Prosecutors said Friday that they have opened administrative proceedings against former Siemens chief executive and board chairman Heinrich von Pierer on suspicion of possible violation of oversight duty.
However, they stopped short of launching a criminal investigation against the former company boss in the scandal over corruption and bribery at the Munich-based conglomerate, saying the evidence they found did not indicate criminal conduct that would warrant a felony investigation.
Administrative proceedings can lead to fines but not imprisonment.
Munich prosecutors said in a statement that they have opened proceedings against von Pierer and other former company officials on suspicion of possible "violation of duty of oversight in companies."
The statement did not identify the other ex-officials, saying only that currently active management and supervisory board members were not among them.
Prosecutors say that they found no "sufficient indications of criminally relevant behavior" that would have justified opening a criminal investigation against von Pierer.
Von Pierer's lawyer, Winfried Seibert, said in a brief statement that his client "takes note of this decision and continues to be ready to cooperate fully with prosecutors."
Siemens has acknowledged dubious payments in the corruption case that came to light last year of up to euro1.3 billion (US$2 billion).
Speculation swirled that prosecutors might move against von Pierer in the long-running affair when German media reported last month that an official had linked him to alleged wrongdoing.
Von Pierer has steadfastly denied any wrongdoing. He served as Siemens CEO until 2005, then became head of its supervisory board _ the German equivalent of a board of directors. He stepped down last year _ as did his successor as CEO, Klaus Kleinfeld, who was replaced by Peter Loescher.
Last month, Munich prosecutors interviewed von Pierer, long one of corporate Germany's most-prominent leaders, but gave no details.
Siemens said Friday that it welcomed prosecutors' decision to determine whether former officials failed to fulfill their duties, and stressed that it will cooperate.
"With a view to possible consequences of the investigation for the company, Siemens will examine all necessary measures" to defend its interests, it said in a statement. "This _ as already announced _ includes the examination of possible damages claims."
Siemens, which makes everything from wind turbines to trams, agreed in October to pay a euro201 million (US$309 million) fine to bring an end to some legal proceedings in Germany related to the investigation.
Siemens' own investigation has found evidence of violations across the company and in several countries.
In a summary of the Siemens-commissioned report released April 29, Debevoise & Plimpton LLP said it examined business transactions that took place between 1999 and 2006, an found that "domestic as well as foreign compliance regulations have been violated."
Several different countries, including the U.S., Switzerland, Italy and Greece, have launched investigations into suspected bribes to win contracts. Siemens also is being investigated in China, Hungary, Israel, Russia, Norway and Indonesia.
"The violations in question reflect not only outright incidents of corruption, but, in many cases, violations of regulations pertaining to internal controls and the accuracy of documentation," the report said.
The first trial related to the scandal is to open in Munich on May 26. A former top-level sales manager, identified only as Reinhard S., faces charges of complicity to fraudulent breach of trust for his role in setting up a complex network of shell corporations allegedly used to siphon off company money.
Shares of Siemens were down nearly 3 percent after Friday's announcement, falling to euro74.25 (US$113.95) in Frankfurt trading.
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