Greece's State Minister for Investment, Harris Pamboukis, said Tuesday that the government would seek damages from German conglomerate Siemens AG (SI) after it was implicated in a wide-ranging bribes-for-contracts scandal.
Speaking on local radio, Pamboukis described the events surrounding Siemens as an "international scandal" and said that "the world has to learn the truth."
Siemens rejected the allegations.
His remarks follow the release of a
2,000 page report by a special parliamentary probe which alleges that Siemens paid millions of euros in bribes to various Greek governments to secure government contracts in sectors ranging from telecommunications to transport, covering a period from the late 1990s up to 2009.
According to the report, which comes after a year long investigation, Greek taxpayers suffered damages on the order of EUR2 billion by paying too much for those contracts.
Late Monday, Pamboukis disclosed that he had sent a letter to Siemens' Greek subsidiary asking for its help in uncovering the truth surrounding the bribes, but also warning of plans to seek damages.
"The letter was sent yesterday and asks, on the one hand, for help in revealing the truth and, on the other, says that Greece will seek some kind of restitution for damages the country has suffered," a source close to Pamboukis told Dow Jones Newswires. "We are now waiting for a response from Siemens."
However, the parliamentary committee's report has also been sharply criticized in the Greek media and by opposition politicians for failing to uncover details of who received the bribes amid widespread indications that the bribes were paid directly into the coffers of Greece's two major political parties.
The committee refused to investigate the campaign finances of the two parties--the ruling Socialist, or Pasok, party, and the opposition New Democracy party--saying it did not have the authority to do so.
Legal experts say that without being able to document where the money went, or shed other light on the details of the scandal, it will be difficult for Greece to press its claim for damages.
In a statement released in Munich, Siemens rejected the allegations.
"As previously reported, in February 2010 a Greek parliamentary Investigation Committee (GPIC) was established to investigate whether any politicians or other state officials in Greece were involved in alleged wrong-doing of Siemens in Greece," the statement said. "In January 2011, the GPIC stated in a letter to Siemens that the alleged damages suffered by the Greek state amount to at least EUR2 billion. Siemens rejected these allegations."
Earlier Tuesday, Siemens posted a 16% increase in first-quarter net profit that beat expectations, as it benefited from the recovering global economy, increased spending on big-ticket items and strong growth in emerging markets.
By Alkman Granitsas
source: Dow Jones Newswires