Media

Clarifications

SNC-Lavalin wishes to make a clarification about a Canadian Press article, which was notably published by the National Post, The Montreal Gazette, CTV News and City News.

In this article about the agreement between Elections Canada and SNC-Lavalin announced on September 8, the Canadian Press states that "The deal includes SNC-Lavalin hiring an in-house ethics watchdog, putting in place new compliance and governance policies to detect, curb and prevent ethically problematic practices, and updating its corporate code of conduct to specifically deal with political donations."

This implies that these measures are imposed on SNC-Lavalin following the agreement. This is not the case and it’s actually the other way around. These measures had already been put in place in the past few years, which is one of the factors taken into consideration by the Elections Canada commissioner to reach an agreement with SNC-Lavalin. This is outlined in the agreement https://www.cef-cce.gc.ca/content.asp?section=agr&document=aug3016&lang=e , which recognizes that SNC-Lavalin has:

    • put in place compliance and governance policies to detect, curb and prevent ethically problematic practices;
    • created and filled the position of Head of Compliance and Ethics, which is responsible for compliance, ethics and good governance within the Contracting Party, and reinforced the role and functions related to that position;
    • updated its Code of Ethics and Business Conduct, which contains a clause that deals specifically with political contributions. This clause ensures that the Contracting Party will not reimburse any political contribution, either directly or indirectly, made to any Canadian federal political entity. It also contains a prohibition on making political contributions on behalf of the Contracting Party. Lastly, the Code prohibits the use of time, funds, assets, resources, or list of employees of the Contracting Party for political activities, and the soliciting of personnel of the Contracting Party for political contributions during working hours;
    • implemented a policy on political contributions that provides that the Contracting Party may not reimburse or compensate directly or indirectly, in any manner, political contributions made by its employees;
    • implemented an internal control and monitoring process in order to detect non-compliant practices; and
    • prior to the Commissioner's investigation, put in place an internal administrative amnesty system for a period of approximately three months (which allowed the Contracting Party to identify some of the contraventions in question), as well as an ethics and compliance help line for employees and other individuals to report, confidentially and without fear of reprisal, any cases of non-compliance they may have witnessed.

To learn more about SNC-Lavalin’s ethics and compliance program, which is based on international best practices, visit http://www.snclavalin.com/en/sustainability/ethics-compliance/index.aspx

http://montreal.ctvnews.ca/new-montreal-children-s-hospital-to-undergo-another-5m-in-repairs-1.3042969

http://montrealgazette.com/news/local-news/montreal-childrens-hospital-to-undergo-extensive-repairs-a-year-after-opening

It is incorrect to say that the work we are doing is "repairs". That would entail that we are fixing something that does not work, which is not the case.

The ventilation system in the sterile core of the MUHC's operating rooms was designed and built according to the norms, standards and regulations stipulated in the Project Agreement between GISM and the MUHC.

Our position is that updating the ventilation systems to different norms, standards and regulations than those referred to in the Agreement is not included in our scope of work. It is a modification to the signed Agreement. GISM is performing the work regardless.

http://ici.radio-canada.ca/nouvelles/Economie/2016/05/18/001-panama-papers-agence-commerciale-cadber-investments-snc-lavalin-algerie-contrats.shtml

http://www.cbc.ca/news/business/panama-papers-snc-lavalin-contracts-secret-offshore-company-algeria-1.3586953

http://startouch.thestar.com/screens/58f9e63e-9d09-45bd-81f2-1fe20a000902%7C92MimTotpT_D.html

http://startouch.thestar.com/screens/58f9e63e-9d09-45bd-81f2-1fe20a000902%7C92MiiKPDGPPk.html


Following the publication of articles by CBC/Radio-Canada and the Toronto Star, SNC-Lavalin would like to make certain clarifications.

Today, in 2016, it is impossible for us to determine who is/was the owner(s) of Cadber Investments, the intention of the people who signed one or more agreements with Cadber, or the intention of Cadber itself. SNC-Lavalin has had no contact with Cadber Investments for over a decade.

The former SNC-Lavalin executives who may have been linked to the system Radio-Canada/Toronto Star are referring to, which dates back some 15 years ago, are no longer employed by the company.

We can also assert that SNC-Lavalin has not used any commercial agents in Algeria since 2013. The company’s current administration does not consider it normal practice to sign agreements with figureheads. SNC-Lavalin vehemently and roundly condemns this type of practice.

We discovered, after 2012, that commercial agents to whom we had been introduced by former executives now facing criminal charges worked for companies that in fact belonged to those former executives. http://affaires.lapresse.ca/dossiers/litiges-economiques/201504/09/01-4859405-snc-poursuit-bebawi-et-ben-aissa.php

For example, further to a ruling by a Swiss court, Riadh Ben Aïssa was ordered to reimburse SNC-Lavalin the sum of C$16 million, an amount he had embezzled from us. http://business.financialpost.com/legal-post/inside-the-clandestine-world-of-snc-lavalins-fallen-star-riadh-ben-aissa

In 2013, we introduced a Business Partner Policy (i.e., a policy establishing the general principles and procedures prior to reaching an agreement with any business partner that will act on SNC-Lavalin’s behalf) precisely in order to prevent this type of practice.

We are confident that, in the past few years, we have instituted a first-rate ethics and compliance program that now ensures SNC-Lavalin is exercising its activities around the world in compliance with local and international legislation. http://www.snclavalin.com/en/ethics-compliance/ethics-compliance-faq.aspx.

http://www.journaldemontreal.com/2016/02/03/qui-sera-le-prochain-fleuron-quebecois-vendu-1

We would like to underscore that Mr. Nadeau‘s comments about SNC-Lavalin are inaccurate. Eight of the company's ten highest executives, including the CEO, are based and live in Montreal where all our international business is managed. Nearly all of the meetings held by the Board, the Executive committee and the Management committee (100 highest executives) take place in Montreal. In addition, we are not for sale.

Article dated October 27, 2015

We would like to clarify certain points raised in recent media reports. The information obtained by certain media is outdated, inaccurate, and does not represent the current situation.

The SaskPower Boundary Dam project is a first of its kind, and many issues could only be identified and corrected once the plant was operational by our client, SaskPower. We have been addressing all issues on a priority basis as they have come to our attention, in alignment with SaskPower.

We believe that if there are any areas for discussion around contractual points, the resolution process required in the relevant contracts is the best venue to resolve such issues.

We continue to work in collaboration with our client to develop the world's largest commercial carbon capture project, in Saskatchewan, and support SaskPower in transitioning this first of a kind project to full capacity.