Serious Fraud Office v Rolls-Royce plc and Another

Southwark Crown Court, Sir Brian Leveson, President of the Queen's Bench Division, 17 January 2017

Corruption - Conspiracy to bribe - Failure to prevent bribery - Deferred Prosecution Agreements - Crime and Courts Act 2013, section 45, schedule 17 - Criminal Law Act 1977, section 1 - Prevention of Corruption Act 1906, section 1 - Bribery Act 2010, sections 1 and 7 - Criminal Procedure Rules 2015 (SI 2015 No 1490 (L 18)), Part 11

The applicant SFO applied for approval of a Deferred Prosecution Agreement ("DPA"), under para 8 of schedule 17 to the Crime and Courts Act 2013 (the "Act"), with the well-known engineering company, Rolls-Royce plc and, its Delaware incorporated subsidiary, Rolls-Royce Energy Systems Inc ("RRESI"). The conduct involved corruption in the respondent's civil aviation and defence businesses in Indonesia, Thailand, India, Russia, Nigeria, China and Malaysia and came to light following internet postings which raised concerns about the operation of its civil business in China and Indonesia. The SFO had sought information from Rolls-Royce and an internal investigation followed at an accumulated cost to the company of over £123 million. Rolls Royce had since implemented an ethics and compliance programme, dismissed various personnel and reconstituted its board and senior management team such that both the senior management and those responsible for the strategic direction of Rolls-Royce were different to those responsible for the running of the company at the time of the conduct.