Quote:
Originally Posted by Hillbilly
Siemens has been charged with bribery and has admitted its guilt to slightly lesser charges and has been fined $1.6 billion for paying off foreign officials in order to get contracts.
Although I have not found out anything directly connected to the DR (yet), you can bet dimes to dollars that something will come to light.
Interesting that two of the countries most associated with the Dominican Republic, Venezuela and Haiti are both mentioned. "If you run with the crows????" "Tell me who you hang with and I'll tell you what you are???"
"Birds of a feather..."
This has got to get interesting.
HB
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Excerpt from the SEC investigation into Siemens:
During this period, Siemens made thousands of payments to third parties in ways that obscured the purpose for, and the ultimate recipients of, the money. At least 4,283 of those payments, totaling approximately $1.4 billion, were used to bribe government officials in return for business to Siemens around the world. Among others, Siemens paid bribes on transactions to design and build metro transit lines in Venezuela; metro trains and signaling devices in China; power plants in Israel; high voltage transmission lines in China; mobile telephone networks in Bangladesh; telecommunications projects in Nigeria; national identity cards in Argentina; medical devices in Vietnam, China, and Russia; traffic control systems in Russia; refineries in Mexico; and mobile communications networks in Vietnam. Siemens also paid kickbacks to Iraqi ministries in connection with sales of power stations and equipment to Iraq under the United Nations Oil for Food Program. Siemens earned over $1.1 billion in profits on these transactions
Siemens failed to implement adequate internal controls to detect and prevent violations of the FCPA. Elaborate payment mechanisms were used to conceal the fact that bribe payments were made around the globe to obtain business. False invoices and payment documentation was created to make payments to business consultants under false business consultant agreements that identified services that were never intended to be rendered. Illicit payments were falsely recorded as expenses for management fees, consulting fees, supply contracts, room preparation fees, and commissions. Siemens inflated U.N. contracts, signed side agreements with Iraqi ministries that were not disclosed to the U.N., and recorded the ASSF payments as legitimate commissions despite U.N., U.S., and international sanctions against such payments.
In November 2006, Siemens' current management began to implement reforms to the company's internal controls. These reforms substantially reduced, but did not entirely eliminate, corrupt payments. All but $27.5 million of the corrupt payments occurred before November 15, 2006. The company conducted a massive internal investigation and implemented an amnesty program to its employees to gather information.
Furthermore:
The contracts awarded for the construction of the SD Metro were carried out via an external appointed board as agreed when the capital loans were extended. The DR only provided the exacting specs that the system was looking for and the several companies that bid on the contracts did so under the umbrella of the external board, so to provide full transparency on the contract selection and related transfer of funds. The funds were disbursed directly from the foreign LOCs and using the board's full agreement that the bidding and winning process was carried out without any kickbacks or funnels.
Siemens was already cooperating with the German gov and US SEC investigation on regards to the matter, well before the SD Metro's partial sub-system contract was awarded to them.
Regarding any kickbacks in the construction of the SD Metro, you can look within the country to know that big companies awarded the actual structures completion did somehow pass the billetes to obtain the contracts... Not a secret in the DR at all...
In fact Grupo Modesto bitted more than it could chew and gulp down, as recently it turned over the concession of several road projects back to the gov as it was having trouble keeping the "Deadline" to deliver them.
As you may well notice the DR and the USA cooperate more on so many issues than many other of the countries listed where investigations took place on the matter. The contract by Siemens with the DR was scrutinized very well by the federal agents stationed in the DR on a permanent basis.
But you have the right to your opinion on the issue and if you think the same after reading this above, well! It's your opinion after all!