Update on AltaLink’s Scandal-Plagued Parent Company

Montreal-based construction giant, SNC-Lavalin, continues to make the news as the international corruption probe into allegations of bribery, fraud and money-laundering uncovers additional information. (SNC-Lavalin owns 100% of AltaLink and is building most of AltaLink’s new high voltage transmission lines in Alberta.)

Investigations by the World Bank into an alleged high-level corruption conspiracy involving SNC-Lavalin and high-ranking Bangladeshi politicians and officials have now resulted in the World Bank cancelling a $1.2 billion loan for construction of a bridge across the Padma River in Bangladesh (Bloomberg News, Reuters, NDTV). Some time ago, the World Bank had indicated that SNC-Lavalin would not be allowed to bid on any other contracts that involved World Bank financing. Now, the World Bank has taken a relatively unprecedented step by cancelling its contribution to the Padma Bridge project.

The World Bank was quoted as saying, “The World Bank cannot, should not, and will not turn a blind eye to evidence of corruption. We have both an ethical obligation and a fiduciary responsibility to our shareholders and” the member states contributing to the fund that lends to poor countries.

At the same time, SNC-Lavalin shareholders suing the company over a missing $56 million have been given the go-ahead by the Ontario Superior Court of Justice to advance their claim, even though the shareholders’ lawyer was unable to serve the suit on two SNC-Lavalin executives at the centre of the scandal (National Post).

And, Transport Quebec is moving closer to filing a multi-million dollar lawsuit against SNC-Lavalin and two other engineering companies over alleged faulty repair designs that resulted in a massive section of the Ville Marie Tunnel crashing onto the roadway in Montreal (Montreal Gazette).

See this link and Making Money by Making Friends for more information on SNC-Lavalin.

~ by RETA on July 3, 2012.