SFO investigates Rolls-Royce over bribery claims

23rd Dec 2013 15:34

Rolls-Royce is under investigation by the Serious Fraud Office (SFO) over allegations of bribery and corruption.The engine maker has been accused of using middle-men in winning multi-billion pound contracts in Indonesia, China and elsewhere for more than 20 years.Whistleblower and former employee Dick Taylor claims, among other things, that Rolls Royce had handed a $20m bribe and a blue Rolls-Royce car to Tommy Suharto, the youngest son of the late Indonesian dictator. Suharto is understood to have helped persuade the country's flag-carrier Garuda to buy Rolls' Trent 700 engine for Airbus A330 aircraft in 1990. Suharto denied the allegation last month in a surprise intervention.Rolls said: "Further to our announcement of December 6th 2012 relating to concerns about bribery and corruption in overseas markets, we have been informed by the SFO that it has now commenced a formal investigation into these matters."The company said a year ago that it had "passed information" to the SFO following a request from the agency for material relating to "allegations of malpractice in Indonesia and China".Rolls has insisted it would fully co-operate with the agency in its inquiry and reduce its use of intermediaries in contract negotiations. In January, the firm hired Conservative peer Lord Gold to conduct a review of all of its business practices. Gold's review is continuing.RD