RCMP Raids SNC-Lavalin’s Montreal Headquarters
As part of executing a search warrant, RCMP swarmed the Montreal headquarters of SNC-Lavalin today (Ottawa Citizen and 570 News). Neither the RCMP nor SNC-Lavalin provided any details of the search.
The Ottawa Citizen reported, “SNC has been beset by a financial scandal relating to its contracts in Libya under the regime of the late leader Moammar Gadhafi. Concerns about more than $50 million in missing funds led to the departure of two senior SNC executives in recent months, executive vice-president Riadh Ben Aissa and vice-president of finance Stephane Roy. At the time, the company announced it would conduct an internal investigation. Weeks later, CEO Pierre Duhaime resigned after it was revealed he had signed off on questionable payments. Duhaime received a $4.9 million severance package.”
This is not the first time that SNC’s offices have been raided by the RCMP. 570 News reported, “The World Bank has temporarily suspended its (SNC’s) Bangladesh subsidiary from bidding on new projects while it completes an investigation that prompted RCMP raids of Toronto-area offices last year.”
Thestar.com reported, “It appears SNC is trying to sweep under the rug one of the most significant apparent breaches in recent memory of the high standards of ethical conduct in which SNC has long claimed to be an avatar…SNC chairman Gwyn Morgan has been a noisy scold of purported low moral conduct in the public sector. Of alleged misconduct at private-sector SNC, he is silent.”
Many in the upper echelons of the corporate world may simply think that SNC-Lavalin has been unlucky and that they broke the 11th Commandment – “Don’t get caught”; however, one has to wonder how much more negative news this company can endure.
SNC shares fell 6.56% on the Toronto Stock Exchange, losing $2.63 at $37.44 this afternoon.
SNC-Lavalin, which owns 100% of AltaLink, is playing a major role in building the controversial Heartland power line together with AltaLink and EPCOR; and will also be playing a major role in building the Western Alberta Transmission Line together with AltaLink. SNC-Lavalin has many other projects in Alberta. For more information on SNC and AltaLink see this link, and for information on the connection between SNC-Lavalin/AltaLink and the Alberta PC Party, see Making Money by Making Friends.