Rolls-Royce
has reported £4.6bn ($5.7bn) annual loss largely due to currency depreciation
and payment of $808m fine to affected countries where it was involved in
corrupt practices.
According
to a news agency, The Nerve, the motoring company had last month (January)
apologised for the corruption case that centred around allegations that the
group hired middlemen to broker deals in a number of countries including
Nigeria, South Africa and Angola.
In
2016, Rolls-Royce and its agent company in Nigeria, PSL Engineering and
Control, ordered to supply gas turbines to power plants in the oil states of
Bayelsa and Delta, were accused of various projects, especially to Oghareki
power plant in Delta that cost $100m but was never completed.
Findings
from an investigation conducted by the Guardian and the British Broadcasting
Corporation had uncovered leaked documents and testimony from insiders that
suggested that Rolls-Royce might have benefited from the use of illicit
payments to key officials and politicians to boost profits for years.
The
Guardian/BBC investigation, called Panorama, revealed that Nigeria, Angola and
South Africa were part of the 11 countries the company had hired
intermediaries.
The
investigation also revealed Rolls-Royce hired Fana Hlongwane, who is close to
South Africa’s ANC government, in 2008 to help broker deals in the country.
Although,
Nigeria or South Africa have yet to get any amount from the agreement, the
company revealed last month it had agreed to pay £671m to settle
corruption cases with the United Kingdom, the United States and Brazilian
authorities.
The
company’s Chief Executive, Warren East, took the helm in 2015 and has been
tasked with turning around the company.
East
said, “While we have made a steady start, more remains to be done. The addition
of new management and a renewed focus within the business leadership teams,
with clear goals and stronger accountabilities, should provide a strong
platform for further progress in 2017.”
He
added he would reveal further plans about the firm’s direction later this year.
Rolls-Royce
is a luxury automobile driven by very influential Africans, politicians,
businessmen and religious leaders, notably from Nigeria and South Africa.
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