Siemens

Siemens, the German multinational conglomerate, is a global engineering and technology company, that is present across various industries, from energy to healthcare to transportation. Siemens has been a target of boycott campaigns led by the Boycott, Divestment, and Sanctions (BDS) movement, due to its involvement in illegal projects and complicity in human rights violations.

Involvement in Occupied Palestinian Territories

Siemens has had a role in projects that support Israel's occupation of Palestinian territories:

Tel Aviv-Jerusalem High-Speed Train

Siemens provides its DDEMU model cars for the Tel Aviv Jerusalem Fast Train (A1). In 2018, Siemens won a tender from the Israeli state-owned railway company, Israel Railways, for the supply of 330 electric cars in the amount of approximately NIS 4 billion ($1.08 billion), as part of the Israel Railways electrification project, which includes the Tel Aviv Jerusalem Fast Train (A1). The A1 train route crosses the Green Line into the occupied West Bank in two areas, using occupied Palestinian land aimed exclusively for Israelis.

Who Profits confronted Siemens on their involvement and they replied in February 2024 trying to devoid themselves from responsibility, despite continuously providing electric cars to Israel and having maintenance contract (up to 29 years) with Israel Railways the owner and builder of the illegal line. They replied:

Siemens was not involved in the construction of the A1 line. An internal and external legal review at the time came to the conclusion that this transaction was in line with our human rights due diligence obligations. Potential new business activities will be subject to another comprehensive human rights due diligence review, particularly about international humanitarian law. We are carefully monitoring current developments in Israel, the Gaza Strip and the West Bank.

Traffic Control Systems

Who Profits documented Siemens’ traffic control systems on Road 5 and Road 443 in the occupied West Bank, as part of an Israeli road system on which Palestinians are forbidden from traveling (documented in 2015, 2010 and 2009). Siemens traffic control systems were also documented on Road 1 at the entrance to the Mishor Adumim illegal settlement industrial zone.

EuroAsia Inter-connector

Siemens is the main contractor for this submarine electricity cable project connecting Israel to Europe. This project is connecting Israel's electrical grid, including illegal settlements in occupied territories, to the European Union. The EuroAsia Interconnector, if built as planned by Siemens, will give international recognition to (i.e., “normalize”) Israeli’s illegal settlements in the occupied Palestinian Palestinian territory, including East Jerusalem, and enable their expansion

Defending Israeli War Crimes

Siemens withdrew from the Web Summit tech conference in Europe following the founder making comments on Israeli war crimes. Several other companies, including Google and Meta, also pulled out. The founder was forced to resign.

Corporate Complicity in Human Rights Violations

Siemens has been linked to projects associated with human rights abuses:

Involvement with Israel Prison Services (IPS)

Through its Israeli representative, Orad Group, Siemens provided equipment and technology to the Israel Prison Service (IPS). In 2020, Orad was contracted by the IPS to be the sole supplier of maintenance service, repairs and changes to Siemens’ fire alarm system from January 2021 until the end of 2023.

Belo Monte Dam in Brazil

Siemens, through its joint venture with Voith Hydro, contributed to the controversial Belo Monte Dam project in Brazil by supplying key equipment, including turbines and automation systems. The dam caused environmental damage, forced displacement of indigenous communities, and human rights violations.

Siemens Historical Nazi-era Involvement

Siemens' history extends back to World War II: Siemens used forced labor during the Nazi regime, including at a production facility near the Ravensbrück concentration camp, a sub-camp of Auschwitz concentration camp

Siemens Factory KZ Bobrek.jpg

Corruption Scandals

Siemens has a long-standing history of corruption and government manipulation, to the extent that it maintained an annual budget specifically for bribery. Between 2002 and 2006, the telecommunications unit alone allocated approximately $40 million to $50 million per year for illicit payments. Before 1999, Siemens even deducted bribes as business expenses under German tax law, as bribery had not yet been criminalized.

Systematic Worldwide Bribery

Throughout the 1990s and 2000s, Siemens paid an estimated $1.4 billion in bribes across Asia, Africa, Europe, the Middle East, and the Americas to secure contracts. These widespread corrupt practices resulted in a record $1.6 billion fine in 2008, one of the largest corporate bribery settlements in history. Despite this, reports indicate that Siemens continued to overlook red flags related to foreign bribery even after the settlement.

Israel

Between 2002 and 2005, Siemens paid $20 million in bribes to senior government officials in the Israeli Occupation to win $786 million in power plant contracts.

