Rolls-Royce warns it may face corruption charges

Aircraft engine maker Rolls-Royce said it may be prosecuted over alleged "malpractice" in Indonesia and China after passing on information related to bribery concerns to Britain's fraud office. "It is too early to predict the outcomes, but these could include the prosecution of individuals and of the company," Rolls-Royce said in a statement, released on Thursday. The British group said it had "passed information to the Serious Fraud Office (SFO) relating to concerns about bribery and corruption involving intermediaries in overseas markets." It added: "This follows a request for information from the SFO about allegations of malpractice in Indonesia and China. Investigations by Rolls-Royce have identified matters of concern in these, and in other overseas markets." Rolls-Royce said it would co-operate fully with the SFO. "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," said Rolls-Royce chief executive John Rishton. "This is a company with exceptional prospects and I will not accept any behaviour that undermines its future success," he said in the statement. Rolls-Royce added that it had significantly strengthened its compliance procedures in recent years, including the introduction of a new ethics code. "As a further measure, Rolls-Royce will appoint an independent senior figure who will lead a review of current procedures," it announced on Thursday.