SNC-Lavalin Admits to Fraud in Libya, Pleads Guilty and Agrees to $280 Million Fine

December 18, 2019

A Major Victory in the Fight Against Foreign Bribery

In a significant development, SNC-Lavalin Construction Inc. (SLCI), a subsidiary of the Canadian engineering and construction company SNC-Lavalin, has pleaded guilty to fraud contrary to subsection 380(1) of the Criminal Code.

The Agreed Statement of Facts

According to an Agreed Statement of Facts filed with the Court, between 2001 and 2011, SLCI directed $47.7 million to Saadi Gadhafi, the son of the former Libyan leader Muammar Gadhafi, in exchange for lucrative contracts.

The Plea Agreement

The company also agreed to pay a fine of $280 million as part of its plea agreement.

A Major Victory for Canadian Authorities

This guilty plea is a major victory for Canadian authorities and marks one of the largest foreign bribery cases brought by the country’s prosecution service. It highlights the importance of the Corruption of Foreign Public Officials Act (CFPOA), which was enacted in 2013 to combat corruption and promote transparency in international business dealings.

Quote from Director of Public Prosecutions

“This guilty plea sends a strong message that foreign bribery will not be tolerated in Canada,” said [Name], Director of Public Prosecutions. “We are committed to ensuring that Canadian companies operate with integrity and respect for the law, both at home and abroad.”

Collaboration between Authorities

The case was brought by the Public Prosecution Service of Canada (PPSC) in collaboration with the Royal Canadian Mounted Police (RCMP). The investigation began several years ago following a referral from the RCMP’s Sensitive and International Investigations Unit.

SNC-Lavalin’s History of Controversy

SNC-Lavalin has been embroiled in controversy over the past few years, including allegations of corruption and bribery in its dealings with foreign governments. In 2018, the company faced allegations that it had bribed officials in Libya to secure lucrative contracts. The company denied any wrongdoing at the time, but an investigation by the RCMP found evidence of fraud and bribery.

The Importance of the CFPOA

The guilty plea by SLCI underscores the importance of the CFPOA, which has been instrumental in bringing Canadian companies to justice for foreign bribery offenses.

In related news, the RCMP has been working to raise awareness about foreign corruption and the importance of preventing bribery and corruption in international business dealings. The agency has launched several initiatives aimed at educating businesses and individuals about the risks associated with corruption and promoting ethical conduct in international trade.

Conclusion

The guilty plea by SLCI is a major victory for Canadian authorities and marks an important step forward in the fight against foreign bribery. It demonstrates the commitment of the Government of Canada to ensuring that Canadian companies operate with integrity and respect for the law, both at home and abroad.