Some of Germany's best-known and highly respected companies, including Siemens and Volkswagen, have hit the headlines this week in corruption scandals that threaten to tarnish Germany's squeaky clean business reputation.
Perhaps by far the most spectacular was engineering giant Siemens in a vast embezzlement scandal -- with possible links to the late Nigerian dictator Sani Abacha -- that shocked even the most hard-nosed observers.
Prosecutors have arrested a total of seven Siemens employees, both current and former, amid allegations they diverted 200 million euros (US$260 million) of company money into overseas slush funds to pay for major contracts.
The arrests were made after more than 200 police officers, tax inspectors and investigating magistrates raided about 30 offices and homes of Siemens employees and seized some 36,000 documents.
One of the employees has subsequently been released, but six still remain in custody and are currently being questioned by prosecutors.
The employees were "being questioned, some of them a number of times, and a number of statements have been made," a spokesman for the prosecutors said, declining to elaborate further.
A report in the reputable daily Sueddeutsche Zeitung on Friday claimed that one of the men admitted paying massive bribes to the regime of the late Abacha.
It said the former employee told investigators it was common to pay sweeteners in Africa to secure contracts and that he had acted as a middleman, channelling between 75 million euros to 100 million euros a year to Nigeria through bank accounts in Austria in the 1990s.
Abacha is suspected of having looted about US$2.2 billion when he ruled Africa's most populous nation from 1993 until his death in 1998.
The extent of the Siemens scandal surprised even the most seasoned investigators.
"It astonished us," said Peter von Blomberg, the deputy head of the German arm of Transparency International.
"The size of the case begs the question whether corruption is part of Siemens' corporate culture and is knowingly tolerated by management, or whether the company is simply the victim of ruthless managers, acting for their own personal gain," von Blomberg said. "Whatever the answer is, all control systems have clearly failed."
Siemens promised to get tough on wrongdoers amd immediately suspend any employees where suspicions of illegal behavior had hardened.
"We have to relentlessly clarify and punish irregularities. Employees who violate our compliance regulations hurt Siemens in every respect. We cannot tolerate that," chief executive Klaus Kleinfeld said.
A long-running corruption probe at auto giant Volkswagen also returned to the spotlight this week with the arrest of the former head of the group's general works council, Klaus Volkert.
Volkert, who was forced to resign when the affair came to light in the summer of last year, is seen as one of the central figures in a massive bribery scandal that top-pled a number of influential figures, including VW's former human resources chief, Peter Hartz.
The scandal centers on the alleged payment of extravagant bonuses and illegal perks to mem-bers of VW's works council in return for their approval of painful and unpopular restructuring measures.
Another company to hit the headlines was E.ON, Germany's biggest power supplier, which was accused by the EU Commission in Brussels of interfering in a price-fixing probe.
E.ON rejected the charges, but, if found guilty, could face a fine of hundreds of millions of dollars.
Von Blomberg insisted that, despite the latest cases, corporate corruption was not on the rise in Germany.
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source