Siemens bribes paid through ex-VP’s wife’s US account– US SEC
By Adeyeye Joseph
Published: Saturday, 27 Dec 2008
The United States’ Security Exchange Commission, which investigated global telecommunications giant, Siemens, for using huge bribes to win multibillion dollar contracts in over 16 countries, has revealed that the bribes were paid into the US bank acoount of a former Vice President’s wife. It also reveals that a former Nigerian President, the former vice-president and his wife were some of the recipients of these bribes. The SEC also said that Siemens, accused of running an “annual bribery budget of about $40 million to $50 million” in 16 countries, gave at least $12.7 million in bribes to Nigerian officials between 2001 and 2006.

These revelations were contained in a US SEC complaint document made public last week when the settlement that the US Justice Department and the SEC reached with Siemens was announced. To reach the settlement, Siemens had to plead guilty to violating accounting provisions of the US Foreign Corrupt Practices Act, which outlaws bribery abroad, and agree to pay a fine of more than $2.6 billion. The amount includes $1.6bn in fines and fees to Germany and the United States and more than $1bn for internal investigations and reforms.

However, the SEC complaint, which Saturday Punch obtained from www. sec.gov only describes the recipients of the bribes. It does not mention their names. The document, which was submitted to Judge Richard Leon of the United States District Court for the District of Columbia on December 15, has the US SEC as the Plaintiff and Siemens as the Defendant.

Officials of the US Justice Department explained, in a statement, that the names, which were given to the judge in a sealed envelope, could not be made public because of what they described as ‘privacy laws in several countries’ and for the sake of ‘the integrity of continuing investigations’. But Lori Weinstein, the prosecutor, said the documents were deliberately left with clues to provide “sufficient clarity” for the court to figure out who was who. For example, the recipient of the bribes that Siemens officials reportedly gave to highly-placed Argentine officials during an identity-card contract is described as a “president of Argentina who left office in 1999;” an indication that former President Carlos Menem, who ruled Argentina from 1989 to 1999, is the recipient.

In Nigeria, in particular, Siemens, the complaint says, made approximately $12.7m in suspicious payments in connection with four projects, with at least $4.5m paid as bribes in projects involving the Nigeria Telecommunications Limited and the Ministry of Communications. According to the SEC, the total value of the four contracts was about $130m.

The portion of the complaint, which gave the recipients of the bribes, says that approximately $2.8m of the bribe payments was routed through a bank account in Potomac, Maryland, in the name of the wife of a former Nigerian vice-president.

“The Vice President’s wife, a dual U.S. Nigerian citizen living in the United States, served as the representative of a business consultant that entered into fictitious business consultant agreements to perform ‘supply, installation, and commissioning’ services but did no actual work for Siemens. The purpose of these payments was to bribe government officials. Other corrupt payments included the purchase of approximately $172,000 (N17.3m) in watches for Nigerian officials designated in internal Siemens records as “P.” and “V.P.,” likely referring to the

President and Vice-President of Nigeria.”

It says, “The practice of paying bribes by Siemens COM in Nigeria was long-standing and systematic. According to a high ranking official within Siemens Limited Nigeria, a regional company, corrupt payments in 2000 and 2001 commonly reached 15 to 30% of the contracts’ value. Bribe payments were typically documented using fictitious business consultant agreements under which no actual services were performed. The CEO of Siemens Limited Nigeria forwarded requests for ‘commission’ payments to Siemens headquarters in Germany.

“The illicit payments were then made through a number of means, frequently including large cash withdrawals from cash desks that were then hand-carried in suitcases to Nigeria.”

The complaint accuses Siemens of creating elaborate payment schemes to conceal at least 4,283 payments, totalling approximately $1.4bn.

“Among the transactions on which Siemens paid bribes were those to design and build metro transit lines in Venezuela; metro trains and signalling 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,” the document says.

The Siemens bribery scandal caused a stir in Nigeria in October 2007, after a Munich court had found the company guilty of bribing government officials in several countries and fined it 201 million Euros. The court also released some of the names of these officials, including Nigeria’s, while blacking out others.

Subsequently, the Federal Government suspended dealings with the telecommunications firm and the Economic and Financial Crimes Commission commenced investigations, but the progress of this probe has not been made public. nothing has been heard of the investigations, while the Federal Government has since gone back into doing business with Siemens without the firm being fined, as was done in the US and Germany.

they are obviously the two biggest criminals nigeria has ever seen.
they so much know each other that they do not trust anything about the other.
now that the supreme court has finally allowed yar adua to remain the president, nigerians are waiting to know his stance on the above two high way robbers.

this is another case of muddling the whole water to confuse everybody

the only evidence of payment went to Atiku's wife.
It is possible the "P" was included to make it look like the President was involved. If there was no evidence of direct payment there is no way to conclude that.

