Rolls-Royce has been stung by bribery and corruption allegations involving intermediaries related to its acquisition and delivery of contracts and work in China.
A report by the UK's Sunday Times alleges that Rolls-Royce made possibly illegal payments for a 2005 contract with China's flagship airline Air China. And later in 2010 Rolls-Royce allegedly engaged in similar activities with China Eastern Airlines.
The paper reports that a possible expeditor named Chen Xin, who apparently worked for the two airlines, was arrested in 2011 in China on suspicion of accepting payments.
In a statement issued last month by John Rishton, Rolls-Royce's CEO, he stated, "I want to make it crystal clear that neither I nor the board [at Rolls-Royce] will tolerate improper business conduct of any sort and will take all necessary action to ensure compliance. This is a company with exceptional prospects and I will not accept any behaviour that undermines its future success".
The UK's Serious Fraud Office has been probing Rolls-Royce's part in the fiasco which were instigated by a Rolls-Royce whistleblower. No action has been taken yet in the UK against the company.
