WASHINGTON — The World Bank said Monday that it had barred a Russian subsidiary of German conglomerate Siemens for four years for fraud and corruption tied to a Moscow transportation project.
The blacklisting of the unit, Limited Liability Company Siemens, means that the subsidiary will not be able to participate in or bid for development projects financed by the World Bank during the four-year period.
The findings of corruption by the World Bank against the Siemens unit were revealed last year after a probe by the global lender, although at the time the bank did not announce the four-year penalty.
“Limited Liability Company Siemens has been debarred for 4 years in connection with violations committed prior to 2007,” the World Bank said.
Monday’s news follows a settlement between Siemens and the World Bank on July 2, 2009 in which the parent group acknowledged “past misconduct in its global business” and voluntarily agreed that the group would not bid for World Bank projects until the end of 2010.
As part of the settlement, Siemens also agreed to contribute $100 million over the next 15 years to support global efforts to fight fraud and corruption.
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