Siemens cooperating with Austrian authorities in corruption probe

ZURICH (Reuters) -Siemens is cooperating with authorities in Austria on an investigation into allegations of possible corruption related to hospital building contracts.

Several people are being investigated for serious fraud, the prosecutor’s office in Feldkirch said, adding that the sums involved are believed to be less than 10 million euros ($10.99 million).

Siemens said the investigation was based on information the company had provided to the public prosecutor’s office in the course of an ongoing compliance investigation.

“Siemens is cooperating fully with the authorities,” the engineering company said, adding that it would not comment on ongoing investigations.

Austrian prosecutors said that five people had been arrested as part of the investigation, with several house searches taking place last week.

The prosecutor declined to confirm the name of companies or individuals involved.

German newspaper Die Welt on Tuesday said the alleged fraud concerned a “criminal system” in which suspects used forged documents to enrich themselves.

The allegations relate to inflated invoices for the delivery of building technology from Siemens’ Smart Infrastructure division, the paper said, adding that the invoices were paid in connection with extensions and new buildings used by a public health operator in Voralberg.

($1 = 0.9098 euros)