Friday, 18 January 2013

Chinese whistleblower sues Siemens after being sacked for revealing hospital bribes


Siemens AG, Europe’s largest engineering company, has been sued by a former compliance officer in its China unit who claimed he was fired after exposing evidence of hospital kickbacks.
Meng-Lin Liu filed a whistle-blower complaint in Manhattan federal court today, claiming he uncovered a scheme in which Siemens Ltd. China submitted inflated bids to sell medical diagnostic and scanning equipment to public hospitals in China and North Korea, and then sold the equipment at reduced prices to intermediaries that charged the hospitals the full bid price.
“This had all of the hallmarks of a classic bribery or ‘kickback’ scheme and there was no legitimate explanation for the huge price differentials that existed between the prices at which Siemens sold the equipment and the prices paid by the end- user hospitals,” Liu claimed in the complaint.
Liu, who said he was hired by Siemens in March 2008, claims he was fired after presenting evidence of the scheme to Siemens China’s chief financial officer for health care. He’s seeking unspecified damages.
Alexander Becker, a spokesman for Munich-based Siemens, declined to comment on the allegations in Liu’s suit.
In 2008, Siemens paid $1.6 billion to settle bribery investigations by U.S. and German authorities.
Source: Bloomberg

6 comments:

  1. The best way to repress bribery in any sense, may it be medical-related or not, I guess, is to implement more rigid sanction and to reinforce stricter rules against this kind of act, especially when it involves public safety.

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  2. There goes another slap to the face of the medical industry. It's bad enough that getting decent medical care these days is already a tough piece of work, a luxury even; profiteering from all the trouble without considering the implications it has on patients just makes it a lot worse.

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  3. I guess those big medical equipment manufacturers ought to learn from this scenario. Yes, they are enterprising groups, but they must remember that they have corporate social responsibility to their clients and to the patients their clients serve.

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  4. That is something the medical sector doesn't need right now. With all the buzz about rising medical prices, overpriced medical equipment won't be any better. It's good that there are people standing up to this kind of injustice, though.

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  5. Another bit of medical degradation. This is a definite smudge on the medical sector, considering how bad the gunk is, as shown by the whistle-blower. It's a bit positive, though; at least they're an example to avoid.

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  6. An independent sector in a hospital should be the one doing the job for their finance department, one that has the whole time focusing on righteous financing.

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