Siemens Energy pays $104 million to halt probe into contract fraud allegations

Admin I Tuesday, Oct. 02, 2024

 

BERLIN – A US subsidiary of the German power engineering group Siemens Energy has agreed to pay $104 million to end investigations into cheating in a contract bid.

The case goes back to 2019, when the American Siemens subsidiary was bidding for a turbine order from Dominion, an energy supplier in the state of Virginia. General Electric and Mitsubishi Heavy Industries were also in the running.

According to court documents published on Monday, former employees of the US subsidiary obtained information from a Dominion employee about offers from competitors.

Siemens used this as a guide to create a more favourable offer and won the contract.

However, Dominion cancelled the project in the summer of 2020.

In a statement to the Bloomberg news agency the company said that it had discovered the misconduct of its employees and informed competitors and Dominion about it.

According to the agreement, the subsidiary of Siemens Energy will initially pay $26 million.

A further $52 million will be due by the end of October 2025, with the remaining $26 million to be paid in April 2026.