Rolls-Royce under overseas bribery probe by UK watchdog

British aerospace and defence firm Rolls-Royce may face prosecution and be hit with multi-million pound fine from both sides of the Atlantic over allegations of corruption in overseas markets, including China.

Rolls-Royce, the world's second-largest maker of jet engines for civil and military use after General Electric, yesterday said that it has handed information over to the UK Serious Fraud Office (SFO) relating to alleged bribery and corruption ''involving intermediaries'' in  Indonesia, China and in other overseas markets.

The London-based company did not disclose who had initially brought the malpratices to its knowledge nor did it reveal the names of the intermediaries or which other countries were involved.

The US Department of Justice has also been informed of the issue, according to some British newspapers.

It appears that the SFO has been looking into the allegations for more than a year and recently had asked Rolls-Royce for information.

This prompted the company to hire a law firm, which after conducting its own investigations found "matters of concern" in China, Indonesia and other countries.