- AfDB recognizes SNC-Lavalin's cooperation in the investigation
- AfDB credits SNC-Lavalin's dedication to ethical business and commitment to integrity
MONTREAL, Oct. 1, 2015 /CNW Telbec/ - Today, SNC-Lavalin (TSX: SNC) is pleased to announce that it has reached a settlement with the African Development Bank Group (AfDB) regarding allegations of sanctionable practices by SNC-Lavalin International Inc., a subsidiary of the company, in connection with certain AfDB-financed contracts in Mozambique and Uganda. This settlement follows an approach by the Integrity and Anti-Corruption Department ("IACD") of the AfDB and cooperation by SNC-Lavalin with IACD.
Under the agreement, SNC-Lavalin International Inc. will not be debarred, provided SNC-Lavalin meets certain conditions for a period of two years and 10 months. The agreement, which relates to alleged actions of former employees in connection with contracts awarded in 2008 and 2010, includes a settlement payment of $1.5M in support of anti-corruption initiatives in Africa. No other subsidiary of SNC-Lavalin will be sanctioned pursuant to the agreement.
"This settlement agreement demonstrates SNC-Lavalin's commitment to the highest standards of business ethics and is proof that companies can engage in a constructive dialogue and find effective means to reward remediation while allowing companies to move forward," stated Robert G. Card, President and CEO, SNC-Lavalin Group Inc. "Our cooperation with the AfDB clearly shows our efforts to become a global benchmark in ethics and compliance in our industry with a system designed to promote integrity through prevention, detection and remediation."
Becoming a benchmark in ethics and compliance
Under the leadership of the Board of Directors, we have made significant changes to the company over the past three years and reinforced our Ethics and Compliance program with huge investments in time and money, making significant and concrete enhancements, including:
- Creating the position of Chief Compliance Officer, who reports to the Board, and hiring world-renowned leaders in compliance;
- Appointing compliance officers in all of the company's business sectors;
- Creating a dedicated Ethics and Compliance Team;
- Further reinforcing internal controls and procedures;
- Further reinforcing its Code of Ethics and Ethics and Compliance Hotline;
- Producing a dedicated Anti-Corruption Manual;
- Offering annual compliance training to all employees, with a special focus on those working in strategic roles;
- Developing and distributing a world-class Business Partners Policy to employees;
- Using an independent third party to screen candidates for senior management positions.
All remaining details and specifics regarding the Settlement Agreement are to remain confidential, as stipulated by the agreement.
Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin's employees provide EPC and EPCM services to clients in a variety of industry sectors, including mining and metallurgy, oil and gas, infrastructure and power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions. www.snclavalin.com
For further information: Media: Louis-Antoine Paquin, Media Relations Manager, Global Corporate Communications, SNC-Lavalin Group Inc., 514-393-8000, ext. 54771, firstname.lastname@example.org; Investors, Denis Jasmin, Vice-President, Investor Relations, SNC-Lavalin Group Inc., 514-393-8000, ext. 57553, email@example.com