Rolls-Royce flags up concerns about corruption in overseas markets

MIDLANDS power systems giant Rolls-Royce has passed information to the Serious Fraud Office (SFO) relating to concerns about bribery and corruption involving intermediaries in overseas markets.

This follows a request for information from the SFO about allegations of malpractice in Indonesia and China. Investigations by Rolls-Royce have identified matters of concern in these, and in other overseas markets.

Rolls-Royce says it is too early to predict the outcome of these disclosures but stressed that it will co-operate fully with any investigation.

The firm says it has significantly strengthened its compliance procedures in recent years, including the introduction of a new global ethics code and a new intermediaries policy. It has also expanded its compliance function.

As a further measure, Rolls-Royce says it will appoint an independent senior figure who will lead a review of current procedures and report to the ethics committee of the board.

John Rishton, Rolls-Royce chief executive, said: “I want to make it crystal clear that neither I nor the Board will tolerate improper business conduct of any sort and will take all necessary action to ensure compliance.

“This is a company with exceptional prospects and I will not accept any behaviour that undermines its future success.”

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