Rolls-Royce ‘persecution’ as SFO widens bribery probe

INVESTIGATORS were yes- terday accused of persecuting beleaguered engineering giant Rolls-Royce as it emerged they had widened an investigation into alleged corruption.

Shares in the blue chip firm slumped after sources said the Serious Fraud Office was now probing projects carried out years ago in Nigeria.

The SFO is already looking into claims of wrongdoing by Rolls in Brazil, Indonesia and China.

According to reports, investigators are examining claims that Rolls- Royce and its agents bribed government officials in the African nation in relation to energy contracts up to 2013.

It will be a heavy blow for the FTSE 100 company, which is embarking on a turnaround under chief executive Warren East following a string of profit warnings.

David Buik, a veteran market commentator at stockbroker Panmure Gordon, said: ‘In my opinion, there’s an inability on the part of investigators to understand different cultures and the way business is done.

‘Rolls-Royce is an easy sitting duck for investigators – it’s a company under extreme duress.’ The SFO investigation also features a Nigerian company called PSL Engineering & Control.

It is believed to have worked with Rolls-Royce on gas turbines for electricity stations, including at the scandal- hit Oghareki Power Plant.

This project was launched in 2009 and has since cost more than £ 68m, but is still not finished.

Its lead developer is Davnotch Nigeria, which was founded by politician Victor Ochei who has since been accused of a conflict of interest.

Davnotch has denied that it acted improperly.

Rolls no longer works with PSL, which said it was not aware of any investigation. The SFO declined to comment.

A Rolls-Royce spokesman said: ‘We do not comment on the subject of ongoing investigations nor on the countries in which those investigations are being conducted. We have made it clear that we will not tolerate business misconduct of any kind.’

Shares closed down 3.3pc, or 21.5p, at 634.5p.