Rolls-Royce agrees to pay £671m to dodge prosecution over bribery and corruption claims
Company has reached deals relating to scandals involving intermediaries in Asia
JET engine maker Rolls-Royce has agreed to pay £671 million to British, US and Brazilian authorities to settle bribery and corruption claims.
It has reached deals relating to scandals involving intermediaries in overseas markets such as Indonesia and China.
The engine maker said it has in principle reached a deferred prosecution agreement with the UK's Serious Fraud Office and the US Department of Justice, and a leniency agreement with Brazil's Ministerio Publico Federal.
The deal will go before a High Court judge for approval on Tuesday.
The company first passed information to the SFO in 2012 after facing "allegations of malpractice" in Indonesia and China, after which the fraud squad launched a formal investigation.
Officials for the firm said at the time its own investigations had found "matters of concern" in additional overseas markets.
Rolls-Royce will pay £497 million plus interest over five years, plus costs, to the UK's Serious Fraud Office.
The firm has also agreed to make payments to the DoJ totalling 169 million US dollars (£140 million) and 25.6 million US dollars (£21.2 million) to Brazil.
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The firm said it has co-operated fully with the authorities and will continue to do so.
It will report full-year results in February, when it will update the market on the implications of the settlements to the balance sheet.
Rolls-Royce said the sums were "voluntary agreements" which result in the suspension of a prosecution, provided the company fulfils certain requirements, including the payment of a financial penalty.
The firm said early indications show that the group has had a "good finish" to the year with both profit and, in particular, cash expected to come in ahead of expectations.
The SFO confirmed the agreement had been reached in principle and said approval would be sought at a public hearing scheduled at the Royal Courts of Justice on Tuesday.
Meanwhile, anti-corruption group Transparency International UK executive director Robert Barrington called for individuals to face prosecution over the case.
He said: "Ultimately, whether or not this settlement is in the public interest, the key individuals responsible for corrupt behaviour must not be allowed to evade justice.
"In order to serve as a proper deterrent for companies who think it is acceptable to do business with bribery, those involved with or who sanctioned bribery must be prosecuted individually."
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