Rolls Royce accused of corruption scandal in Brazil

Rolls-Royce is the latest major multinational to be accused of a corruption scandal.

The British firm allegedly paid bribes to secure a $100m contract with the Brazilian state-owned oil producer Petrobras.

A former Petrobras executive, Pedo Barusco, told authorities that he received at least $200,000 from Rolls-Royce to award them a contract to build gas platforms on a Petrobras oil platform.


Rolls Royce makes gas turbines for Petrobras oil platforms.

In response to the allegations, a Rolls-Royce spokesperson said in a statement:

“We have not received details of the allegations made in recent press reports, nor have we been approached by the authorities in Brazil.”

“We want to make it crystal clear that we will not tolerate improper business conduct of any sort and will take all necessary action to ensure compliance.”

Rolls Royce, led by chief executive John Rishton, is already under investigation by the Serious Fraud Office over possible bribery and corruption in China and Indonesia.

The company has been operating in Brazil for over five decades and Petrobras has been a client for more than ten years. The Brazilian company does business with Rolls Royce for its gas turbines.


Petrobras corruption scandal

Petrobras has been part of a much bigger scandal causing six top executives, including its former chief executive, to step down.

Authorities have said that Petrobas executives approved inflated contracts to suppliers and subcontractors in return for bribes.

According to International Business Times, “Rolls Royce is one of 232 companies allegedly caught up in the affair.”

Police have initiated investigations into around 150 executives and Petrobras directors. Around 80 people have been charged with corruption so far, Brazilian officials have said.