The Munich-based company confirmed Thursday it has agreed to pay the sum over 15 years to help programs run by the United Nations and Transparency International aimed at fighting graft.

Siemens must also refrain from bidding for business from the Washington-based World Bank for two years as part of its punishment.

"The World Bank Group today announced a comprehensive settlement with Siemens ... in the wake of the company's acknowledged past misconduct in its global business and a World Bank investigation into corruption in a project in Russia involving a Siemens subsidiary," the bank said.

"As part of the settlement, Siemens has also agreed to co-operate to change industry practices, clean up procurement practices and engage in collective action with the World Bank Group to fight fraud and corruption."

In December last year the conglomerate was fined a record $1.4 billion by German and US authorities after pleading guilty to corruption charges.

Operations at Siemens were put under the microscope after it became embroiled in the bribery scandal in November 2006, leading to investigations in at least a dozen countries.

The company is alleged to have bribed officials approximately 4,000 times to the tune of 1.3 billion euros between 2000 and 2006 with the goal of winning contracts abroad.

Siemens, which employs some 400,000 people worldwide, found in an internal investigation that the practice was widespread across its numerous divisions.

"This settlement provides significant consequences for past wrongdoing by Siemens," said Leonard McCarthy, Integrity Vice President at the World Bank.

dfm/AFP/AP
Editor: Michael Lawton