Dec 06, 2012 03:18 PM EST
Rolls-Royce Could Be Prosecuted On Charges Of Corruption And Bribery In Overseas Markets

Rolls-Royce announced on Thursday that they have handed over information to the U.K. Serious Fraud Office in regards to bribery and corruption allegations in overseas markets according to a report by Reuters.

The company said in a statement this week that the detailed report to the SFO complies with their request concerning allegations that they have been involved in illegal activity with places like Indonesia, China and other overseas areas.

"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," Chief Executive John Rishton said in a statement.

Click here to read a full press release issued by Rolls-Royce.

Rolls-Royce hired an independent body to cooperation with SFO's request and passed along their results this week. The company uses intermediaries, which could be companies or specific individuals in "countries where they do not have large-scale infrastructure" to allow or support operations according to Reuters.

Intermediaries can be used to cover tasks like sales and support contracts.

"This is a company with exceptional prospects and I will not accept any behavior that undermines its future success."

Rolls-Royce hires almost 2,000 employees across China including joint ventures and contributed 934 million pounds of revenue in 2011 according to Reuters. This would make China the fourth largest market for Rolls-Royce.

"China is involved and you can't sell anything defense-related there, so it (the probe) has to concern its civil aerospace or energy businesses."

The SFO has yet to respond on whether they are satisfied with the report compiled by Rolls-Royce or if further legal action will take place.

The aerospace and defense company dates back to 1884 when it was an electrical and mechanical business created by Henry Royce. The company first produced cars starting in 1904 until branching out into aerodynamics in 1914. 

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