Click ME to close the menu.

Log In to MTD Channels to access your customer cockpit and see content more relevent to you.

Rolls Royce Settles £671m Bribery Case

Rolls Royce Settles £671m Bribery Case

Added to MTDCNC by MTDCNC on 17 January 2017

As one of the UK's largest manufacturing businesses, Rolls-Royce has agreed to pay £671m to settle bribery and corruption cases with UK and US authorities.

The aerospace giant has settled to pay £497m plus costs to the Serious Fraud Office (SFO) as the result of an investigation of wrongdoing overseas that dates back to 2012. The SFO asked Rolls Royce for information about possible bribery in China, Indonesia and other markets and the company has now said it has also agreed to pay £141m to the US Department of Justice.

In reaching the Deferred Prosecution Agreement (DPA) with the UK Serious Fraud Office (SFO), Rolls-Royce has also reached a DPA with the US Department of Justice (DoJ) and a Leniency Agreement with Brazil’s Ministério Público Federal (MPF).

These agreements relate to bribery and corruption involving intermediaries in a number of overseas markets, concerns about which the company passed to the SFO from 2012 onwards.

These are voluntary agreements that result in the suspension of a prosecution provided that the company fulfils certain requirements, including the payment of a financial penalty. Under the terms of the agreements with the DoJ and MPF, Rolls-Royce has agreed to make payments to the DoJ totalling $169,917,710 and to the MPF totalling $25,579,179. Under the terms of the DPA with the SFO, Rolls-Royce will pay £497,252,645 plus interest under a schedule lasting up to five years, plus a payment in respect of the SFO’s costs.

Rolls-Royce will report full year 2016 results on 14 February 2017 and an appropriate update on the implications of these agreements will be provided at that time. Early indications are that the Group has had a good finish to the year with both profit and, in particular, cash expected to be ahead of expectations.

Building Location