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Rolls-Royce Holdings said it will take all necessary action to ensure compliance with the law following a report that it has been accused of involvement in bribery and kickbacks at Brazilian oil producer Petroleo Brasileiro SA.
Rolls-Royce, which produces gas turbines for Petrobras oil platforms, allegedly paid bribes via an agent to win a $100-million contract, the Financial Times on Monday cited testimony from a former Petrobras executive as saying.
"We want to make it crystal clear that we will not tolerate improper business conduct of any sort and will take all necessary action to ensure compliance," a spokesman for Rolls- Royce said in an e-mailed response on Monday to the article.
Petrobras, the state-run oil producer, is mired in Brazil's biggest graft scandal, with accusations that company executives took bribes from a cartel of construction companies and shared the proceeds with politicians. The case is being investigated by Brazilian securities authorities, the US Securities and Exchange Commission, and external lawyers hired by the company.
Rolls-Royce is already under investigation by the UK Serious Fraud Office for potential wrongdoing in business dealings in Asia. The investigation was made formal in December 2013 after the company in 2012 handed over details on its dealings in China and Indonesia that led to an investigation into bribery.
No contact
Rolls-Royce has not been approached by authorities in Brazil regarding bribery allegations reported in the Financial Times newspaper, the British engineering company said on Monday.
