Rolls-Royce says it has passed information to the Serious Fraud Office (SFO) relating to concerns about bribery and corruption involving intermediaries in overseas markets. This follows a request for information from the SFO about allegations of malpractice in Indonesia and China. Internal investigations at Rolls-Royce have themselves identified matters of concern in these, and in other overseas markets.

The consequence of these disclosures will be decided by the regulatory authorities, and could the prosecution of individuals and of the company.

Commenting on developments, John Rishton, Rolls-Royce Chief Executive, said: “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. This is a company with exceptional prospects and I will not accept any behaviour that undermines its future success".

Rolls-Royce said in a statement that it intends to appoint an independent figure to lead a review of current procedures, adding that it had significantly strengthened its compliance procedures in recent years, including the expansion of its compliance function.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 4,000 marine customers, including 70 navies, and energy customers in more than 80 countries. Annual underlying revenues were £11.3 billion in 2011, of which more than half came from the provision of services. Rolls-Royce employs over 40,000 people in offices, manufacturing and service facilities in over 50 countries. Over 11,000 of these employees are engineers.

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