Rolls-Royce Agrees To Fines In Bribery, Corruption Case

16 January 2017

BY Ian Cameron

Engine-builder Rolls-Royce said it has, in principle, reached a Deferred Prosecution Agreement (DPA) with the UK Serious Fraud Office (SFO), which was the subject of a preliminary court ruling today. The proposed DPA is subject to final judicial approval and the SFO and Rolls-Royce will appear at court on Jan. 17 to seek this approval.

In addition to the agreement with the SFO, Rolls-Royce has also reached a DPA with the U.S. Department of Justice (DoJ) and a Leniency Agreement with Brazil’s Ministério Público Federal (MPF).

Rolls-Royce said it has co-operated fully with the authorities and will continue to do so.

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 which result in the suspension of a prosecution provided that the company fulfils certain requirements, including the payment of a financial penalty, the company said.

In total, these agreements, if finalized, would result in the payment of approximately £671m (approximately US$809 million). Under the terms of the agreements with the DoJ and MPF, Rolls-Royce has agreed to make payments to the DoJ totaling US$169,917,710 and to the MPF totalling US$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.

As a result, total payments by Rolls-Royce in the first year of all three agreements would be £293m, it said.

Rolls-Royce added that it will report full year 2016 results on Feb. 14 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, the company said.

STAY CONNECTED



Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.

Sign up

POWER SOURCING GUIDE

The trusted reference and buyer’s guide for 83 years

The original “desktop search engine,” guiding nearly 10,000 users in more than 90 countries it is the primary reference for specifications and details on all the components that go into engine systems.

Visit Now

CONNECT WITH THE TEAM
Becky Schultz Vice President of Content Tel: +1 480 408 9774 E-mail: [email protected]
Julian Buckley Editor Tel: +44 (0) 1892 784088 E-mail: [email protected]
Chad Elmore Managing Editor Tel: +1 262 754 4114 E-mail: [email protected]
Josh Kunz Power Progress Brand Manager Tel: +1 414 379 2672 E-mail: [email protected]
Roberta Prandi Power Progress International Brand Manager Tel: +39 334 6538183 E-mail: [email protected]
CONNECT WITH SOCIAL MEDIA