Corruption Probe: Rolls-Royce to Pay US$812M, China Deals Involved

Rolls-Royce has agreed to pay more than US$812 million to settle bribe claims with U.S., British and other authorities, the firm said Monday.

The Serious Fraud Office (SFO) in the U.K.—the country’s corruption investigatorstarted to examine the engineering group’s wrongdoings that involved contracts it signed with airlines in China to supply engines for new jets and business dealings in Indonesia.

According to the company, the case involved intermediaries in a number of overseas markets.

The investigation by the SFO and regulators of other countries urged the company to order an outside review of its business practices, resulting in its cut-back on the use of middlemen in securing overseas deals.

The biggest payment—to be paid over five years—will be to the U.K. government, totaling £497 million (US$602 million), plus interest, in addition to a payment to cover costs. The U.S. Justice Department will be paid US$170 million, Rolls-Royce said, with Brazil’s Ministério Público Federal set to receive US$25.6 million under the agreement.

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