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Last Updated: Monday, 17 December 2007, 12:28 GMT
Norwegian army blacklists Siemens
His Majesty The King of Norway's Band and Drill team
The military has not said how long it will boycott Siemens for
The Norwegian military has blacklisted Siemens for overcharging it by millions of kroner between 2000 and 2005.

An investigation last year found that Siemens Business Services in Norway had overcharged the military by 36.8m kroner (3.3m; $6.64m).

"We have a non-relationship with Siemens," said a spokesman for the defence minister.

Siemens Norway has apologised, refunded the excess and has also decided to replace its top management.

Investigation

Siemens told the Aftenposten newspaper that it had resolved the problems at its Norwegian business, but it added that it did not want to do business with the Norwegian military until an investigation into corruption there has been completed.

Last week, the Norwegian economic crime police raided the homes and offices of military personnel as part of an investigation into whether they accepted illegal trips from Siemens.

Norwegian military employees are not allowed to accept gifts in the line of duty.

"We have cleaned up the irregularities between the military and Siemens Business Services. Now we expect the military to clean up," a Siemens Norway spokesman told Aftenposten.

"While waiting for this, we have decided not to bid for any contracts," she added.



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