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. Last Updated: 07/27/2016

Siemens Managers Admit Bribing Russian Officials

Representatives of German electronics and engineering group Siemens arrested in a bribe scandal have confessed to bribing Russian telecoms companies and authorities to win lucrative contracts, Vedomosti reported Monday, citing German newspaper S?ddeutsche Zeitung.

One of the two former executives questioned by prosecutors last week said he was personally involved in paying Russians for services disguised as consulting fees. The sums were bribes meant to ease winning orders, Vedomosti said.

The other suspect, who was for many years in charge of sales in the CIS, also gave "exhaustive evidence" to prosecutors, the newspaper said.

According to the suspects, Siemens spent close to 10 million euros ($13.4 million) per year on bribes and kickbacks in the CIS, adding that most of the money went to greasing the palms of officials and even members of the intelligence services.

Siemens' Munich office confirmed that two current and former managers of the company had been arrested as part of the ongoing investigation, Vedomosti reported.

Employees at Siemens office in Moscow declined to comment Monday.

The German investigation started in November last year, when prosecutors raided the offices and homes of a number of Siemens employees amid suspicions of creating slush funds used in bribing to obtain contracts abroad.

Siemens reported revenues of more than 1.6 billion euros ($2.1 billion) in Russia last year.