Gaspari: Siemens reveals "major theft"
Collaboration of the German multinational in the cartel denounced in the São Paulo subway construction opens doors for investigation into serious corruption, argues journalist Elio Gaspari.
247 - Journalist Elio Gaspari sees the Siemens case, which exposed a cartel in the São Paulo subway construction, as an opportunity to investigate "major corruption." Read below:
The box for trains and subways - ELIO GASPARI
Siemens has decided to collaborate with the government, and it's possible that the map of corruption by high-ranking officials will become known.
Since 1993, when the construction companies' slush fund was opened with members of the Budget Committee, there hasn't been such good news exposing the workings of national corruption. Reporters Catia Seabra, Julianna Sofia, and Dimmi Amora revealed that the German company Siemens, the largest electronics equipment company in Europe, will collaborate with the government to expose the formation of cartels that rig bids for equipment purchases in Brazil. It has 360 employees in approximately 190 countries. These were deals worth billions of dollars, with shady dealings in which it participated. This time, the Public Prosecutor's Office may be able to pierce the powerful shield of an undefeated cartel.
Seven years ago, Congressman Osmar Serraglio, rapporteur of the Postal Service CPI (Parliamentary Commission of Inquiry), reported that there were "allegations that need to be investigated further." One of them concerned collusion between the French company Alstom and Siemens to rig a R$ 78 million tender. The complaint included names, dates, and locations. Nothing came of it.
Okay, it would have been considered competitor squabbling. After all, with 110 employees worldwide, the Alstom conglomerate was one of the largest companies in the market. It and Siemens were major suppliers of machinery to Brazilian governments, both federal and those of various states.
In 2008, the "Wall Street Journal" revealed that Alstom was being investigated in France and Switzerland for paying globalized bribes. Brazil was on the list, having been honored with kickbacks in the São Paulo subway system (US$6,8 million in bribes) and the Itá hydroelectric plant (a US$30 million bribe). In a contract with the São Paulo Metro, Alstom and Siemens were partners.
Municipal, state, and federal authorities promised rigorous investigations. A former director of Alstom's energy division had already been arrested. An advisor to a senator was wiretapped asking for money in connection with an Eletronorte contract. If that weren't enough, the Swiss Public Prosecutor's Office had names, addresses, ID numbers, and account numbers. There, a company director went to jail. In Brazil, even deposit slips were found. Mark Pieth, president of the Anti-Corruption Group of the Organisation for Economic Co-operation and Development (OECD), recounted that "in 2005, in the State of São Paulo, people responsible for purchasing equipment didn't ask for bribes for themselves, but suggested that the company make payments or 'political gifts' to the party's coffers." The State of São Paulo has been governed by the PSDB since 1995 and, until 2008, signed 139 contracts with Alstom worth more than R$ 5 billion. Between 2003 and 2008, the Lula government contracted R$ 1,2 billion with the company. All attempts to create a Parliamentary Commission of Inquiry (CPI) in São Paulo were in vain. However, each instance of shielding led to another revelation. It eventually came to light that a former president of Centrais Elétricas de São Paulo (Cesp) admitted to receiving US$ 1,4 million in Switzerland, but claimed it was merely for consulting services. There are already about 20 ongoing cases in the Public Prosecutor's Office regarding Alstom's business dealings in São Paulo.
When louder voices rise up, things move slowly. Siemens' decision, a consequence of new standards of conduct for large companies, could shed light on this dark underbelly. If even that doesn't help, the situation is worse than we think.