Rolls-Royce to pay more than $800 million to settle bribery charges - U.S.

[webfact]

Rolls-Royce to pay more than $800 million to settle bribery charges - U.S.

By Joel Schectman

REUTERS

 

The setting sun reflects on a building at Rolls-Royce in Derby, central England , November 4, 2014. REUTERS/Darren Staples/File Photo

 

WASHINGTON (Reuters) - Rolls-Royce Plc <RR.L> agreed to pay authorities more than $800 million to resolve charges of bribing officials in six countries in schemes that lasted more than a decade, the U.S. Justice Department and UK Serious Fraud Office said in statements on Tuesday.

 

The company admitted to paying officials at state-run energy companies in Kazakhstan, Thailand, Brazil, Azerbaijan, Angola and Iraq more than $35 million in order to win contracts, the Justice Department said.

 

In a statement, the company's chief executive officer, Warren East, apologized "unreservedly" for the bribery schemes. The company had since overhauled its compliance rules and cut back on using intermediaries, the statement said.

 

Among the bribes, Rolls-Royce paid a Brazilian official $1.6 million through a middleman to win numerous oil equipment contracts from Petrobras <PETR4.SA>, U.S. authorities said.

 

The case was the third resolution related to Petrobras in the United States following a nearly three-year investigation in Brazil dubbed "Operation Car Wash" into corruption at the oil company, which has led to dozens of arrests and political upheaval in the country.

 

Petrobras did not return a request for comment.

 

In Iraq, Rolls-Royce middlemen bribed Iraqi officials after they had expressed concerns about turbines the company had sold. The Rolls-Royce bagman paid the bribe to "persuade the officials to accept the turbines" and prevent the officials from "blacklisting" Rolls-Royce from future business in Iraq, U.S. authorities said.

 

The settlement included agreements with U.S., UK and Brazilian authorities whom the company agreed to pay $170 million, 497 million British pounds ($616 million) and $25.6 million respectively, the Justice Department said.

 

In setting the penalty, the Justice Department said it weighed the fact that Rolls-Royce did not come forward with the misconduct until media reports of the allegations began to surface. But U.S. authorities also showed Rolls-Royce leniency for later cooperating with authorities and fixing problems at the company.

 

(Additional reporting by Sarah Young and Kristin Ridley in London; Editing by Lisa Shumaker and Peter Cooney)

 

-- © Copyright Reuters 2017-01-18

[kkerry]

Thailand will need to take swift action with this report of serious corruption...

 

Expect a lawsuit against Rolls Royce for defaming the image of Thailand any day now...

[Panda13]

So they essentially paid a bribe to make bribery charges go away ? On what planet is that uncorrupt ?

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[1130bobs]

you don't seem to get the major difference and how it all fits together.

 a bribe is money paid by a company direct to the politicians for a favorable action 'under the table'.  If it gets uncovered & cannot be ignored, then it is called 'corruption' by the same politicians.  Who then must work harder to get a fine from the company.  The real work then is to circumvent most or all of that fine back to the politicians either directly (paid junkets to be sure the corruption is over) or indirectly by getting more bribes in awarding these funds for new projects.

 Thats why trump knows the system so well - he was the government's customer before.  Now he runs the house from the other side.

[Panda13]

Blah, blah , blah, blah. another wannabe politician.

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[sanukjim]

The Rolls-Royce Engine Group,They make great engines but could use a lot more of training in their   bribery department. ( Damn these new hires).

[louse1953]

A bribe to pay for bribing and no jail time.

[catinthehat]

In a statement, the company's chief executive officer, Warren East, apologized "unreservedly" for the bribery schemes. The company had since overhauled its compliance rules and cut back on using intermediaries, the statement said.

 

This is all patronizing bullshit. And how did they "overhaul" and they only cut back on fixers. So they are still using smaller numbers of them. And what about jail time and fines for the top RR officials involved. Everyone should read the other post today where it spells out the entire scheme in great detail in the Thailand dealings. The top brass not only authorized it but they promoted it and approved a million in advances before any approvals were given. Then the fixer did not want that deducted from the entire amount when finally approved and paid.

 

 

In Iraq, Rolls-Royce middlemen bribed Iraqi officials after they had expressed concerns about turbines the company had sold. The Rolls-Royce bagman paid the bribe to "persuade the officials to accept the turbines" and prevent the officials from "blacklisting" Rolls-Royce from future business in Iraq, U.S. authorities said.

 

And what about the substandard equipment ?  All forgotten after the money received. And who loses? Then end user paid for a substandard product.

[pitrevie]

Brings to mind that Biblical verse, let him who is without sin cast the first stone.