Iraq

Siemens participated in the UN Oil for Food Program and entered into 42 contracts under the Program, totaling over $124 million in revenue and approximately $38.2 million in profits. Siemens paid $1.7 million in secret kickbacks to Iraqi-controlled accounts.

Turkey

Between 2000 and 2002, Siemens Turkey entered into twenty contracts for building and rehabilitation of power stations, paying after-sales service fees (ASSFs) totalling approximately $1.2 million. Siemens Turkey's involvement in the Oil for Food Program mirrored that of Siemens France.

Bangladesh

Between 2004 and 2006, Siemens paid $5.3 million in bribes to win a $40.9 million mobile phone contract with Bangladesh’s state telecom board. Bribes reached the Prime Minister’s son.

Nigeria

Between 2000 and 2006, Siemens paid at least $4.5 million in bribes to secure $130 million in telecom contracts in Nigeria. In 2010, it paid ₦7 billion (approximately $46.57 million) as a penalty to the Nigerian government.

Argentina

Between 1998 and 2004, Siemens paid over $40 million in bribes to secure a $1 billion national ID project in Argentina. When a new government threatened to cancel the contract, Siemens paid another $6 million in bribes—yet the contract was still terminated. Siemens later paid $23 million more to settle extortion demands.

Venezuela

Between 2001 and 2007, Siemens paid $16.7 million in bribes to Venezuelan officials to secure $642 million in metro transit contracts.

Mexico

In late 2004, Siemens paid $2.6 million in bribes to a business consultant to resolve cost overrun claims for three refinery modernisation projects in Mexico.

Vietnam

In 2002, Siemens paid around $140,000 in bribes to secure a $35 million contract for a mobile network project with Vietel, a government-owned telecom provider under Vietnam’s Ministry of Defence. Siemens offered to pay 8% of the project value to Ministry of Defence officials and 14% to Vietel executives.

In 2005 Siemens paid over $380,000 in bribes to secure $6 million in medical device contracts with Vietnam’s Ministry of Health.

China

Between 2003 and 2007, Siemens paid $14.4 million in bribes to secure $295 million in medical equipment to Chinese state-owned hospitals,

Between 2002 and 2007, Siemens paid around $22 million in bribes to secure over $1 billion in metro and signalling contracts in China.

Between 2002 and 2003, Siemens paid $25 million in bribes for $838 million in high-voltage transmission projects in South China, funnelling funds through Dubai-based consultants.

Greece

The Siemens Greek Bribery Scandal involved allegations that Siemens AG engaged in widespread bribery to secure state contracts in Greece, particularly in the 1990s and early 2000s. The scandal centred on Siemens' role in securing contracts for the 2004 Athens Olympics and telecommunications deals with OTE, Greece’s largest telecom company. Investigations revealed that Greek politicians and officials had received millions in bribes to favour Siemens in public tenders. The case led to prosecutions in Greece and Germany, with key figures, including former Siemens executives and Greek officials, facing legal consequences. The scandal exposed deep-rooted corruption in Siemens' corporate structures

France

Between 2000 and 2001, Siemens France entered into twelve contracts with the Iraqi Ministry of Electricity for power station renovation, servicing, and spare parts, paying illicit after-sales service fees (ASSFs) totaling approximately $321,745. These contracts were artificially inflated by 10% before submission to the U.N., which was not informed of the inflated prices or Siemens' intention to pay kickbacks to Iraq.

Norway

in 2008 police in Norway imposed a fine on the local unit of German engineering giant Siemens of two million kroner ($400,000) for corruption in defence contracts.

Additionally, Siemens AS faced a case where it was fined 9 million crowns for overcharging the Norwegian military by more than 60 million crowns for IT work between 2000 and 2005

Russia

Between 2000 and 2007, Siemens paid over $55 million in bribes for sales of medical equipment in Russia.

Between 2004 and 2006, Siemens paid around $741,000 in bribes to win a $27 million World Bank-funded traffic control project in Moscow. Siemens also colluded with a competitor to submit a fake high bid and then paid them—and two shell subcontractors—over $3 million.

Japan (1914)

The Siemens Scandal in Japan (1914) is a major political and corruption scandal involving Siemens and the Imperial Japanese Navy. Siemens officials were found to have paid bribes to Japanese naval officers and government officials in exchange for lucrative military contracts. The revelations, exposed by a whistleblower in Germany, triggered public outrage in Japan, leading to the resignation of Prime Minister Yamamoto Gonnohyōe and his cabinet. This scandal highlights Siemens international corruption.

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