Rolls-Royce Holdings PLC is facing fresh questions over its ties to an influential Brazilian businessman after he was charged in connection with a high-profile corruption investigation known as Operation Black Blood.
Businessman Julio Faerman, who worked as a representative for Rolls-Royce in Brazil, was charged before Christmas with alleged bribery, money laundering and tax evasion as part of a scheme involving a Dutch company and Brazil’s state-owned oil giant Petrobras.
Rolls-Royce has repeatedly declined to comment on its relationship with Faerman, who told the Guardian his company acted as an agent for Rolls-Royce when it sold power turbines to Petrobras for offshore oil platforms. Faerman denies any wrongdoing.
The British engineering group is currently cooperating with Brazilian authorities investigating alleged corruption at Petrobras and its contractors.
Earlier this year, allegations emerged that Rolls-Royce paid bribes to a ring of Petrobras executives and politicians via its agent in exchange for a US $100 million contract with the oil company.
The allegations against Rolls-Royce form part of a widespread, multibillion-dollar scandal that has engulfed Petrobras and other major Brazilian and foreign companies.
The scandal, which continues to unfold, has had a profound impact on the Brazilian economy and political landscape.
Prosecutors behind Operation Black Blood have charged a group of 12 individuals, including Faerman and his business partner, for their alleged participation in a long-running bribery scheme between Petrobras and one of its major contractors, SBM Offshore NV, which builds specialist ships for the oil and gas industry.
Faerman, a former sales agent for SBM in Brazil, was allegedly involved in arranging multimillion-dollar bribes for the Dutch company. At least US$46 million of payments were made via Swiss bank accounts, said a statement from federal prosecutors in Rio de Janeiro.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to