MONTREAL — The RCMP has laid fraud and corruption charges against Montreal-based engineering firm SNC-Lavalin and two of its subsidiaries following an investigation into the companies' dealings in Libya.
Police allege that between 2001 and 2011 SNC-Lavalin paid nearly $47.7 million to public officials in Libya to influence government decisions. It also charged the company, its construction division and its SNC-Lavalin International subsidiary of defrauding various Libyan organizations of about $129.8 million.
Three individuals — two former SNC executives and one of their lawyers — were previously charged by the RCMP part of the investigation that began in 2011.
SNC-Lavalin (TSX:SNC) said in a statement that it will plead not guilty.
“The charges stem from the same alleged activities of former employees from over three years ago in Libya, which are publicly known, and that the company has cooperated on with authorities since then,” said chief executive Robert Card.
SNC-Lavalin said the charges won't affect its ability to bid or work on any public or private contracts.
In October, Card said that the company could be forced to close or sell its operations if it faced criminal charges. A company vice-president later clarified that it would consider all options in deciding what is best for shareholders.
SNC-Lavalin's reputation has been tarnished in recent years by charges against former employees in Libya, Algeria, Bangladesh, and in relation to a $1.3 billion Montreal hospital contract.
Several ex-officials, including former CEO Pierre Duhaime and construction vice-president Riadh Ben Aissa, face fraud charges in Canada involving $22.5 million in payments related to the hospital contract.
Ben Aissa was charged in Canada after he was extradited from Switzerland where Swiss authorities had sentenced him to the 29 months he'd served in jail on fraud-related charges relating to SNC-Lavalin's business in Libya. They also ordered him to repay millions of dollars to the company.
Ben Aissa acknowledged in court that he bribed Saadi Gadhafi, son of Libya's late dictator, Moammar Gadhafi, so SNC could win contracts. Ben Aissa also admitted to pocketing commissions.
SNC-Lavalin had a presence in Libya for decades with annual revenues peaking at more than $400 million. Work included the Great Man-Made River project, a plan to pump water from deep desert wells to the populated cities along the northern coast. It also built an airport in Benghazi and a jail in Tripoli.
In 2011, the company removed all new contracts in Libya and nearly $900 million of older work from its backlog due to the civil war.
Still, the company had hopes several years ago of restarting work on cleaning up of three lakes in Libya's second-largest city and in building a new terminal and runway at Benina Airport.
The World Bank suspended SNC-Lavalin in 2013 from bidding on projects it finances for a decade over allegations of bribery involving a bridge contract in Bangladesh and a project in Cambodia.
