SFO scales back probe into Rolls-Royce

The Serious Fraud Office (SFO) has dropped its investigation into a number of individuals associated with British engineering giant Rolls-Royce.

Sky News originally reported that a number of people who were suspects in the SFO's investigation have been informed that they are no longer under investigation.

Rolls-Royce entered into a deferred prosecution agreement (DPA) with the SFO in January 2017 after four years of investigation into bribery and corruption. It was ordered to pay a settlement of £497.25m plus interest, as well as the SFO’s costs of £13m.

A DPA allows a company to account to a court for conduct without suffering the full consequences of a criminal conviction. The DPA covered conduct that spanned jurisdictions including Indonesia, Thailand, India, Russia, Nigeria, China and Malaysia.

An SFO spokesperson said: "Some individuals were notified that they are no longer suspects in the Rolls-Royce investigation. The investigation continues into a number of individuals."

A Rolls-Royce spokesperson said: “Rolls-Royce continues to co-operate fully with the authorities, including ongoing co-operation as the Serious Fraud Office pursues enquiries into individuals. We note the latest action taken by the SFO, but will not comment on individual cases.” 

The case against Rolls-Royce was one of a number of high-profile "blockbuster" cases secured under the tenure of former director David Green.

Green has since been replaced by former FBI lawyer Lisa Osofsky after he joined elite law firm Slaughter and May.

The decision to scale back the investigation comes at a testing time for Osofsky and the SFO.

Last year its case against two former executives at Tesco over their role in the 2014 accounting scandal was thrown out due to a lack of evidence and the two defendants were acquitted.

Charges it brought against Barclays bank over a $3bn loan made to Qatari investors was also thrown out last year, although charges against the bank's former chief executive and other senior employees remain in place.

Meanwhile, three defendants accused of rigging the Euribor interest rate benchmark are to stand trial again later this month after a jury failed to reach a verdict last summer.