Rolls-Royce Warns Of Corruption Investigation

Rolls-Royce says it has passed information to the Serious Fraud Office (SFO) relating to concerns about bribery and corruption overseas.

It follows a request for information from the SFO about allegations of malpractice involving intermediaries in Indonesia and China.

The aerospace and defence group said it had "identified matters of concern in these, and in other overseas markets". 

In a statement, the UK-based company said it would co-operate fully with the regulatory authorities.

"It is too early to predict the outcomes, but these could include the prosecution of individuals and of the company," it said.

The chief executive of Rolls-Royce, John Rishton, added: "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."

It said it had boosted its compliance procedures in recent years, including a new ethics code and policy for intermediaries.

Rolls-Royce is due to hire an independent manager to lead a review of current procedures and report to the ethics committee of the board.

Shares in the company, which operates in more than 50 countries across the world, fell over 4.5% following the announcement.

The SFO declined to comment on the statement by Rolls Royce.