THE Federal Government, yesterday, suspended further dealings with Siemens, the German company alleged to have bribed some senior Nigerian government officials for the purpose of winning contracts.
The decision will subsist until the conclusion of investigations into the allegations, according to Information and Communications Minister, Mr. John Odey.
He told reporters at the end of the Federal Executive Council Meeting in Abuja that as a demonstration of the administration�s zero tolerance for corruption, a contract awarded to Siemens for the construction of 14 indoor control panels complete with circuit breaker for power generation has now been cancelled. The cancelled contract was worth N128 million.
He said since Siemens was under investigation by the Federal Government and Germany over the allegations, �it would be morally indefensible� for Nigeria to continue to deal with it.
He said the decision to suspend further dealings with Siemens resulted from a memo by the president on the need to improve power generation and transmission in the country. Siemens, he said, had, before the bribery scandal became public, participated and won the contract.
�The Federal Government places high premium on transparency and zero tolerance for corruption.
This company is undergoing investigations for corrupt practices in Nigeria as well as in Germany and as a result of that we excluded them from the bid until this investigation is concluded and they are exonerated or other wise,� he said.
Germany�s labour union moves against Siemens
This latest reaction to the bribery scandal comes on the heels of fresh allegations by Germany�s leading labour union against the company. Several of the leading figures in the Siemens-bribe-for-contract scandal have denied their role in the allegation.
The IG Metall labour union is planning to bring charges against Siemens for breaking German law by trying to influence labour unions with bribes.
According to reports in the International Herald Tribune, the �measure is in response to allegations last week that Siemens transferred millions of dollars to finance a so-called independent labour association as a counterweight to IG Metall, Germany�s most powerful union. IG Metall said it would announce the filing from its Frankfurt headquarters after a final vote by its leaders.�
Siemens Head of Media Communications in Nigeria, Mr. Segun Akinlabi, was evasive when Vanguard called him last night on the latest action of the Federal Government.
He claimed to be driving when his mobile number was called, and promised to call back but never did.
When his mobile phone was tried again later, he had switched off.
The international investigation had involved public prosecutors spanning Germany, Greece, Italy, Switzerland, and Austria who uncovered large-scale cash-for-contract deals by the German company in a number of foreign countries including Nigeria.
Siemens, which employs some 461,000 people worldwide and 600 in Nigeria, has been doing active business in Nigeria since the 1950s in the areas of ICT, Automation and Control and power.
Siemens: The background
A Munich (Germany) court had, in an October 4 ruling, named four former Nigerian Ministers of communication � Cornelius Adebayo, the late Haruna Elewi, Tajudeen Olanrewaju and Bello Muhammed� as having received bribes of about 10 million Euro from the company to facilitate award of contracts.
Several other government officials and chairman of the Senate Committee on Foreign Affairs, Professor Jubril Aminu, were also fingered. They have all denied receiving bribes from Siemens.
The court indicted Siemens for paying millions of Euros to ministers in Nigeria, Russia and Libya with a view to winning contracts.
The bribes were allegedly shared by a manager in the company, Mr. Reinhard Seikacef. The company has accepted responsibility for its conduct and agreed to pay a 201 million Euro fine.
Siemens is Europe�s largest engineering company.
It has written a letter to President Umaru Yar�Adua seeking an audience to enable its management explain what transpired.
President Yar�Adua in his initial response to the scandal on November 18 in far away Saudi Arabia vowed that anyone found culpable in the deal would not go scot free.
He then directed all the relevant security agencies to commence investigations and take appropriate legal action against anyone found wanting.
The ICPC, the EFCC and the Police are already investigating.
Indeed, the ICPC wrote to the named ex-government officials to come and say what they know about the matter while the police have invited the International Police to assist them in their own probe.
FEC approves N1.4bn for power lines
Meanwhile, the Federal Executive Council yesterday awarded a N1.4 billion contract for the design, manufacture and supply of transmission maintenance equipment.
The contract also covers two 150MV/132 power transformers with accessories and spare parts and six 130MV/33KVA transformers as well as the supply of combustion liners assemblies at the Ughelli and Sapele Power stations at the cost of N77 million.
Council also approved the purchase of four 33KVA transformers and 10 11KVA indoor gears to reinforce electricity generation and transmission in the country.
The contract, which is worth N164.9 million, is to be funded with internally generated revenue of the Power Holding Company of Nigeria (PHCN).
Other contracts were in respect of solar powered street lights for the Federal Capital Territory at N122.4 million and construction of a cottage hospital at Zuma complete with Radiology, Pharmacy and other departments at the cost of N276.4 million.
Similarly ratified was the anticipatory approval from the president for the International Development
Agency loan for three states of Kwara, Kano and Kaduna states.
Yesterday�s meeting was preceded by the decoration of the president and Vice President Goodluck Jonathan as part of preparations for Armed Forces Remembrance Day celebration.