Rolls-Royce in talks with SFO over bribery concerns A general view of the Rolls-Royce facility at Derby at the British-based engineering firm. Photograph: Rui Vieira/PA British aerospace and defence group Rolls-Royce said it had passed information to Britain's Serious Fraud Office relating to concerns about bribery and corruption involving its intermediaries overseas. Rolls, the world's second-largest maker of aircraft engines behind US group General Electric, said on Thursday this followed a request for information from the SFO about allegations of malpractice in Indonesia and China. The company said its investigations had identified matters of concern in these, and in other overseas markets. "I want to make it crystal clear that neither I nor the board will tolerate improper business conduct of any sort and will take all necessary action to ensure compliance," chief executive John Rishton said in a statement. This is a company with exceptional prospects and I will not accept any behaviour that undermines its future success. Shares in Rolls-Royce, which have risen 25% this year, tumbled 5% in early trading, to 870p, the biggest faller in the FTSE 100. Rolls said the consequence of these disclosures would be decided by the regulatory authorities and that it was too early to predict the outcome. Certain individuals could be prosecuted, said the company, adding that it would fully co-operate with the investigation. A source with knowledge of the events said the SFO had asked Rolls to investigate allegations of corruption in China and Indonesia earlier this year. Rolls hired an independent body to do this and passed the results to the SFO, the source added. Rolls-Royce has almost 2,000 employees across Greater China, including joint ventures, and the country's operations contributed £934m in revenue in 2011, making it the group's fourth biggest market. BAE Systems, Europe's biggest defence company, was fined $450m by the US and Britain in 2010, following long-running corruption investigations at home and abroad into defence deals in Saudi Arabia, Tanzania, Sweden, the Czech Republic and Hungary. Rolls-Royce, which also operates in the marine and energy sectors, said it had significantly strengthened its compliance procedures in recent years, including the introduction of a new global ethics code and a new intermediaries policy. The British company said it would appoint an independent senior figure who would lead a review of current procedures and report to the ethics committee of the board.