Rolls-Royce has said it is in talks with the United Kingdom's Serious Fraud Office (SFO) over possible bribery and corruption. "It is too early to predict the outcomes, but these could include the prosecution of individuals and of the company," the British firm said. The aircraft engine manufacturer said it had passed on information about alleged malpractice by intermediaries.
It followed a request from the SFO for information about possible bribe-paying in Indonesia and China. The BBC understands that the request prompted Rolls-Royce to bring in a legal firm to conduct an internal investigation earlier this year, which uncovered potential misbehaviour in other countries as well as the two named by the SFO.
The "intermediaries" involved are local companies that provide sales and distribution, and repair and maintenance services for Rolls-Royce in countries in which the UK firm does not have enough of its own people on the ground. Some of the allegations date back more than ten years. The company was keen to highlight that it has strengthened its internal compliance rules in the last five years, including the creation of a new chief compliance officer role in 2010.
Shares in the company fell five per cent at the start of trading in London yesterday, before partially rebounding. Rolls-Royce said it was co-operating fully with the investigation. "I want to make it crystal clear that neither I nor the board will tolerate improper business conduct of any sort and will take all necessary action to ensure compliance," said chief executive John Rishton.
"This is a company with exceptional prospects, and I will not accept any behaviour that undermines its future success."
BBC