1. ITV Report

Rolls-Royce set to pay £671m to authorities over bribery and corruption claims

  • Video report by ITV News Business Editor Joel Hills

Rolls-Royce has agreed to pay £671m to Britain, the US and Brazilian authorities to settle bribery and corruption claims.

The British manufacturing giant - which is worth £13bn - is to make voluntary payments, avoiding prosecution by anti-corruption investigators.

Rolls-Royce first passed information to the UK's Serious Fraud Office (SFO) in 2012 after facing "allegations of malpractice" in Indonesia and China, sparking the launch of a formal investigation.

The SFO began probing claims that the multinational paid bribes to secure contracts in countries around the world.

Rolls-Royce has in principle reached a deferred prosecution agreement (DPA) with the SFO and the US Department of Justice (DoJ), and a leniency agreement with Brazil's Ministerio Publico Federal (MPF).

Officials for the firm said at the time its own investigations had found "matters of concern" in additional overseas markets.

The British manufacturing giant - which is worth £13bn - is to make volutary payments to authorities in three countries Credit: Press Association

Rolls-Royce said the sums were "voluntary agreements" which result in the suspension of a prosecution, provided the company fulfills certain requirements, including the payment of a financial penalty.

The firm has agreed to make payments to the DoJ totalling $169m (£140m) and to the MPF totalling $25.6m (£21.2m).

Under the terms of the DPA with the SFO, Rolls-Royce will pay £497m plus interest over five years, plus a payment in respect of the SFO's costs.

Rolls-Royce will pay £293m in the first year of all three agreements.

The firm said it has co-operated fully with the authorities and will continue to do so.

Rolls-Royce will report full-year results in February, when it will update the market on the implications of the settlements to the balance sheet.