Indian authorities push forward with “graft” probe into BAE Systems and Rolls-Royce
INDIAN authorities yesterday took the next step in a long-running, historic case against BAE Systems and Rolls-Royce over alleged graft almost twenty years ago.
The authorities allege a “criminal conspiracy” related to the purchase of training jets in 2005, with Indian prosecutors saying in a document seen by Reuters that the deal was done as a result of “huge bribes, commissions and kickbacks.”
The allegations relate to an investigation by the Serious Fraud Office here in 2012 related to deals made by Rolls-Royce in countries including China, Indonesia, Malaysia and Thailand, which was settled with a deferred prosecution agreement and a £497m fine in 2017.
“Rolls-Royce plc is continuing to assist the Indian authorities. The allegations being investigated by the CBI were disclosed in the Deferred Prosecution Agreement agreed with the UK’s Serious Fraud office in 2017. Rolls-Royce today is a fundamentally different business. We will not tolerate business misconduct of any sort and are committed to maintaining high ethical standards. India remains an important market for Rolls-Royce and we have a valued ecosystem of skilled people and partners in the country,” a Rolls-Royce spokesperson told City PM
A BAE spokesperson said it was “committed to maintaining high standards of ethical conduct” and said it would be “inappropriate” to comment on an ongoing probe.