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Details emerge of alleged Rolls-Royce China bribes

If allegations from a pseudonymous blogger are true, Rolls-Royce propelled itself into the Asian market with the help of payments passed to an executive of Air China and China Eastern Airlines.

Executive Chen Qin, who worked for both airlines, allegedly acted as Rolls-Royce’s intermediary in two pivotal deals inked in 2005 and 2010, worth $2 billion in all.

Chen is thought to have been detained for corruption in April 2011.

China Eastern told the Sunday Times: “Neither China Eastern nor Air China has any right to talk about Chen’s case; only prosecutorial organs know the true background.”

Last month, Rolls-Royce disclosed that the U.K. Serious Fraud Office had asked the company to investigate allegations of misconduct involving intermediaries in Indonesia and China.

The British jet engine maker admitted its internal investigation turned up “matters of concern.”

The SFO is said to be under pressure to pursue prosecutions in the Rolls-Royce case.

Sources: The Telegraph, Sunday Times, The Guardian


Benjamin Kessler is a contributing editor of the FCPA Blog and managing editor of ethiXbase. A version of this post appeared in the China Compliance Digest.

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