Bloomberg News

Siemens Fires Brazil Head After Finding Compliance Violation

October 11, 2011

(Adds company comment in second paragraph.)

Oct. 11 (Bloomberg) -- Siemens AG, the European engineering company rocked by a bribery scandal in 2006 and 2007, said it replaced the head of its Brazilian subsidiary with immediate effect because of compliance violations.

The German company, based in Munich, named Paulo Ricardo Stark to succeed Adilson Antonio Primo, according to a statement today. An internal investigation had uncovered “a serious violation of Siemens guidelines occurred within Siemens Brazil prior to 2007,” the company said.

Chief Executive Officer Peter Loescher stepped up internal compliance at Siemens after a bribery scandal that haunted the company for years, cost about $3.2 billion and felled two of his predecessors. Siemens was investigated in at least a dozen countries, in the biggest bribery case in post-war Germany.

For decades, Siemens had paid kickbacks and bribes to win contracts such as a commuter rail project in Venezuela, mobile- phone networks in Bangladesh, power plants in Israel and traffic-control systems in Russia. Siemens in 2008 agreed to pay $1.6 billion to settle probes in the U.S. and Germany.

Siemens, which ousted more than 600 employees from 2007 to 2009 for faults linked to compliance, investigated almost 2,200 possible violations in the wake of the scandal. The number was lower last year, according to Peter Solmssen, the board member responsible for compliance at Siemens.

--Editor: Benedikt Kammel

To contact the editor responsible for this story: Rajiv Sekhri at Richard Weiss in Frankfurt at

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