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Dec 15, 2008

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Ragnar Thor

We had a simmilar scandal in NOrway with Siemens and the Norwegian Defence.

http://www.aftenposten.no/english/local/article2149255.ece
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Siemens Business Services of Oslo was ordered Friday to pay a fine of NOK 9 million (USD 1.6 million) for defrauding the Norwegian military through overbilling.

According to ├śkokrim the company overbilled the Defense more than NOK 60 million between 2000 and 2005 in connection with deliveries. Siemens had a massive defense contract to deliver a communication system that was supposed to better integrate the various branches of the military.

In 2002 Per Yngve Monsen at Siemens' production division noticed the overbilling, and also that Defense staff were taking bribes from Siemens. Monsen lost his job in 2004 and received little attention from military leaders when telling his story.

"There had already been reports of poor financial management in the Defense at that time. Military leadership had not initiated a single audit of a NOK 1.3 billion (USD 239 million) contract in four and half years," Monsen told Aftenposten.

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