The International Herald Tribune (IHT) reports that Peter Loscher, the new chief executive of Siemens, views the decision as playing an important part in helping the company come to terms with the corruption revelations. So far the scandal has prompted Siemens’ chief executive and chairman to step down, although neither has been implicated. The IHT adds that it could potentially also result in a major shake up of the company’s structure.

The IHT notes that this development is part of an ongoing scandal – German prosecutors are currently looking into other bribery charges concerning Siemens, and authorities in other countries have reacted to the debacle by launching anti-trust probes.

Siemens’ own internal investigations have, AFP writes, “uncovered 420 million euros ([US] 606 million dollars) in “questionable payments” dating back to 1999, although press reports say the sum involved exceeded 1.5 billion euros [US $2.1 billion].” The same article reports that Siemens is offering to spare senior managers from any harsh actions in return for whistleblowing for any violations that they are aware of.

According to the Financial Times, “several analysts believe Siemens could be looking at a fine of more than € 1bn [US $1.4 billion]” from the legal proceedings in America alone. Siemens is currently being scrutinised by the American Department of Justice and the Securities & Exchange Commission.

In spite of this, The Economist reports that many analysts are optimistic that “Siemens will not only survive but benefit from all the upheaval.”

To read TI Germany's press release on this topic, please go to: www.transparency.de/2007-10-05-Geldbusse-Siemens.1091.0.html?&contUid=2159