Ex-Siemens man convicted of corruption

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MUNICH, Germany (AP) -- A former Siemens AG manager was sentencedto two years' probation and fined 108,000 euros ($170,000) onMonday for his role in a corruption scandal at the industrialconglomerate.
Reinhard Siekaczek, 57, was convicted of 49 counts of breach oftrust by the Munich state court. During his trial, he acknowledgedsetting up slush funds while a manager at the ICN fixed-linetelephone network division.
"The court has absolutely no doubts about the events," presidingJudge Peter Noll said in reading the court's decision.
Siekaczek was integrated "into a system of organizedirresponsibility," Noll said. He described the defendant as "anold-school Siemens man" who acted out of loyalty on superiors'instructions.
Prosecutors said Siekaczek set up a complex network of shellcorporations to siphon off company money over several years. Theysaid the money was used as bribes to help secure contracts abroadby paying off would-be suppliers, government officials andpotential customers.
Siekaczek testified that his superiors had told him to create a newpayment system after paying bribes abroad became a criminal offensein Germany in the late 1990s. He said judicial authorities hadalready been looking into similar accounts set up in Austria.
"Naturally it was known to me and everyone that we pay commissionsto secure orders," he testified, adding that they had been handled"very discreetly" within a small circle of people.
The judge said it had not been possible to determine whethercompany executives knew about the bribes. He added that it is stillnot clear who received the payments or whether Siemens benefitedfrom Siekaczek's actions.
"At the end of this trial, we can still not exactly say where thismoney is," Noll said.
"I'm relieved that it is finally over," Siekaczek said after thetrial.
Siemens has acknowledged dubious payments of up to 1.3 billioneuros ($2 billion) in a wider corruption case uncovered last year.
Siemens, which makes everything from wind turbines to trams, agreedin October to pay a 201 million euros ($316.25 million) fine to endsome legal proceedings in Germany related to the investigation.
An investigation commissioned by Siemens has found evidence ofviolations across the company and in several countries.
Anton Winkler, a spokesman for Munich prosecutors, said thatSiekaczek was "only a cog in the system" and that charges werebeing prepared in two more cases. He did not elaborate.
Siemens shares fell 1.1 percent to 72.71 euros ($114.26) inafternoon Frankfurt trading.
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