Daimler, Rolls-Royce want Tognum to clear up compliance issue

Dow Jones Newswires (Frankfurt) - Daimler AG (DAI.XE) and Rolls-Royce PLC (RR.LN), the new owners of Tognum AG (TGM.XE), want the German diesel engine maker to take decisive action to clear up a compliance issue which, according to public prosecutors, was triggered by suspicious payments in the million-euro range in South Korea for defense-related goods.

Daimler said Wednesday in an emailed statement that it expects Tognum "to clarify the issue with highest accuracy," adding that meeting compliance demands is of "vital importance" for the maker of Mercedes-Benz luxury cars.

Daimler declined, however, to comment on whether the issue could affect its plans at Tognum.

"Tognum has commissioned an independent investigation into these allegations and we would expect them to deal decisively with any malpractice," a representative for Rolls-Royce said in an emailed statement.

The U.K. engine maker and the German automaker jointly acquired a 97% stake in Tognum earlier this year.

A spokesman for the public prosecutors office in Ravensburg, Germany, said Tognum informed authorities orally about the allegations. He said prosecutors will wait for the final report from auditing firm Ernst & Young on the issue and then decide if a probe into bribery allegations will be launched.

On Monday, Tognum said it found "conspicuities concerning agent's contracts with Asian sales partners" and will "inform about the results and possible consequences in due course." It didn't specify the "conspicuities."