Rolls-Royce plc, Britains leading manufacturing multinational, hired a network of

agents to help it land lucrative contracts in at least 12 different countries around the world,
sometimes allegedly using bribes. Investigations by medias have uncovered leaked
documents and testimony from insiders that suggest that Rolls-Royce may have benefited
from the use of illicit payments to boost profits for years.

The network of agents is now the focus of large-scale investigations by anti-

corruption agencies in the UK and the US. The agents have been hired in at least 12 countries
Brazil, India, China, Indonesia, South Africa, Angola, Iraq, Iran, Kazakhstan, Azerbaijan,
Nigeria and Saudi Arabia. 30 investigators in the UK were now focused on the
multinationals use of agents, or middlemen, to clinch export contracts in a number of
countries across several strands of its business.

Part of the SFO (Serious Fraud Office) investigation is likely to centre on Rolls-
Royces relationship with Unaoil, a Monaco-based firm that has been accused of using bribes
to win contracts in a series of countries for dozens of multinationals. The SFO opened a
criminal investigation into Unaoil over allegations of bribery, corruption and money
laundering. Leaked documents, obtained by Fairfax Media in Australia, suggest Rolls-Royce
hired Unaoil to seal contracts in Iraq, Iran, Kazakhstan, Angola and Azerbaijan.

Another agent hired by Rolls-Royce is Fana Hlongwane, who is close to South

Africas ANC government and in 2008 was implicated in a separate corruption scandal. A
confidential contract shows that in 2005, Rolls-Royce signed up Hlongwane as a commercial
consultant to promote its business in South Africa. Hlongwane has previously denied that he
or his companies have been involved in any corruption or wrongdoing. He has not been
prosecuted for any offences and did not respond to a request for comment.

Anti-corruption experts say that firms can use well-connected agents to channel bribes
to key politicians or officials who are responsible for awarding contracts, although there are
many different legitimate uses for agents in foreign countries.

Rolls-Royce has said that since the bribery allegations began to surface, it has
dramatically culled the number of agents it uses, although it has not specified how many.
Admitting in its annual report two years ago that the allegations were a body blow, Rolls-
Royce has said its employees now have more direct responsibility for selling its products.
FRAUD DIAMOND ANALYSIS

- Opportunity
Opportunity is talking more about opening the door for perpetrator. By using
intermediary agents in 12 countries (Brazil, India, China, Indonesia, South Africa,
Angola, Iraq, Iran, Kazakhstan, Azerbaijan, Nigeria and Saudi Arabia) that
understands the political and economic condition of their own countries, Rolls Royce
had the opportunities to secure important contracts in those countries.

- Incentive
Incentive could be described by leading perpetrators to the door. What
motivates Rolls Royce is certainly the huge amount of the contracts that it would get
if it could secure all of them. Besides, since it involved 12 countries, it is necessary
for Rolls Royce to expand and maintain its network there, in case it may have future
businesses with them.

- Rationalization
Rationalization coaxes the perpetrators to the door. Those hired network of
agents are the ones that are deemed to have bribed their local government and officials
to help Rolls Royce secure the contracts in those countries. Thus, Rolls Royce has no
concern in utilizing their services and believed that it will not get caught due to its
indirect relationship.

- Capability
Capability enables the perpetrators to walk through the door. The people
involved in the scandal was well-educated, experts and prestigious universities
graduates. Without such competence, they would have not been able to commit the
fraud. In addition, the help of their networks in those 12 countries enabled them to
seal the deals.

REFERENCE

https://www.theguardian.com/business/2016/oct/31/rolls-royce-middlemen-may-have-used-
bribes-to-land-major-contracts, accessed May 17th 2017