European engineering giant Siemens faces the prospect of legal action from the Brazilian government following accusations of price fixing during the bidding process for the construction of the metro and train systems of the cities of Sao Paulo and Brasilia.

The government of the state of Sao Paulo announced in a statement on its official website that Siemens had confessed to authorities in May of this year that it had participated in the cartel. Gerald Alckmin, governor of the state of Sao Paulo, told local media that Siemens is accused…