Rolls-Royce named in testimony by former executive of Brazil's Petrobras as having paid bribes

Rolls-Royce named in testimony by former executive of Brazil's Petrobras as having paid bribes

17 February 2015, 08:45
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Allegation of corruption at the aircraft engine-maker Rolls-Royce spread to Brazil, adding to the woes of a group that is already involved in a Serious Fraud Office (SFO) investigation into bribery claims in China and Indonesia.

Rolls-Royce has been operating in Brazil for around 50 years in sectors that include civil aerospace, marine and energy. The company also deals with the Brazilian armed forces, whose aircraft fleet includes Hercules C130s and helicopters, which are powered by Rolls-Royce engines. The British company has been supplying Petrobras for more than a decade.

Pedro Barusco, a Petrobras veteran who has emerged as one of the investigation’s key informants, told police he personally received at least $200,000 (£130,000) from Rolls-Royce — according to court documents reported by the Financial Times.

Rolls-Royce's representative commented: “We have not received details of the allegations made in recent press reports, nor have we been approached by the authorities in Brazil.

We have always been clear that we will not tolerate improper business conduct of any sort and will take all necessary action to ensure compliance, including co-operating with authorities in any country.”

The Brazilian oil company sank in a corruption scandal in which billions of dollars were allegedly paid by companies to win contracts. The report by the Financial Times unveiled that the allegations against Rolls-Royce relate to a $100m contract.

The allegations in Brazil follow the SFO opening a formal criminal investigation into Rolls-Royce at the end of 2013, after it was claimed that the jet engine manufacturer had bribed Tommy Suharto, son of Indonesia’s former president General Suharto, with $20m and a blue Rolls-Royce car.

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