SNC-Lavalin Faces Crisis: Allegations of $177.5 Million in Bribes and Fraud in Libyan Business Dealings

Montreal, CANADA - Canada’s engineering powerhouse, SNC-Lavalin, is grappling with an escalating corruption scandal that could jeopardize its future business prospects.

Investigations and Allegations

• Royal Canadian Mounted Police (RCMP) announced charges against three SNC-Lavalin divisions (2001-2011)
  • Approx. $47.7 million in bribes
  • Defrauding the Libyan government of $129.8 million
• Former executives Sami Bebawi and Rudag Ben Aïssa have agreed to settlement plans
• Company denies any wrongdoing, will vigorously defend itself

Previous Scandals

• Bangladesh bridge project
• Work with consultants in Mexico
• McGill University mega-hospital project in Montreal

Threats to Business Prospects

• Potential loss of valuable Canadian contracts
• Reputation damage if convicted
• Could lose federal contracts with a 10-year ban

Background

• Integrity-related allegations pose a significant threat
• At least $4.7 billion in public contracts at risk
• Federal prosecutors in talks since autumn 2021
• Riadh Ben Aïssa, former executive vice president, arrested in Switzerland (2012)

Implications for SNC-Lavalin

Threats

• Loss of Canadian contracts
• Damaged reputation

Possibilities

• Company too large to fail
• Political and economic ramifications

Doubts about the Past and Oversight Practices

• Allegations date back to 2001
• Questions about past conduct and oversight practices.