Rolls-Royce has reached an agreement with the UK’s Serious Fraud Office (SFO), as well as the US Department of Justice (DoJ) and the Brazilian Federal Prosecution Service (MPF) in relation to “bribery and corruption involving intermediaries in a number of overseas markets” according to a press release from the company, issued January 17.
The agreements include a Deferred Prosecution Agreement (DPA) with the UK’s SFO, a DPA with the US DoJ, and a Leniency Agreement with Brazil’s Ministério Público Federal, following the results of an investigation by the SFO which began in 2012. Rolls-Royce have been keen to point out that the company had passed on concerns to the SFO following their request for information and that there had been “full and extraordinary co-operation” with the SFO.
In the press release, Warren East, Chief Executive, Rolls-Royce said: “The behavior uncovered in the course of the investigations by the Serious Fraud Office and other authorities is completely unacceptable and we apologize unreservedly for it. This was unworthy of everything which Rolls-Royce stands for, and that our people, customers, investors and partners rightly expect from us.
“The past practices that have been uncovered do not reflect the manner in which Rolls-Royce does business today. We now conduct ourselves in a fundamentally different way. We have zero tolerance of business misconduct of any sort”.
In addition, Ian Davis, Chairman, Rolls-Royce advised: “We have co-operated fully with the authorities and will continue to do so. The Board has taken extensive action to strengthen ethics and compliance procedures across the company so that high standards of business conduct are embedded as an essential part of the way we do business.
“We share a determination to see that Rolls-Royce comes out of this episode as a more trusted, resilient and better managed business that ‘wins right’ every time. Our underlying technologies and skills are as strong as ever and we are well positioned in long-term growth markets”.
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 has also agreed to make payments to the DoJ totaling $169,917,710 and to the MPF totaling $25,579,179.
(All figures provided based on currency exchange rates at date of publication. £1.00 = US$1.23)
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