Rolls-Royce pays £671m to settle global bribery claim

ROLLS-ROYCE has agreed to pay a record £671million to British, US and Brazilian authorities to settle bribery and corruption claims.

The engineering giant has agreed voluntary settlements over allegations it used middlemen to bribe officials to secure contracts in countries including China and Indonesia.

The deals with the Serious Fraud Office (SFO), US Department of Justice and Brazilian investigators mean it will not be prosecuted over the claims.

Rolls-Royce is due to appear at London’s Royal Courts of Justice this morning to seek approval for its £497million settlement with the SFO, the largest out-of-court settlement for the agency.

The firm has also agreed to make payments of £140million to US investigators and £21.2million in Brazil, plus interest.

Rolls-Royce has major contracts across the globe, making plane engines and military equipment. The allegations involve the use of intermediaries in countries where the firm does not have enough of its own employees.

Rolls-Royce has issued its fifth profit warnings in 18 months and appointed a new chief executive tasked with a clean-up.

Lisa Osofsky, European chairman of Exiger, a financial crime and risk adviser, said: ‘This sends a clear signal that the UK means business in cracking down on global bribery and corruption.’

Alex Brummer – Page 63