SNC-Lavalin (TSX:SNC) has been advised by the Director of the Public Prosecution Service of Canada (DPPSC) that at this time they will not invite SNC-Lavalin to negotiate a Remediation Agreement. SNC-Lavalin strongly disagrees with the DPPSC’s current position and remains open and committed to negotiating such an agreement in the interest of its employees, partners, clients, investors, pensioners and other stakeholders, all innocent parties that have been affected during the last six years, and now face an unnecessary extended period of uncertainty.
The Company will continue to operate as it has since the charges were laid in 2015, focused on bringing value to its shareholders and other stakeholders by continuing to offer industry leading engineering and professional services and by growing its business, all the while vigorously defending itself against the charges. The Company is reviewing its options to appeal this decision.
The government of Canada undertook an exhaustive legislative process that led to the adoption of a Remediation Agreement regime permitting companies to defer prosecution in exchange for fines, remediation and cooperation. This regime enables fair, effective and globally competitive resolution of issues for Canadian corporations, if companies admit wrongs, make compensation, pay fines, cooperate and help ensure the individuals responsible are held to account.
A key purpose of the legislation is “to reduce the negative consequences of the wrongdoing for persons — employees, customers, pensioners and others — who did not engage in the wrongdoing, while holding responsible those individuals who did engage in that wrongdoing.” The Company believes that the legislation should be utilized to its intent with regards these innocent stakeholders.
Since 2012, SNC-Lavalin has developed and built a world-class ethics & compliance framework. This has been embodied to the extent that ‘Integrity’ has become one of the Company’s core values, and the Integrity function within SNC-Lavalin has a remit beyond traditional ethics & compliance. The Company has co-operated fully with regulatory and government authorities. The Company has tirelessly worked towards a world class ethics and compliance culture through numerous means, which remain unaffected by today’s update, including:
- Changed leadership at Board and Management levels with an enhanced culture of Integrity
- Established a world-class ethics & compliance framework
- Signed an administrative agreement concerning ethics and compliance with Public Services and Government Services Canada to continue our eligibility to provide services to the government of Canada
- Reached an agreement with the Commissioner of Canada Elections
- Concluded in 2016 an agreement between engineers and ex-engineers of SNC-Lavalin and the syndic’s Office of the Ordre des ingénieurs du Québec following investigations about political contributions
- Reached a fair and final settlement with Quebec’s voluntary reimbursement program
- Autorité des marchés financiers (AMF) certification renewed
- Settled class actions in Quebec and Ontario filed in 2012 on behalf of security holders
Founded in 1911, SNC-Lavalin is a global fully integrated professional services and project management company and a major player in the ownership of infrastructure. From offices around the world, SNC-Lavalin's employees are proud to build what matters. Our teams provide comprehensive end-to-end project solutions – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance – to clients across oil and gas, mining and metallurgy, infrastructure, clean power, nuclear and EDPM (engineering design and project management). On July 3, 2017, SNC-Lavalin acquired Atkins, one of the world’s most respected design, engineering and project management consultancies, which has been integrated into our sectors. www.snclavalin.com