Former Siemens CEO could face fines for lack of oversight

Prosecutors said Friday that they have opened administrative proceedings against Heinrich von Pierer, but they stopped short of launching a criminal investigation against him, citing lack of evidence over corruption and bribery at the Munich-based company.

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.

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 1.3 billion euros ($2 billion).

Von Pierer has denied any wrongdoing. He served as Siemens CEO until 2005, then became head of its supervisory board. He stepped down last year -as did his successor as CEO, Klaus Kleinfeld.

Siemens on Friday welcomed the announcement, 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.