SNC settles African Development Bank corruption allegations

MONTREAL—SNC-Lavalin has reached a settlement with the African Development Bank Group regarding allegations of “sanctionable” practices by one of its subsidiaries.

The settlement follows allegations leveled against SNC-Lavalin International Inc. by the Integrity and Anti-Corruption Department of the AfDB surrounding the company’s connection to certain AfDB-financed contracts in Mozambique and Uganda.

Under the agreement, which relates to the alleged actions of former SNC employees in connection with contracts awarded in 2008 and 2010, SNC-Lavalin International will not be debarred. SNC, however must meet certain conditions for a period of 34 months and make a settlement payment of $1.5 million to support anti-corruption initiatives in Africa. The company said all other specifics regarding the agreement will remain confidential.

“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,” Robert Card, president and CEO of SNC-Lavalin, said. “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.”

As a result of this and other corruption allegations, SNC said it has made significant changes to the company over the past three years, as well as reinforced its Ethics and Compliance program with huge investments in time and money. Among other initiatives, the company has created a position for a chief compliance officer and a dedicated ethics and compliance team.