Siemens defendant's evidence "started avalanche"

By Jens Hack

MUNICH, Germany (Reuters) - The defendant in the first criminal trial over suspected bribery at German engineering group Siemens AG (SIEGn.DE) sparked investigations that now encompass about 100 suspects, a Munich court heard.

Reinhard Siekaczek, who has admitted building a system of slush funds and mailbox companies for Siemens, had rushed on his arrest to provide names of those who had allegedly known about the corrupt practices, a witness said.

Hildegard Haeumler-Hoesl, a Munich prosecutor called as a witness on Wednesday, said Siekaczek had implicated dozens of colleagues when he was arrested on an anonymous tip-off in 2005.

Later, the 57-year-old former sales manager at Siemens' telecoms equipment division brought prosecutors two suitcases full of documents and composed a "list of those in the know," including well-known managers at the time.

"Mr Siekaczek started an avalanche," Haeumler-Hoesl said.

Munich prosecutors are meantime investigating almost 300 suspects, including about 100 relating to Siekaczek's case.

The case involving at least 1.3 billion euros ($2 billion) in suspect payments, according to Siemens' own estimate, has also sparked investigations by the U.S. Department of Justice and the Securities and Exchange Commission, among other authorities.

Such probes could lead to Siemens being banned from bidding for certain contracts in the United States and elsewhere.