while until now Greece has not received any reparations from Siemens, nor from the Greek ministers who boosted their personal coffers with the illicit payments. Fifteen ministers from Pasok and New Democracy were named in a parliamentary investigation as receiving bribes, but only two have admitted their involvement.
More about Siemens, siemens bribery, Siemens Greece
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