- A unit of
SNC-Lavalin Group Inc. has pleaded guilty to fraud, ending a legal drama that had engulfed the engineering company and the Trudeau government. -
The Canadian engineering giant and prosecutors on Wednesday unveiled a deal in which the company's construction division pleaded guilty to a single charge of fraud related to activities in
Libya . It will pay a$280-million fine and receive a three-year probation order. A more potentially damaging charge of bribery under the Corruption of Foreign Public Officials Act was dropped.
- Legal observers noted the settlement's effect is likely similar to what a DPA would have achieved: A hefty fine, a statement of guilt and monitoring of the company for a prescribed period.
-
"One could say it's a DPA through the back door," said
Kenneth Jull , who specializes in corporate compliance.
SNC‐Lavalin settles
- One of the biggest risks faced by SNCLavalin in the event of a conviction on corruption charges involving foreign officials was its ability to bid for construction projects in
Canada and abroad. Under federal law, a bribery offence could result in a bidding ban for federal contracts for up to 10 years. It could also prompt a ban on bidding for projects backed by theWorld Bank .
SNC‐Lavalin settles
- While fraud committed against the Canadian government is covered under the public works department's integrity regime —and could thus trigger a ban — a fraud offence connected to a foreign government is not, said
Kenneth Jull , an expert in financial crimes and corporate compliance at Gardiner Roberts law firm inToronto .
SNC‐Lavalin settles
- "It's very clever. You could say it's almost like a DPA through the back door," said Jull, who has endorsed deferred prosecution agreements (DPA) —a type of plea deal that steers clear of admissions of guilt —as a way to avoid punishing innocent employees for C-suite offences.
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