By 
Siemens is engaged in cooperation with Austrian authorities in an ongoing investigation into potential corruption linked to contracts related to hospital construction.
The Feldkirch prosecutor’s office announced on Tuesday (August 8, 2023) that a number of individuals are under investigation for serious fraud, with suspected monetary involvement of less than 10 million euros ($10.99 million).
Siemens stated that the investigation stems from information the company shared with the public prosecutor’s office during a continuing compliance inquiry.
The engineering firm affirmed its full cooperation with the authorities while refraining from commenting on ongoing investigations.
Austrian prosecutors noted the arrest of five individuals as part of the inquiry, with a series of property searches conducted the previous week.
The prosecutor’s office declined to disclose the identities of the companies or individuals under scrutiny.
German newspaper Die Welt reported on Tuesday that the alleged fraud centers around a “criminal system” wherein suspects utilized counterfeit documents to enrich themselves.
The accusations revolve around inflated invoices tied to the supply of building technology by Siemens’ Smart Infrastructure division. The invoices were reportedly paid in relation to expansions and new constructions used by a public health operator in Vorarlberg.
The operator, Vorarlberger KHBG, indicated that it perceives itself as one of several entities impacted by the alleged misconduct.
Martina Ruescher, the chairwoman of the supervisory board, stated, “We likely sustained overcharging over an extended period. The financial repercussions are substantial.”
Vorarlberger KHBG, which oversees five hospitals in Vorarlberg, disclosed its contemplation of seeking reparations from Siemens. The company is also reviewing its internal accounting systems comprehensively.
Comments