Serious Fraud Office to investigate Rolls-Royce's intermediaries

Power systems giant Rolls-Royce is to report to the Serious Fraud Office (SFO) after matters of bribery and corruption involving so-called 'intermediaries' were discovered in Indonesia and China.

The company said that it has passed information to the SFO following allegations of malpractice in overseas markets.

In a statement on Thursday morning, the firm said: "The consequence of these disclosures will be decided by the regulatory authorities. It is too early to predict the outcomes, but these could include the prosecution of individuals and of the company. We will cooperate fully."

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Rolls-Royce stressed that it had "significantly strengthened" its compliance procedures in recent years but, as a further measure, will appoint an independent senior figure to lead a review.

Commenting on the issue, Rolls-Royce's Chief Executive John Rishton 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".