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| 'Of the very greatest gravity’: key quotes from the Rolls-Royce bribery scandal | 'Of the very greatest gravity’: key quotes from the Rolls-Royce bribery scandal |
| (about 2 hours later) | |
| The judgments on the corruption charges against Rolls-Royce and the statement of facts behind the case clearly implicate former executives within the company. | |
| In his judgment, Lord Justice Leveson said the term “senior employees” meant “communications by an employee with a superior, or, more significantly, to identify decision-makers who may be argued to represent the corporate mind”. | In his judgment, Lord Justice Leveson said the term “senior employees” meant “communications by an employee with a superior, or, more significantly, to identify decision-makers who may be argued to represent the corporate mind”. |
| Here are some of the key quotes that highlight the involvement of senior figures within the FTSE 100 engineering group in the scandal between 1989 and 2013. | |
| Lord Justice Leveson’s overall judgment on Rolls-Royce | Lord Justice Leveson’s overall judgment on Rolls-Royce |
| “Against that background [of the size and importance of Rolls to the UK], it can properly be described as devastating and of the very greatest gravity that the conduct of this institution should fall to be examined within the context of a criminal investigation, and that the investigation (in very large part conducted and voluntarily revealed to the SFO by Rolls-Royce itself) should reveal the most serious breaches of the criminal law in the areas of bribery and corruption (some of which implicated senior management and, on the face of it, controlling minds of the company).” | “Against that background [of the size and importance of Rolls to the UK], it can properly be described as devastating and of the very greatest gravity that the conduct of this institution should fall to be examined within the context of a criminal investigation, and that the investigation (in very large part conducted and voluntarily revealed to the SFO by Rolls-Royce itself) should reveal the most serious breaches of the criminal law in the areas of bribery and corruption (some of which implicated senior management and, on the face of it, controlling minds of the company).” |
| On the charges against the company | On the charges against the company |
| “The conduct involved senior (on the face of it, very senior) Rolls-Royce employees.” | “The conduct involved senior (on the face of it, very senior) Rolls-Royce employees.” |
| Rolls-Royce’s co-operation with the Serious Fraud Office | Rolls-Royce’s co-operation with the Serious Fraud Office |
| “This has been far more extensive than was identified in the public domain; it included written reports revealing further corruption indications and a report concerning conduct Rolls-Royce had known about since 2010 and previously (under different leadership) decided not to notify.” | “This has been far more extensive than was identified in the public domain; it included written reports revealing further corruption indications and a report concerning conduct Rolls-Royce had known about since 2010 and previously (under different leadership) decided not to notify.” |
| Extract from statement of facts on the case, which was put to court by Serious Fraud Office and the company | Extract from statement of facts on the case, which was put to court by Serious Fraud Office and the company |
| “In 1999 RR [Rolls-Royce] issued its first written policy governing the use of intermediaries, administered by MS [marketing services division]. No process for due diligence was specified. Additional approval was required from a senior RR employee where the proposed payment exceeded 5% of the contract price. A revised policy in 2003 extended this additional approval process also to require approval from RR’s CEO.” | “In 1999 RR [Rolls-Royce] issued its first written policy governing the use of intermediaries, administered by MS [marketing services division]. No process for due diligence was specified. Additional approval was required from a senior RR employee where the proposed payment exceeded 5% of the contract price. A revised policy in 2003 extended this additional approval process also to require approval from RR’s CEO.” |
| Extract from statement of facts on corruption in Indonesia | Extract from statement of facts on corruption in Indonesia |
| “RR senior employees agreed to pay $2.25m and a Rolls-Royce Silver Spirit car to an intermediary or company controlled by that intermediary.” | “RR senior employees agreed to pay $2.25m and a Rolls-Royce Silver Spirit car to an intermediary or company controlled by that intermediary.” |
| More on Indonesia | More on Indonesia |
