Rolls-Royce, the engine manufacturing company, is set to pay huge fines of £671m to the UK, US and Brazilian authorities.
The fines result from claims against the company relating to bribery and corruption and will see the sum of £497m plus legal costs being paid to the Serious Fraud Office after Rolls-Royce entered into a deferred prosecution agreement (referred to as a “DPA”). Information was passed to the Serious Fraud Office by officials within Rolls-Royce in 2012 which resulted in an investigation into claims that the company had paid bribes in order to secure contracts around the world.
As well as the agreement in the UK, a DPA was agreed with the US Department of Justice as well as a payment of £140m, and a leniency agreement with Brazil’s Ministerio Publico Federal with a payment to them of £21.2m.
Rolls-Royce says that the fines it are “voluntary agreements” and the company has been assured that it won’t be prosecuted in this matter provided that it pays the amounts it has agreed.
The payments will be made by Rolls-Royce over a five-year period starting with £293m in the first year.
This is a significant hit even for a company of the size of Rolls-Royce which employs over 50,000 people in 46 countries.
By Daniel Gardener
Subject to our terms and conditions and copyright policy.