Rolls-Royce to pay £671m penalty over bribery and corruption allegations

Engine manufacturing company Rolls-Royce is set to pay £671m to the UK, the US and Brazilian authorities over bribery and corruption claims.

As part of the settlement, Rolls-Royce will pay £497m plus legal costs to Britain’s Serious Fraud Office (SFO) after reaching a deferred prosecution agreement (DPA).

A DPA was also struck with the US Department of Justice (DoJ), and a leniency agreement with Brazil’s Ministerio Publico Federal (MPF).

Under the terms of the DPA, in which Rolls-Royce said the fines were “voluntary agreements”, the company has secured a suspended prosecution as long as the payment of the penalty is made.

Officials within the firm first passed on information to the SFO in 2012, which sparked an investigation after it was claimed that the engineering group paid bribes to secure contracts in countries around the world.

The engineering group has also agreed to make payments to the DoJ totalling £140m and the amount of £21.2m to the MPF.

Rolls-Royce will pay the amount over a five year period, with £293m being paid in the first year of all three agreements.

The company, which makes engines for military jets, ships and submarines, employs more than 50,000 people in over 46 countries.

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