Siemens Bangladesh Limited (“Siemens Bangladesh”), headquartered in Dhaka, Bangladesh, was a wholly owned subsidiary of Siemens Aktiengesellschaft (“Siemens”), a corporation organized under the laws of Germany with its principal offices in Berlin and Munich. Siemens was major conglomerate that, among other things, engaged in a variety of business activities for national, state, and municipal governments. This included, among other things, developing, constructing, selling, and servicing telecommunications equipment and systems; power generation, transmission, and distribution equipment and systems; transportation equipment and systems; medical equipment and systems; and industrial and traffic equipment and systems. Siemens Bangladesh was a regional company that contracted for and managed projects relating to all Siemens operating groups.
Starting in about 2000, Siemens Bangladesh was involved in the bidding process for and day-to-day operations of the creation of a nation-wide digital cellular mobile telephone network for the Bangladeshi government (the “BTTB Project”). From about May 2001 to about August 2006, Siemens Bangladesh, which was responsible for the local operations on the project, made or caused to be made approximately $5,335,839.83 in corrupt payments in connection with the BTTB Project in exchange for favorable treatment of Siemens in the BTTB Project bid process.
On December 12, 2008, the DOJ filed a single count Information in the District of Columbia against Siemens Bangladesh alleging conspiracy to violate the anti-bribery and books & records provisions of the FCPA. On December 15, 2008, Siemens Bangladesh entered into a Plea Agreement with the DOJ. Under the terms of the agreement, Siemens Bangladesh pleaded guilty to the conspiracy charge and agreed to pay a monetary penalty of $500,000 plus a mandatory assessment of $400. This penalty was the statutory maximum.