I personally don't know why OBJ will collect bribe from Siemens only to encourage investigation into the scandal.

This is yet another case of scandal Atiku is associated with, tomorrow he will jump out to run Nigeria.

Well OBJ is no longer President, Ribadu is no longer EFCC chairman. Nobody can say OBJ is witchhunting those opposed to his 3rd term agenda.

jerseyguy:



The portion of the complaint, which gave the recipients of the bribes, says that approximately $2.8m of the bribe payments was routed through a bank account in Potomac, Maryland, in the name of the wife of a former Nigerian vice-president.

“The Vice President’s wife, a dual US. Nigerian citizen living in the United States, served as the representative of a business consultant that entered into fictitious business consultant agreements to perform ‘supply, installation, and commissioning’ services but did no actual work for Siemens. The purpose of these payments was to bribe government officials. Other corrupt payments included the purchase of approximately $172,000 (N17.3m) in watches for Nigerian officials designated in internal Siemens records as “P.” and “V.P.,” likely referring to the

President and Vice-President of Nigeria.”

Even the reference to P., which is supposed to be president, says that Wrist Watches (not cash), were the items given here.

Since when did Wrist Watch gifts become a bribe tool for a president.  Abi na Rolex  OBJ no get?

If this is all that was attributed to OBJ by the SEC article, then OBJ is a clean man.

Well, people have always said Atiku is not a thief and that OBJ/Ribadu were just witch hunting him due to third term. I wonder what they have to say now.

@GettysBurg,

I agree with you. I don't think OBJ would use Atiku's wife as a conduit to receive a bribe from anyone. I just don't buy it at all

chidichris:

they are obviously the two biggest criminals nigeria has ever seen.
they so much know each other that they do not trust anything about the other.
now that the supreme court has finally allowed yar adua to remain the president, nigerians are waiting to know his stance on the above two high way robbers.

And some people will now say that ribadu was selectively pursuing Atiku becos he is Obj political enemy, Bullshit, I am more likely to believe thet he was pursuing Atiku becos he refused to pass on Obj cut of the deal, Bastards

Tonim:

@mikeansy,

They have always said Atiku is not a thief that OBJ/Ribadu were just witch hunting him due to third term. I wonder what'll be their next excuse now.

@GettysBurg,

I agree with you. I don't think OBJ would use Atiku's wife as a conduit to receive a bribe from anyone. I just don't buy it at all

i would believe that he used her much more than a conduit,remember Mojisola.

Muza:

i would believe that he used her much more than a conduit,remember Mojisola.

haha you are not serious

OBJ na woman wrapper I swear

the whole p for president is name dropping.

atiku is a conman . . . . capable of dropping obj's name and collecting bribe on his behalf without even informing obj.

it is obvious that the case has been judged here.
mikeansy now knows who the criminal is. obj is free.
nigerians always forget that these two guys were 5 and 6 before the issue of 3rdterm.
all the same, there is no more ribadu and obj is no longer the president so let us wait for the two criminals to tell nigerians their stories.

GettysBurg:


Even the reference to P., which is supposed to be president, says that Wrist Watches (not cash), were the items given here.

Since when did Wrist Watch gifts become a bribe tool for a president.  Abi na Rolex  OBJ no get?

If this is all that was attributed to OBJ by the SEC article, then OBJ is a clean man.

hausa man na thief

chidichris:

it is obvious that the case has been judged here.
mikeansy now knows who the criminal is. obj is free.
nigerians always forget that these two guys were 5 and 6 before the issue of 3rdterm.
all the same, there is no more ribadu and obj is no longer the president so let us wait for the two criminals to tell nigerians their stories.

America is not Nigeria, there are records in America.

Nothing is more revealing than the money trail. The money was paid to atiku's wife as bank records show.

Here’s an excerpt from the SEC complaint:

In the four telecommunications projects, approximately $2.8 million of the bribe payments was routed through a bank account in Potomac, Maryland, in the name of the wife of a former Nigerian Vice President. The Vice President’s wife, a dual US.—Nigerian citizen living in the United States, served as the representative of a business consultant that entered into fictitious business consultant agreements to perform “supply, installation, and commissioning” services but did no actual work for Siemens. The purpose of these payment s was to bribe government officials.

http://harpers.org/archive/2008/12/hbc-90004088

The reason its important to get the facts right on time is News organisations in Nigeria like to distort facts. Very soon Chidicris will start quoting Orji Kalu Newspapers' version of the story "The Sun Nigeria".

