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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