Siemens gets Athens contract after bribery fine

German engineering giant Siemens, which recently settled a bribery dispute with the Greek government, said on Wednesday it has won a €41 million contract for the Athens metro.

Siemens gets Athens contract after bribery fine
Photo: DPA

Siemens said in a statement it will supply signalling technology and components for a 16-kilometre extension of two subway lines in the Greek capital.

The subway extension was designed to help alleviate the traffic chaos in Athens, reducing the number of cars on the city’s streets and cutting carbon emissions, Siemens said.

Construction is expected to begin next year.

The Handelsblatt business-focussed newspaper said on Wednesday that the Greeks had got a bargain, as around 70 percent of the project was being financed via EU funding – while Siemens should thus have no concerns about being paid.

A years-long row between the German company and the Greek government over bribery payments to Greek officials was settled just a few weeks ago. Siemens paid €90 million to the Greek government to help it fight corruption and a further €80 million to help it pay off debts.

Former Greek minister in further German bribery case

In a further Greek-German corruption case, former Greek Defence Minister Akis Tsochatzopoulos was arrested on Wednesday in connection with the purchase of German submarines.

He is accused of accepting bribes in the Greek purchase of four submarines worth €2.85 billion in 2000. German investigators concluded that the former MAN subsidiary Ferrostaal had paid millions of euros in bribes in connection with the deal.

Ferrostaal has already paid nearly €140 in fines while two of its former managers were jailed for two years in December 2011, and both fined.

The Local/AFP/hc

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‘We’ll continue our protests’: Environmental activists confront Siemens bosses in Munich

Siemens chief executive Joe Kaeser faced environmental protests inside and outside the group's annual shareholder meeting on Wednesday.

'We'll continue our protests': Environmental activists confront Siemens bosses in Munich
Demonstrators in Munich on Wednesday. Photo: DPA

Outraged by the group's sticking to a contract to supply rail equipment to a massive Australian coal mining project, demonstrators were rallying outside the Munich Olympiahalle ahead of the 10:00am kickoff.

A group of around 100 were on the scene from early in the morning, some forming a human chain.

Late Tuesday, Greenpeace had draped a banner from the company's headquarters reading “Bush fires start here”.

“We will continue our protests for as long as Siemens doesn't back down,” said Helena Marschall, a representative of the movement, at a Tuesday press conference.

Marschall herself is slated to speak inside the venue later Wednesday, while the demonstrators plan to urge the company to “abandon coal” at a larger protest in the afternoon.

Kaeser kept activists and observers on tenterhooks for weeks as he decided whether to uphold a contract with India's Adani group related to its Carmichael mine project in Australia.

In the end, he stuck to Siemens' agreement to supply the rail signalling equipment for the massive open-cast mine, not far from the iconic natural landmark of the Great Barrier Reef.

READ ALSO: Outrage in Germany as Siemens back Aussie mine project

'Fulfil contractual obligations'

Groups like Extinction Rebellion and Fridays for Future have homed in on the shareholder meeting as an opportunity to renew the pressure on Siemens.

“What's more important: a small financial loss in the short term, or the disastrous consequences such a project will have for generations?” Marschall said.

She and other environmentalists have been invited to speak inside the cordon by a group of Siemens shareholders.

In mid-January, CEO Kaeser met leading German Fridays for Future activist Luisa Neubauer after protests across the country against Siemens.

But he later said in a statement: “We must fulfil our contractual obligations” relating to the 18-million-euro ($22 million) deal.

Protesters at the meeting. Photo: DPA

“Only being a credible partner whose word counts also ensures that we can remain an effective partner for a greener future,” Kaeser insisted.

Nevertheless, the company plans to create a “Sustainability Committee” with powers to block environmentally questionable projects.

Siemens says it backs the 2015 Paris Agreement and aims to become carbon-neutral by 2030.

27 mn tonnes of coal

The open-cut Carmichael mine is set to become operational next year and produce up to 27 million tonnes of coal annually.

Adani spent years trying to secure private finance for the coal mine before announcing in 2018 it was self-financing a trimmed-down, $2 billion version of the  project.

Supporters say the mine will bring hundreds of much-needed jobs to rural Queensland in eastern Australia.

But conservationists say the project threatens local vulnerable species and notes that the coal will have to be shipped from a port near the already damaged Great Barrier Reef.

Much of the coal from the mine will be burned in India, a country with some of the world's highest levels of air pollution.

By Ralf Isermann with Tom Barfield in Frankfurt