360° Coverage : The Strange Bribery Investigation Into Rolls Royce

2 Updates

The Strange Bribery Investigation Into Rolls Royce

Dec 25 2013, 5:11am CST | by

I have to admit to being somewhat surprised about this bribery investigation into the historical actions of Rolls Royce (that’s the jet engine company, not the car one). For at least as far as I’m...

Filed under: news

 
 
 

42 weeks ago

The Strange Bribery Investigation Into Rolls Royce

Dec 25 2013, 5:11am CST | by

I have to admit to being somewhat surprised about this bribery investigation into the historical actions of Rolls Royce (that’s the jet engine company, not the car one). For at least as far as I’m aware, and I have indeed checked this against UK law in the past to find out whether I can myself offer such commissions, the behaviour being looked into wasn’t actually illegal under UK law at the time.

Here’s the basic story:

The Serious Fraud Office has launched a formal investigation into allegations of bribery and corruption at engine maker Rolls-Royce that could lead to criminal prosecutions.

OK, bribery to gain contracts is a serious charge, yes of course people should look into allegations about them.

Britain’s fraud-busting agency has spent more than a year examining claims from a whistleblower over Rolls’ use of middle-men in winning multi-million pound contracts in Indonesia, China and elsewhere, dating back more than 20 years.

And there’s the problem. Bribery inside the UK has long been a criminal offence and one that is strictly monitored and prosecuted whenever it is seen. But until the 2010 Bribery Act bribing foreigners wasn’t a criminal offence. We didn’t have anything like the US FCPA at all.

You might think this a little strange but here’s how it all worked. We all, we Brits, agree and agreed that trying to bribe someone in Britain was a very bad idea. And this is culturally as well as legally. The vast majority of people that you tried to bribe would in fact report you for having tried to bribe them. It just wasn’t part of the culture at all. However, we all also knew that that’s not quite how it worked in other parts of the world….perhaps “some” other parts of the world is more accurate. There were places where paying the middle man, or the bureaucrat, or even the government of the day, were just what was expected of all people doing business in that place at that time.

The UK attitude was therefore that bribing foreigners, if you’re in the sort of place where bribery is commonplace, was just part and parcel of the costs of doing business. Indeed, bribes were tax deductible business expenses.

Now maybe this isn’t how it should have been but this is the way that it was. At least until that 2010 Bribery Act.

So I’m afraid I don’t really understand why we have the SFO looking at possible bribery 20 years ago in Indonesia as one example. Such behaviour might have broken Indonesian law at that time (although under Suharto that’s a difficult case to make) but it wasn’t illegal under UK law at that time. So why are they investigating it?

Source: Forbes Business

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,000 by 30 per ce ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hits ho ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Depressed people, too, believe in brighter future
Toronto, Oct 21 (IANS) Like most adults, even depressed people believe in a brighter future, but for them this optimistic belief may not lead to better outcomes, found a research.
 
 
Indian-origin sisters develop tool to detect lung, heart disease
Washington, Oct 21 (IANS) Two Indian-origin high school students Ilina and Medha Krishen have developed screening tools to detect lung and heart disease using electronic stethoscopes.
 
 
Gene behind sweating disorder detected
Washington, Oct 21 (IANS) Mutation of a single gene blocks sweat production leading to an increased risk of hyperthermia, also known as heatstroke, said a study.
 
 
Comet Siding Spring nucleus relatively small: NASA
Washington, Oct 21 (IANS) NASA's Mars Reconnaissance Orbiter successfully captured views of the comet C/2013 A1 Siding Spring when it whizzed past Mars Sunday, obtaining key information about its nucleus.
 
 
 

Latest from the Network

1,074 new dengue cases in Chinese province
Beijing, Oct 18 (IANS) China's Guangdong province has reported 1,047 new cases of dengue fever, health authorities said Saturday. Six people have already died in Guangdong -- five in Guangzhou and one in adjacent...
Read more on Business Balla
 
Blake Lively 'always' wanted to be mum
Blake Lively has ''always'' wanted to be a mother. The 27-year-old actress is expecting her first child with husband Ryan Reynolds and she admits she's been dreaming of this moment since she was a youngster. Speaking...
Read more on Celebrity Balla
 
Kris Jenner 'torn apart' by Bruce's new relationship
Kris Jenner feels ''torn apart and angry'' that Bruce Jenner is dating her former assistant. The 58-year-old matriarch split from the 64-year-old Olympic gold medalist last October following 22-years of marriage but is...
Read more on Celebrity Balla
 
Cheryl Fernandez-Versini won't move to France
Cheryl Fernandez-Versini doesn't want to move to her husband's home country of France. The 'X Factor' judge, 31, who comes from Newcastle, is adamant she won't be relocating any time soon to suit her new spouse Jean-...
Read more on Celebrity Balla
 
Lance Bass sets wedding date
Lance Bass has set a date for his wedding. The former *NSYNC singer and his partner Michael Turchin, who have been dating for two-and-a-half years, are to tie the knot on December 20, 2014, a representative for the...
Read more on Celebrity Balla
 
Nepal avalanche toll reaches 39
Kathmandu, Oct 18 (IANS) At least 39 climbers died while hiking on a key Nepali route after it was hit by a major snowstorm and avalanches earlier this week, BBC reported Saturday citing officials. Over 350 stranded...
Read more on Politics Balla
 
Jake Gyllenhaal says society is complicit in 'nightcrawling'
Jake Gyllenhaal says almost everybody in society ought to relate to his new movie 'Nightcrawlers'. The eagerly-awaited film concerns those people who monitor police scanners and then race to crime scenes to film eye-...
Read more on Movie Balla
 
India eves look for first win in AFC U-16 qualifiers
Dhaka, Oct 18 (IANS) India will hope to register their first win of the 2015 Asian Football Confederation (AFC) Under-16 Women's Championship qualifiers when they take on hosts Bangladesh in a crucial encounter at the...
Read more on Sport Balla
 
Moyes mulling return to management
London, Oct 18 (IANS) Former Manchester United manager David Moyes said that he is ready to revive his managerial career six months after being sacked by the 'Red Devils'. "I am ready to return. I have enjoyed the...
Read more on Sport Balla
 
Ebola fears loom over Ghana hosting AFCON
Accra (Ghana), Oct 18 (IANS) The Ghana Medical Association (GMA) cautioned the government Saturday against hosting the 2015 African Cup of Nations (AFCON), despite a request by the Confederation of African Football (...
Read more on Sport Balla