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Rolls-Royce named in Brazilian oil company scandal

oilrigRolls-Royce has fought back against allegations of paying bribes by saying it does not “tolerate improper business conduct of any sort”.

The Financial Times reported that the firm has been implicated in the bribery scandal fascinating Brazilians over its oil company Petrobras.

Citing testimony from a former Petrobas top executive, Pedro Barusco, the FT reported allegations that Rolls-Royce paid bribes to get a contract. Mr Barusco claimed to have been paid $200,000 (£130,000) to help it get a $100m contract.

The state-controlled energy group is being investigated over a series of claims related to corruption involving foreign companies.

It is alleged that contractors paid inflated prices for contracts with funds diverted to some Petrobras directors, and to the governing Workers' Party and some of its allies.

The Workers' Party has said the claims were lies and that it only accepted legal donations.

Rolls-Royce, which makes engines for oil platforms, said: "We have not received details of the allegations made in recent press reports, nor have we been approached by the authorities in Brazil.

"We have always been clear that we will not tolerate improper business conduct of any sort and will take all necessary action to ensure compliance, including co-operating with authorities in any country."

So far, six top executives at Petrobras have resigned. Mr Barusco was arrested last November and since then struck a plea bargain deal.

Other foreign companies have been embroiled in the scandal. Alleged involvement pointed also at a Dutch ship builder and two companies from Singapore.

In the UK the Serious Fraud Office is separately investigating Rolls-Royce over possible bribery in Indonesia and China.

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