There is enough evidence against SNC-Lavalin for the engineering corporation to be tried on fraud and bribery charges, a Quebec court judge has ruled.
SNC-Lavalin spent months lobbying the federal government to avoid finding itself in this position. It hoped to use a new legal mechanism — a deferred prosecution agreement (DPA) — to pay a fine rather than risk conviction.
But its efforts ignited a major political scandal in Ottawa when the former attorney general, Jody Wilson-Raybould, accused the Prime Minister’s Office of pressuring her to arrange a deal for SNC-Lavalin.
The court’s decision was handed down in Montreal on Wednesday. It followed an extended preliminary inquiry into accusations from federal prosecutors in 2015.
They allege SNC-Lavalin paid around $48 million in bribes to Libyan officials between 2001 and 2011, a violation of the Corruption of Foreign Public Officials Act.
Federal prosecutors also allege SNC-Lavalin defrauded a number of Libyan institutions out of $130 million over the same period.
Fair trial
Prosecutor Richard Roy said he was satisfied with the court’s decision.
“We’re in the Canadian justice system. Obviously, in Canada, SNC-Lavalin will have a fair trial,” he said, speaking to reporters after the ruling was made.
The contents of the ruling are under a publication ban.
The three corporate entities named in the case — SNC-Lavalin International, SNC-Lavalin Construction and Groupe SNC-Lavalin — will be back in court June 7, where they will indicate if they want a trial by jury or by judge.
SNC-Lavalin chief executive officer Neil Bruce said the judge’s ruling was expected.
“These charges relate to alleged wrongdoings that took place seven to 20 years ago by certain former employees who left the company long ago,” he said in a statement.
Laid out evidence
“We are pursuing those who committed the wrongdoings.”
During the preliminary inquiry, which began in the fall, prosecutors laid out their evidence before a Quebec Court judge in Montreal.
They had to demonstrate a reasonable prospect of conviction, which is a lower burden of proof than they’ll have to meet at trial.
Lawyers for SNC-Lavalin argued the government’s case didn’t merit a trial. The proceedings are covered by a publication ban.
10-year ban
Justice Claude Leblond had the option of halting the proceedings against the company if he determined the evidence was insufficient to merit a trial.
If SNC-Lavalin is found guilty of the charges, it could face a 10-year ban on receiving federal government contracts.
Bruce has said that such a penalty would devastate the company, which has struggled since it was enveloped by a series of corruption scandals in 2012.
The corporation lost around $2.2 billion in market value after federal prosecutors announced last fall they would not be offering a DPA.
Its price on the Toronto Stock Exchange was down by more than four per cent by 11:15 a.m. ET Wednesday.
from Update Trend News https://updatetrendnews.com/snc-lavalin-to-stand-trial-on-corruption-charges-quebec-judge-rules-cbc-news/
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