Under CBI scanner in India, Rolls-Royce also facing similar charges in UK

LONDON: Rolls-Royce, which now faces a CBI inquiry in India in connection to a defence scam, is undergoing a similar investigation in UK for being involved in "bribery and corruption in overseas markets".

Britain's Serious Frauds Office (SFO) confirmed that the directorate has opened a criminal investigation into allegations of bribery and corruption at Rolls-Royce — the aero-engine manufacturer.

India on Sunday revealed that Rolls-Royce may have committed irregularities and violated contractual provisions to bag contracts worth over Rs 10,000 crore from 2007 to 2011 in India.

The company admitted in UK that it was facing investigation from the SFO.

In a statement made recently, it said that "Further to our announcement relating to concerns about bribery and corruption in overseas markets, we have been informed by the Serious Fraud Office that it has now commenced a formal investigation into these matters."

Sources say that the investigations in UK are related to bribery cases in early 2012 in Indonesia and China.

Reports say that Dick Taylor, a former Rolls-Royce employee, alleged that the company handed a $20m bribe and a blue Rolls-Royce car to Tommy Suharto, the son of Indonesia's former dictator, General Suharto, in return for persuading the country's flag-carrier, Garuda, to buy Roll-Royce's Trent 700 engines for its Airbus A330 wide-bodied aircraft.

The company also faces investigation in China for complaints of having made payments in return for a 2005 contract with Air China and a deal with China Eastern Airlines in 2010.

Rolls-Royce, meanwhile, says that it has significantly strengthened its compliance procedures in recent years, including a new Global Ethics Code and a new Intermediaries Policy.

It has also expanded the compliance function.

John Rishton, Rolls-Royce chief executive said that, "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."

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 4,000 marine customers, including 70 navies and energy customers in more than 80 countries earned revenue of £11.3 billion in 2011.