SIEMENS Trial: 75million DM in bribes, 69million EUR the loss for Greek state

SIEMENS bribes amounted 75 million Deutsche Mark, while the loss for the Greek state was 69 million euros, the prosecutor of the three-member Felony Court of Appeals stated on Monday.

“For the signing of the 8002 agreement between Siemens and [Greece’s Telecommunications Company] OTE , in 1997, 75 million mark was allocated to unlawfully bribe state officials, while for its expansion in 2001, another 19 million DM was given in bribes ,” said prosecutor Eleni Skeparnia in her speech.

After two years of hearing procedure, the trial of so-called SIEMENS Black Funds is heading towards conclusion with the prosecutor’s argument on Monday.

The case concerns the contracts between the German company and OTE for the digitization of its centers. 60 defendants, former executives of OTE parent company and subsidiaries stand trial for money laundering.

The amount paid for bribes was 69 million euros and so was the loss for the Greek state, the prosecutor said.

The prosecutor invoked a parent company document from January 1998, which stipulated that for the 8002 contract 75 million DM should be made available for kickbacks, while for the extension of the contract in 2001 additional 19 million DM was allocated.

These amounts correspond to 8% of the total cost of the initial contract and to 8.5% of the total cost for its extension.

It was a policy of the parent company for all countries with which it singed contracts between 1980-2006 the prosecutor said among others adding “in Greece bribes had a long tradition. Until 8002 signed in 1997, Siemens seems to have been allocating €15 million per year. ”

A prosecutor’s extensive analysis of the ways the bribes were given showed that the illegal payments were either transferred through off shore companies and consultancy firms, but were also given in cash.