China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
Witness says Siemens ex-CFO knew of bribes
MUNICH, Germany (Reuters) - Heinz-Joachim Neubuerger, former finance chief at German engineering giant Siemens (SIEGn.DE), knew that paying bribes to win contracts was common practice, according a statement by a Siemens executive read out in court on Monday.
Neubuerger even advised Michael Kutschenreuter, a senior manager at Siemens' telecoms arm at the time, to exchange information on organizing such payments with a manager at Siemens' turbines unit, according to Kutschenreuter's statement.
Kutschenreuter, who is also a suspect in a mammoth investigation by Munich prosecutors into suspected corruption at Siemens, was not himself in court. His statement was read out by prosecutor Hildegard Baeumler-Hoesl.
Neither Neubuerger, now a managing director at private equity firm KKR KKR.UL, nor his lawyer was immediately reachable for comment.
Neubuerger was questioned as a suspect early last year.
The trial at Munich's Higher Regional Court -- of star informer Reinhard Siekaczek, who faces 58 charges of breach of trust -- is expected to be the first of many arising from a years-long investigation by Munich prosecutors.
Siemens, Europe's biggest engineering group, is also being investigated by the U.S. Department of Justice and the Securities and Exchange Commission, among other foreign authorities, and could be barred from bidding for certain U.S. contracts.
The company has so far identified 1.3 billion euros' ($2 billion) worth of suspect payments booked as consultancy fees earlier this decade. The affair led to the resignations of Siemens' chief executive and chairman last year.
Kutschenreuter said in his statement he did go to see the manager in question at Siemens' turbines unit, who has since been convicted of bribing employees of Italian energy firm Enel (ENEI.MI), but the manager was uncommunicative.
Kutschenreuter said Thomas Ganswindt, head of Siemens' telecoms equipment unit at the time and later a member of the company's executive board, also knew of the bribery.
Ganswindt, who is also a suspect, has admitted that point, Baeumler-Hoesl said.
(Reporting by Jens Hack)
