Siemens upbeat on bribery insurance payout (Insurance to pay Sieman's fine for corruption)

[Robbien]

Source: Reuters

FRANKFURT, Jan 18 (Reuters) - Siemens is optimistic it will get a payout from 250 million euros ($331.4 million) of insurance cover it took out for damages caused by senior company officials, a German newspaper reported on Sunday.

The Sueddeutsche Zeitung cited company sources at the German engineering group as saying an insurance consortium led by Allianz (was prepared to pay, though not the full amount, and that talks were under way to determine the exact sum.

Siemens and Allianz declined comment on the report.

Siemens years ago took out the policy covering actions by top executives and supervisory board members.

It now wants it to cover some of the nearly 2 billion euros in costs it incurred from a bribery scandal that cost the jobs of former Chief Executive Klaus Kleinfeld and ex-CEO and former supervisory board Chairman Heinrich von Pierer.



Read more: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLI27244620090118

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For two decades Siemen's had a $400 million line item in their annual budget for bribes. Now Siemen's is claiming reimbursement from insurance for their standard bribery policy claiming it was due to senior exec's misdeeds? And the insurance is willing to pay?

This is nuts.