Muza:

i would believe that he used her much more than a conduit,remember Mojisola.

+ the woman fine

waleab,
you are right and whenever i think about obj, bode george, mrs.etteh, iyabo obasanjo, borrishade, fani kayode, adedibu etc, i think of saints in nigeria.

Muza:

+ the woman fine  

which woman fine?

chidichris:

waleab,
you are right and whenever i think about obj, bode george, mrs.etteh, iyabo obasanjo, borrishade, fani kayode, adedibu etc, i think of saints in nigeria.

all of dem are birds of same stock

waleab:

which woman fine?

Jennifer Atiku Abubakar

Muza:

i would believe that he used her much more than a conduit,remember Mojisola.

Muza:

+ the woman fine

Muza:

Jennifer Atiku Abubakar

thanks what is the logic in this discusion? what has her finesness got to do with the business at hand? i dont want to assume anything please help me out.

mikeansy,
if there is anything good that i have heard from you, it is, america is not nigeria, they have records.
when andy uba was caught in the usa on a money laundary case via the presidential jet, america was nigeria.
sometimes i feel like knowing the age of ppl here. how do you think big politicians as to the rank of a president will give his account for such transaction.
the only truth is to trace further transfers from the initial account and then bring the people involved for questioning.
will it sound good if at the end of the day obj signed the contract and atiku will go and collect bribe?
by the way, obj is still in charge and all other cases that went against him just died without resurection till date.
many orgs in nigeria have in the past pettitioned efcc and other corruption fighting bodies on the ill gotten wealth of obj.
anyways, let us wait for the rest of the news that is if the case will not die just like that.

waleab:

thanks what is the logic in this discusion? what has her finesness got to do with the business at hand? i don't want to assume anything please help me out.

u dnt know wat randy old ObJ is capable of doin

chidichris:

mikeansy,
if there is anything good that i have heard from you, it is, america is not nigeria, they have records.
when andy uba was caught in the usa on a money laundary case via the presidential jet, america was nigeria.
sometimes i feel like knowing the age of people here. how do you think big politicians as to the rank of a president will give his account for such transaction.
the only truth is to trace further transfers from the initial account and then bring the people involved for questioning.
will it sound good if at the end of the day obj signed the contract and atiku will go and collect bribe?
by the way, obj is still in charge and all other cases that went against him just died without resurection till date.
many orgs in nigeria have in the past pettitioned efcc and other corruption fighting bodies on the ill gotten wealth of obj.
anyways, let us wait for the rest of the news that is if the case will not die just like that.

one of the fews things i have learnt here is how easily people change their views

chidichris:

mikeansy,
if there is anything good that i have heard from you, it is, america is not nigeria, they have records.
when andy uba was caught in the usa on a money laundary case via the presidential jet, america was nigeria.
sometimes i feel like knowing the age of people here. how do you think big politicians as to the rank of a president will give his account for such transaction.
the only truth is to trace further transfers from the initial account and then bring the people involved for questioning.
will it sound good if at the end of the day obj signed the contract and atiku will go and collect bribe?
by the way, obj is still in charge and all other cases that went against him just died without resurection till date.
many orgs in nigeria have in the past pettitioned efcc and other corruption fighting bodies on the ill gotten wealth of obj.
anyways, let us wait for the rest of the news that is if the case will not die just like that.

You have shown time and time again, an inability to stay on point and be concise. Always all over the place in your political discuss.

I dont know what other news you want to hear nothing is more true than the decision of a court proceedings. This news broke out as a result conviction on rep jefferson.

If you want to wait for the The Sun, Tribune, Independent, Leadership and etc to spin the truth upside down before you form your opinion that is your choice. But any grown up adult will tell you the deference between a Court verdict and the opinion of a news editor.

mikeansy:

You have shown time and time again, an inability to stay on point and be concise. Always all over the place in your political discuss.

I don't know what other news you want to hear nothing is more true than the decision of a court proceedings. This news broke out as a result conviction on rep jefferson.

If you want to wait for the The Sun, Tribune, Independent, Leadership and etc to spin the truth upside down before you form your opinion that is your choice. But any grown up adult will tell you the deference between a Court verdict and the opinion of a news editor.

i agree wit u

Muza:

u dnt know what randy old ObJ is capable of doin

no u tell us instead of making allegations.

waleab:

no u tell us instead of making allegations.

its not so diff to imagine

ok atiku is a criminal and obj is a saint

chidichris:

ok atiku is a criminal and obj is a saint

If that is the conclusion u want to hold good luck!!!

