Case: 1 :08-cv-02167
Assign. Date : 1211212008
(Source: http://www.sec.gov/litigation/complaints/2008/comp20829.pdf)
Page No. 19
5. Mobile Telephone Services in Bangladesh
47. Between 2004 and 2006, Siemens COM paid approximately $5.3 million in bribes to government officials in Bangladesh in connection with a contract with the Bangladesh Telegraph & Telephone Board (BTTB) to install mobile telephone services. The. total value of the contract was approximately $40.9 million. The payments were made to three business consultants pursuant to sham agreements calling for services associated with the mobile telephone project. The ultimate recipients of the payments included the son of the then-Prime Minister in Bangladesh, the Minister of the Ministry of Posts & Telecommunicationsin Bangladesh, and the BTTB Director of Procurement. In addition, Siemens Limited Bangladesh, a regional company, hired relatives. of two other BTTB and Ministry of Post and Telecom officials. Most of the money paid to the business consultants was routed through correspondent accounts in the United States, with at least one payment originating from a U.S. account. Since approximately September 2004, a Siemens business consultant who served as a principal payment intermediary on the Bangladesh bribe payments has been resident in the United States. At least $1.7 million of the bribe payments made through this intermediary were paid into a Hong Kong bank account while the intermediary was residing in the United States.
48. The involvement of senior officials at Siemens regional company in Bangladesh, including a former CEO and the director of the regional company's COM division, in the bribery scheme is revealed both in statements by the officials and in internal email messages, several of which include the tagline, "kindly delete this mail once the purpose is done."
