SNC-Lavalin Corruption Case Won't Get Hearing Until 2018
Canadian engineering giant SNC-Lavalin now won’t face a hearing on a key set of corruption charges until at least 2018, in a deal reached with federal officials late last month. Actual trial likely won’t occur until a year or two later, a top company executive told analysts on March 3.
While the delay means the charges—linked to actions by long-departed executives—continue to hang over the firm, it also offers more time to reach a government settlement. Two cases involving alleged bribery and embezzlement in Libya over a decade—with the firm and an ex-executive as separate defendants—now will be combined.
SNC-Lavalin has been vocal in its drive to convince the Canadian government to adopt non-prosecution agreements that would allow the company to pay a fine without admitting guilt. Most other developed nations, including the U.S., use such pacts, the Montreal-based company has argued, noting its complete overhaul of management, and of ethics policies.
“Some form of deferred prosecution agreement should be implemented ... for all Canadian companies,” said Alain-Pierre Raynaud, SNC-Lavalin chief financial officer. “Any other Canadian company who ended up in the same position as us, is at a serious competitive disadvantage versus our U.S. and European peers.”
SNC-Lavalin, a major federal contractor in Canada, won a short-term reprieve in December that lets it compete for government work while it defends itself in court.
Analysts seemed optimistic as the firm announced fourth-quarter 2015 numbers. “Benefiting from the roll-off of over-budget projects and a heightened focus on execution and risk management, SNC delivered another quarter of encouraging results,” said Yuri Lynk, Canaccord Genuity construction sector analyst.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new smart AI search tool.
Ask ENR →
