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Oil-For-Food Scandal

DW staff / AFP (jb)January 3, 2007

Electronic giant Siemens is the latest company to come under investigation for corruption in the UN-supervised oil-for-food program.

https://p.dw.com/p/9e4a
Siemens is already involved in another scandalImage: AP

German industrial group Siemens is being investigated on suspicion of corruption in the oil-for-food program in Iraq, the Financial Times Deutschland reported Wednesday.

The paper quoted a spokesman for the state prosecutor in Nuremberg as saying: "The prosecutor is investigating whether Siemens contravened the law on foreign trade."

Irak Oil for Food Program
The program was meant to help meet everyday needs of IraqisImage: AP

The spokesman said the allegations against Siemens concerned mainly its energy and medical equipment operations and involved a six-figure sum.

The money was allegedly paid as a bribe to Saddam Hussein's regime to secure contracts as part of the UN-supervised food-for-oil program which ran from late 1996 to 2003.

The program allowed the Iraqi government to sell limited amounts of oil to purchase essential goods to alleviate the effects of sanctions on the civilian population.

Similar accusations at Linde

In late December, state prosecutors in Munich said they had opened an investigation into German oil giant Linde, which faces similar accusations over the food-for-oil program.

Linde bietet für BOC
Linde is also under investigationImage: AP

An investigation ordered by UN Secretary General Kofi Annan found in 2005 that more than 2,000 companies from 60 countries bribed Saddam Hussein's government to be allowed to take part in the program.

A Siemens spokesman told AFX News: "We are cooperating with the public prosecutor. But it is important to put this into context and realize that it is part of a wider investigation concerning several companies which took part in the oil-for-food program."

Other charges pending

Siemens is also facing an investigation by German prosecutors over alleged embezzlement, bribery and tax evasion.

Some employees are suspected of collaborating in opening slush fund accounts abroad, which are used for making illicit payments, and of operating a system to embezzle company money.

Seven former and current employees were arrested late last year but freed before Christmas after they made statements to prosecutors.