Two men arrested during SFO raids linked to Rolls-Royce
Two men have been arrested in connection with an investigation understood to be related to Rolls-Royce’s dealings in Asia.
The Serious Fraud Office said it had executed search warrants at “various properties in London” which had led to the arrests.
The SFO said it was assisted by officers from both the National Crime Agency and the City of London Police. However, it declined to comment further and Rolls-Royce also offered no comment.
The timing of the arrests, however, will come as an unwelcome distraction to the engineering firm ahead of today’s full-year results.
The world’s second-largest maker of aircraft engines has made a habit of beating expectations, and is expected to produce a solid set of numbers. Its shares have surged by 24 per cent over the past 12 months and finished 3p ahead today at 1208p.
Two days before Christmas Rolls-Royce said the SFO had launched a full-scale investigation into possible bribery and corruption in Indonesia and China.
A year earlier it said internal investigations had “identified matters of concern” in the two countries “and in other overseas markets” and said it would co-operate fully with the SFO.
Such allegations have plagued the defence industry, notably BAE Systems, whose dealings in various countries led to a £286m fine in 2010. But Rolls-Royce’s record had been largely unscathed until Dick Taylor, a retired former engineer for the company, started to raise issues about its operations in Indonesia, regularly posting his concerns on websites.
The US Department of Justice was also informed – and its involvement in any probe can cause companies major headaches because it has the reputation of putting them through the wringer.
However, experts cautioned that the SFO still faced challenges if the allegations eventually led to a prosecution.
“Unless relevant activities took place after June 2011 they won’t be covered by the Bribery Act but by the old bribery offences,” said Omar Qureshi at the law firm CMS Cameron McKenna. “These are more complex and difficult for prosecutors to prove, particularly in respect of corporates. If Rolls-Royce itself is to be prosecuted that would require evidence of senior management involvement.”
Lammily: Barbie-like doll hits Kickstarter fundraising target in a day
Belle Knox: How the porn star student from Duke University became bigger than Justin Bieber
Top 10 most expensive cities in the world: Singapore named costliest place to live – but what about London?
Oscar Pistorius trial: Neighbour feared athlete would use gun that killed his girlfriend Reeva Steenkamp to shoot himself
Channel 4 announces two-hour TV show to be broadcast 'Live from Space' later this month
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 The future of sex: The first female condoms were derided, mistrusted and shunned - but will their modern counterparts catch on?
- 2 South African rhino finally put down after roaming Kruger park for days with horn hacked off and bullet in brain
- 3 Channel 4 announces two-hour TV show to be broadcast 'Live from Space' later this month
- 4 Man stabbed with Legend of Zelda Master Sword in serious condition
- 5 Study suggests that 'gaydars' are real - at least for women
iJobs Money & Business
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...
£30000 - £40000 per annum + benefits: Pro-Recruitment Group: Personal Tax, FTS...