All we are saying is Atiku is a reckless fraudstar who does not deserve the number one seat in Nigeria.

OBJ is not planning to run again for President and so what anyone makes of the character of the man is not my business. What I can not agree is where people muddle the water and claim all is corrupt and for that reason we should not attempt to demand good leadership.

You know we can make do with IBB or Atiku as President because everybody in Nigeria is a thief. That is the myth I am vehemently opposed to.

That myth has been fed into you Chidicris and that is why you criticise every thing without a clear idea of what will bring about a small change in Nigeria so that we are making progress.

Mesiah will not come down from heaven to have a radical change in Nigeria. There can only be an incremental change from time to time. So your ideology that we must not do anything because we are getting some other things wrong is what I find annoying.

It only feeds into the hands of the corrupt we are all opposed to.

mikeansy:

You have shown time and time again, an inability to stay on point and be concise. Always all over the place in your political discuss.

I don't know what other news you want to hear nothing is more true than the decision of a court proceedings. This news broke out as a result conviction on rep jefferson.

If you want to wait for the The Sun, Tribune, Independent, Leadership and etc to spin the truth upside down before you form your opinion that is your choice. But any grown up adult will tell you the deference between a Court verdict and the opinion of a news editor.

I thought I was the only person that noticed this over 2 years ago. Na wah for nairaland.

.

mike and afam,
at least for once the americans are the good people here simply because they traced the money to atiku's wife's account.
afam, u disappeared all these while the saints of obj's regime have been facing panels. when ribadu was in power, u all were saying yes to the fight against corruption, now that waziri is in power, it has turned to witchhunting.
all i am saying is that if anyone is going to fight corruption in nigeria, he must be straightforward in doing so otherwise it will multiply like it did during obj's regime.
every nigerian including you and afam are aware that obj was corrupt and so was his regime and a few points to prove that are as follows;
1. $16 billion on power supply - no result
2. 300 billion naira on roads - no result
3. april polls that braught yar adua to seat - messed up
4. the inability to arrest, stop and reduce the activities of the likes of adedibu, chris uba, bode george, tonny annenih, borrishade, fani kayode etc
5. the sales of nnpc, npa, oil wells, govt houses which yar adua's govt has cancealed and recalled.

at least 70% of nigerians are aware of the above mentioned points. link me to your points as i have done and let me take you down the memory lane even with the international media reports which we have confirmed to be the authentic news now.

afam, am happy that u mentioned it that i have been like this for 2 yrs nowthen compare those issues that i had always pointed at in the pst with the situations at hand. there is a common law which sees a ,man in front at the back whenever there is an order to turn back in a military parade.

my next happy moment will be that day when obj will be relieved of all posts and he will enjoy the status of an ordinary citizen then he will dance to the beat of this music that he has been playing.

chidichris:

1. $16 billion on power supply - no result
2. 300 billion naira on roads - no result
3. april polls that braught yar adua to seat - messed up
4. the inability to arrest, stop and reduce the activities of the likes of adedibu, chris uba, bode george, tonny annenih, borrishade, fani kayode etc
5. the sales of nnpc, npa, oil wells, govt houses which yar adua's govt has cancealed and recalled.

And Yaradua\Waziri are fighting the corruption better now because,

1. We now have stable power suply because he has released money to finish plants built by Obj's administration and build additional ones

2. Ferma that Obj used to loot the 300 billion naira are now functioning better.

3. yaradua the product of the poll is he not the best candidate the north have to offer then?

4. bode George stole much more money than Ibori&co that are Yaradua's right hand man.

5. And since the recall of the sales of these companies they are now providing better services.

What you have against Obj is sentimental my guy. Obj may have been selective in his fight against corruption but I doubt if we can have a better fighter.

stanech:

And Yaradua\Waziri are fighting the corruption better now because,

1. We now have stable power suply because he has released money to finish plants built by Obj's administration and build additional ones

2. Ferma that Obj used to loot the 300 billion naira are now functioning better.

3. yaradua the product of the poll is he not the best candidate the north have to offer then?

4. bode George stole much more money than Ibori&co that are Yaradua's right hand man.

5. And since the recall of the sales of these companies they are now providing better services.

What you have against Obj is sentimental my guy. Obj may have been selective in his fight against corruption but I doubt if we can have a better fighter.

Abeg, helep me tell am well well.

It is funny to note that those who kept shouting selective anti corruption fight are silent now or support the present style where only politicians that were close to OBJ are being investigated by EFCC even when the likes of Ibori, Kalu etc call the shots in Nigeria today.

Hmmmmmmmmmmmm,