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Rolls-Royce deferred prosecution agreements in the UK, US and Brazil (2017)

Last checked: 22 October 2026 · Case records

On 17 January 2017 Sir Brian Leveson, President of the Queen's Bench Division, approved a deferred prosecution agreement between the Serious Fraud Office and Rolls-Royce plc 1. It covered 12 counts, including conspiracy to corrupt and failure to prevent bribery, and required £258,170,000 in disgorgement and a £239,082,645 penalty 1. A DPA suspends prosecution. It is not a conviction. Rolls-Royce reached a DOJ deferred prosecution agreement and a Brazilian agreement 4. DOJ said the total exceeded US$800 million 4.
Resolution type
Deferred prosecution agreements with the SFO and DOJ, and an agreement with Brazil's Ministério Público Federal 1,4
UK approval
17 January 2017, Southwark Crown Court sitting with Sir Brian Leveson P, case U20170036 1
Parties (UK)
Serious Fraud Office v Rolls-Royce plc and Rolls-Royce Energy Systems Inc 1
UK amount
Disgorgement £258,170,000 plus financial penalty £239,082,645, total £497,252,645, plus SFO costs of £12,960,754 1
US amount
US$169,917,710 payable to the US after a US$25,579,170 credit for the Brazil payment 4
Global total
More than US$800 million, per DOJ 4. £671m at then-current exchange rates, per company statement 5
UK offences
Conspiracy to corrupt, failure to prevent bribery under Bribery Act 2010 section 7, and false accounting 1,6
Admission
UK DPA based on an agreed statement of facts 1. DOJ says Rolls-Royce admitted using intermediaries to bribe officials 4
UK term
Five years from the declaration, or four if the SFO confirms in writing that the agreement has concluded through payment 1
Individuals
SFO announced no prosecution of individuals on 22 February 2019 3

The UK DPA

The SFO's case was heard at Southwark Crown Court under case number U20170036 1. Sir Brian Leveson made the final declaration approving the DPA on 17 January 2017 1. The SFO case page says its investigation lasted four years 2.

The draft indictment listed 12 counts 1. Six were conspiracy to corrupt under section 1 of the Criminal Law Act 1977, five were failure to prevent bribery under section 7 of the Bribery Act 2010, and one was false accounting under section 17(1)(a) of the Theft Act 1968 1. Section 7 makes a commercial organisation guilty if an associated person bribes another to obtain or retain business or an advantage for it 6. It is a defence to prove adequate procedures to prevent such conduct 6.

The counts concerned conduct in Nigeria, Indonesia, Russia, Thailand, India, China and Malaysia 1.

UK financial terms

The judgment says the sums are payable in four instalments, with interest on unpaid amounts from 30 June 2017 1. The SFO case page gives the costs as about £13m 2. The company statement lists payment dates of 30 June 2017, 31 January 2019, 31 January 2020 and 31 January 2021 5.

ItemAmount
Disgorgement of profit 1£258,170,000 1
Financial penalty 1£239,082,645 1
Total of disgorgement and penalty 1£497,252,645 1
SFO costs 1£12,960,754 1

The US and Brazil agreements

DOJ filed a criminal information in the Southern District of Ohio on 20 December 2016 charging conspiracy to violate the anti-bribery provisions of the FCPA 4. DOJ said Rolls-Royce "conspired to violate the Foreign Corrupt Practices Act (FCPA) by paying more than $35 million in bribes" between 2000 and 2013 4.

DOJ said the DPA criminal penalty was US$195,496,880 before a US$25,579,170 credit for the penalty paid to Brazil's Ministério Público Federal, leaving US$169,917,710 payable to the US 4. DOJ said Rolls-Royce admitted using intermediaries to bribe officials in Thailand, Brazil, Kazakhstan, Azerbaijan, Angola and Iraq 4. DOJ said that under the SFO agreement it admitted further conduct in China, India, Indonesia, Malaysia, Nigeria, Russia and Thailand 4.

The company statement gives the Brazil payment as US$25,579,179 5. This differs by US$9 from the DOJ figure of US$25,579,170 4,5.

Admission and statements

A UK DPA must contain a statement of facts agreed between the parties, and the judgment records that one was agreed 1. The judgment notes that individuals are not named in it 1. In approving the DPA, the judge said "Rolls-Royce is no longer the company that once it was" 1.

In a company statement on 17 January 2017, chief executive Warren East described the conduct as "completely unacceptable" and said "we apologise unreservedly for it" 5. Chairman Ian Davis said "We have co-operated fully with the authorities and will continue to do so" 5.

Status

The DPA required Rolls-Royce to complete a compliance programme at its own expense, following recommendations by Lord Gold, who reports to the SFO 1. On 22 February 2019 the SFO said "there will be no prosecution of individuals associated with the company" 3. Director Lisa Osofsky cited insufficient evidence or the public interest 3. The same release said "Rolls-Royce is continuing to comply with the terms of the Deferred Prosecution Agreement" 3. No SFO document confirming the date the DPA ended was reached, so this page does not report it.

Common questions

Was Rolls-Royce convicted of bribery?

No. A DPA suspends prosecution on agreed terms. The UK DPA was approved by the court on 17 January 2017 1.

How much did Rolls-Royce pay the SFO?

£497,252,645 in disgorgement and penalty, plus £12,960,754 in SFO costs 1.

Did Rolls-Royce apologise?

Company statement: chief executive Warren East said "we apologise unreservedly for it" 5.

Were any Rolls-Royce employees prosecuted by the SFO?

No. The SFO said on 22 February 2019 that there would be no prosecution of individuals 3.

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Sources

  1. Courts and Tribunals Judiciary: Serious Fraud Office v Rolls-Royce plc and Rolls-Royce Energy Systems Inc, approved judgment (17 January 2017)
  2. Serious Fraud Office: Rolls-Royce plc case page (Welsh-language site, last modified 17 January 2017)
  3. Serious Fraud Office: SFO closes GlaxoSmithKline investigation and investigation into Rolls-Royce individuals (22 February 2019)
  4. U.S. Department of Justice: Rolls-Royce plc Agrees to Pay $170 Million Criminal Penalty to Resolve Foreign Corrupt Practices Act Case (press release 17-074, updated 3 October 2017)
  5. Rolls-Royce plc, company statement: Rolls-Royce completes agreements with investigating authorities (17 January 2017)
  6. legislation.gov.uk: Bribery Act 2010, section 7

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