Ex-Siemens managers deny bribery involvement

MUNICH (Reuters) - Two former top managers at Germany's Siemens have denied involvement in systematic bribery while at the company, prosecutors in Munich said on Wednesday.

Last week Albrecht Schaefer, who was Siemens' anti-corruption manager from 2004-2006, said he repeatedly told then-Chief Financial Officer Heinz-Joachim Neubuerger and other Siemens managers about odd procedures and dubious accounts.

But Neubuerger told prosecutors Schaefer only informed him about the suspicious payments sporadically and late in the process.

Lothar Pauly, former head of Siemens' telecoms business, also says he had no knowledge of the systematic bribery system, prosecutor Hildegard Baeumer-Hoesl said on Wednesday.

"He has disputed the claims," she said at the trial of a key informer, adding that no alarm bells went off when people involved in the deals promised "nice little goodies."

A Munich court has called on several former managers to testify at the trial of the informer, Reinhard Siekaczek, who is accused of extending a system of funds for bribes to win contracts and setting up a network of front firms to transfer cash.

Neuberger said he was shocked when he found out about the suspicious payments and had relied on Schaefer to deal with the issue. Pauly said he had simply counter-signed payments and had taken for granted that others had checked the documents.

A verdict in the trial of Siekaczek is expected on Monday.

Siemens, which makes a wide range of products from medical scanners to wind turbines, is being investigated worldwide on suspicion it paid out cash to win work.

The probe has forced the departure of its chairman and chief executive and has badly dented the company's image.

Former Chairman Heinrich von Pierer and ex-CEO Klaus Kleinfeld have not been accused of any wrong-doing but may face lawsuits by the company for failing to follow up signs of bribery and corruption.

According to a German media report the supervisory board will decide on Tuesday whether to sue 10 former managers.

The U.S. Securities and Exchange Commission is also probing the matter. The company could face fines or U.S. sanctions that would exclude it from bidding for public contracts.

(Reporting by Jens Hack; Editing by Rory Channing)