SFO Drops The Choudhries From Rolls-Royce Case

DELHI, India - Sept. 22, 2014 - PRLog -- The SFO investigate on launched last December into Rolls-Royce’s business dealings in China and Indonesia has turned on its head as the two leading men being probed have had their bail lifted-a likely indication of their getting absolved from further investigations.

India-born businessman Sudhir Choudhrie and son Bhanu Choudhrie were last February included by the SFO in its investigations, leading to their brief detention before being bailed without conditions. Now, The Sunday Times breaks that the bail for the duo was lifted back in July, indicating likeliness that they may not play a part in further inquiries.

The Sunday Times also quotes a spokesman for the Choudhries reinstating their stance since February. “They deny any wrongdoing and have co-operated fully with the authorities", the spokesman said.

When contacted by Reuters, SFO refrained from issuing a statement while Rolls-Royce could not be reached.

Rolls-Royce has been hit by a flurry of bribery allegations that span China, Indonesia, India, UK, and the US. The two major agencies, other than the Serious Fraud Office, UK, independently bribery and corruption are India’s Central Bureau of Investigation (CBI) and the Department of Justice (DOJ) in the US.

The CBI is probing deals made with the state-run HAL while the DOJ investigations centre on probing RR under America’s Foreign and Corrupt Practices Act. The SFO investigations tie to China and Indonesia alone.

In March, the company took public cognizance of rising accusations and announced cutting down middlemen engagement. To incentivize dwindling investor sentiment, the world’s second largest aircraft engine manufacturer came down strongly on systemic wrongdoings and malpractices and vowed plugging existing gaps for greater transparency in business deal-making.

It was in 2012 when an ex-Rolls-Royce employee turned a whistle-blower that SFO first learnt about alleged systemic malpractices. It directed Rolls-Royce to induct law firm Debevoise & Plimpton to execute an internal probe.

Rolls-Royce conducted the probe and passed on to SFO the findings “relating to concerns about bribery and corruption involving intermediaries in overseas markets.” It was on the back of this that, in December 2013, the SFO formally opened an inquiry into the matter to probe intermediary dealings in China and Indonesia.