| “An internal RR memo dated 17 December 1991, which was sent to RR senior employees, noted that Intermediary 1 had interpreted a previous conversation with an RR employee as a promise to reward him with a Rolls-Royce car if the A330 [Airbus aircraft] deal was won. The memo noted that the car was not part of the CAA [commercial consulting agreement] but: “One way or another we are going to have to deliver, and recover the costs as best we can. Seen against the future business, particularly in the military field, where to [Intermediary 1] could be obstructive, the cost is not great. I am asking for the best price we can get for a Silver Sprint II.” | “An internal RR memo dated 17 December 1991, which was sent to RR senior employees, noted that Intermediary 1 had interpreted a previous conversation with an RR employee as a promise to reward him with a Rolls-Royce car if the A330 [Airbus aircraft] deal was won. The memo noted that the car was not part of the CAA [commercial consulting agreement] but: “One way or another we are going to have to deliver, and recover the costs as best we can. Seen against the future business, particularly in the military field, where to [Intermediary 1] could be obstructive, the cost is not great. I am asking for the best price we can get for a Silver Sprint II.” |
| Extract from statement of facts on corruption in Thailand | Extract from statement of facts on corruption in Thailand |
| “By the end of February 1992 a total of $4.75m had been paid to Intermediary 3. Two of the sums making up that total figure ($1.9m and $2.4m) were authorised at the point of payment by an RR senior employee.” | “By the end of February 1992 a total of $4.75m had been paid to Intermediary 3. Two of the sums making up that total figure ($1.9m and $2.4m) were authorised at the point of payment by an RR senior employee.” |
| More on Thailand | More on Thailand |
| “In November 1996 an internal RR memo noted that the same employee of Thai [Airways] had asked an RR senior employee to ‘release’ $1m of the $5m which remained to be paid to Intermediary 3. The memo recommended that payment be made now ‘so that Thai can use it to “manage the political process”. ’89. Three RR senior employees agreed to this.’” | “In November 1996 an internal RR memo noted that the same employee of Thai [Airways] had asked an RR senior employee to ‘release’ $1m of the $5m which remained to be paid to Intermediary 3. The memo recommended that payment be made now ‘so that Thai can use it to “manage the political process”. ’89. Three RR senior employees agreed to this.’” |
| Extract from statement of facts on corruption in India | Extract from statement of facts on corruption in India |
| “On or around 23 May 2005, MS [marketing services division] informed an RR senior employee that the £1m was approved in return for securing the £7.5m fee and confirmed that MS supported the proposal. Additional approval was provided by the RR senior employee. On or around 3 June 2005, a more senior RR employee was briefed and, following his approval, all four of the new CCAs [commercial consulting agreements] were signed by RR from 12 July 2005 onwards. All described fixed fees payable for general services.” | “On or around 23 May 2005, MS [marketing services division] informed an RR senior employee that the £1m was approved in return for securing the £7.5m fee and confirmed that MS supported the proposal. Additional approval was provided by the RR senior employee. On or around 3 June 2005, a more senior RR employee was briefed and, following his approval, all four of the new CCAs [commercial consulting agreements] were signed by RR from 12 July 2005 onwards. All described fixed fees payable for general services.” |
| More on India | More on India |
| “By 20 March 2006 two new CCAs through which RR in London was to make some of its payment to Intermediary 4 had received senior employee approval.” | “By 20 March 2006 two new CCAs through which RR in London was to make some of its payment to Intermediary 4 had received senior employee approval.” |
| Extract from statement of facts on corruption in Russia | Extract from statement of facts on corruption in Russia |
| “Discussions with and about the intermediaries were deliberately kept to a small circle within RR by the RR senior employee and other RR employees.” | “Discussions with and about the intermediaries were deliberately kept to a small circle within RR by the RR senior employee and other RR employees.” |
| Extract from statement of facts on charge that Rolls gave an Air Asia executive credits worth $3.2m for the maintenance of a private jet | Extract from statement of facts on charge that Rolls gave an Air Asia executive credits worth $3.2m for the maintenance of a private jet |
| “In early September [2012], as a commercial deal between RR and AAX [Air Asia X] first took shape, the AAX senior employee emailed the RR senior employee to complain about the CorporateCare rate on the private jet. The RR senior employee passed the complaint on to RR employees and noted: ‘We seem to have a death wish on this subject.’” | “In early September [2012], as a commercial deal between RR and AAX [Air Asia X] first took shape, the AAX senior employee emailed the RR senior employee to complain about the CorporateCare rate on the private jet. The RR senior employee passed the complaint on to RR employees and noted: ‘We seem to have a death wish on this subject.’” |