Global German powerhouse Siemens has been caught in a tax fraud disaster involving company executives paying millions of dollars to German industry unions, according to European press.
Former Siemens executive, Johannes Feldmayer, told the Nuremberg court on Wednesday that he paid tens of millions of dollars to a German trade union called AUB under the understanding that it would continue to support Siemens’ goals.
A report from Reuters today said that IG Metall, the biggest trade union in Germany, alleges that the AUB got preferential treatment from Siemens and “won undue influence” because of the payments.
It is alleged that AU$61 million were paid from 2001 to 2006 to AUB president Wilhelm Schlesky under the proviso that AUB would support Siemens.
Schlesky is accused to have used the lump sum to buy cars and antiques for himself.
The scandal is the second of its kind to blacken Siemens’ name. The worldwide IT, building, drive technology, automation technology and communications supplier recently also acknowledged that up to AU$4 billion worldwide may have been used to illegally win contracts for the company, according to Reuters.
The event directly involved about 300 Siemens staff, and three top executives of the company resigned as a result.