Rolls-Royce reaches bribery settlement, agrees to indemnify Petrobras

The Federal Prosecution Service (MPF) has announced a leniency agreement with Rolls-Royce, the British holding company of the Rolls-Royce group, over illegal dealings to benefit its companies. The wrongdoing had tentacles in the Petrobras scandal investigated under Operation Car Wash. The settlement deal, signed Friday (Jan. 13) and announced Tuesday (17), is still pending authorisation.

Under the settlement, Rolls Royce has agreed to pay about $25.23 million directly to Brazil's state-run oil company Petrobras within 90 days of the ratification. This amount covers the net profit Rolls-Royce earned from six Petrobras contracts totalling $12.15 million, plus the total kickbacks paid to intermediaries hired to facilitate dealings with Petrobras, in excess of $6.23 million, and a fine equal to one time the amount of kickbacks paid to intermediaries.

Accountability

In early 2015, Rolls-Royce voluntarily provided the MPF with the results of an internal investigation conducted by a specialised firm hired by the UK carmaker. The company said it was willing to cooperate with Brazilian authorities by providing any clarifications and said it wanted to face up to its responsibility and redress the wrongdoing.

In addition to the Petrobras refund and cooperation with the investigations, the agreement has introduced measures to ensure the company employs adequate and effective integrity practices, including enhancements to Rolls-Royce's existing compliance programmes.

Overall agreement

Rolls-Royce's settlement with prosecutors are part of a broader initiative within the company. Deals have been signed in the United States and the United Kingdom, where its headquarters are located. In these countries, the company reported details on payments made to intermediaries in eleven countries as well as Brazil.

Translated by Mayra Borges