United Kingdom's Serious Fraud Office (SFO), announced today that its director has opened a criminal investigation into allegations of bribery and corruption at Rolls Royce. In a separate press statement Rolls Royce confirmed that the SFO have started a "formal investigation".

Today's announcement covers allegations of bribery and corruption in Indonesia and China.

In early December 2012, Rolls-Royce started talks with the SFO related to the same matter, it said it will strengthen the company's internal compliance procedure covering hiring sales intermediaries and implementing a global ethics code. Rolls-Royce added at that time it will appoint an independent senior figure to lead a review of current procedures.

John Rishton, Rolls-Royce chief executive, stated, in December 6th 2012: "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. This is a company with exceptional prospects and I will not accept any behavior that undermines its future success".

The SFO is an independent UK Government department that investigates and prosecutes serious or complex fraud and corruption. Accountable to the attorney general, it has jurisdiction over England, Wales and Northern Ireland.

Section 2 of the Criminal Justice Act 1987 grants the SFO special compulsory powers to require any person (or business/bank) to provide any relevant documents (including confidential ones) and answer any relevant questions including ones about confidential matters. The SFO is also the principal enforcer of the Bribery Act 2010,