Canada NewsWire
MONTREAL, May 11, 2022
MONTREAL, May 11, 2022 /CNW Telbec/ - SNC-Lavalin (TSX: SNC), a fully integrated professional services and project management company with offices around the world, announces the Quebec Superior Court's approval of a remediation agreement (the "Remediation Agreement") following negotiations between the Company and the Quebec Crown Prosecutor's Office (DPCP). The Company considers the remediation agreement to be fair and equitable, while allowing it to continue its operations and protect more than 30,000 jobs as well as the interests of its customers, investors and other stakeholders.
On September 23, 2021, the DPCP invited SNC-Lavalin to negotiate a remediation agreement in relation to charges laid against SNC-Lavalin Inc. and SNC-Lavalin International Inc. in connection with facts that occurred between 1997 and 2004. The Charges were related to the Jacques Cartier Bridge Refurbishment, a $128 million project of which SNC-Lavalin was a 50 percent consortium partner. SNC-Lavalin cooperated with the investigation of the authorities that led to the Charges.
Remediation Agreement
The remediation agreement includes the following provisions:
1. SNC-Lavalin's Financial Obligations
TITLE | SCHEDULE | AMOUNT |
Forfeiture of | 30 days after the date of court approval | $2,490,721 |
Penalty | 6 equal instalments of $3,022,522.50 to be made between June 30, 2023, | $18,135,135 |
Victim Surcharge | Payable in 6 equal instalments of $906,756.83, on the same due dates as | $5,440,541 |
Reparations to the | 30 days after the date of court approval | $3,492,380 |
TOTAL FINANCIAL OBLIGATIONS | $29,558,777 |
2. Appointment of an Independent Monitor
The remediation agreement provides for the appointment of Mark Morrison Q.C. and Simon Seida of the law firm BLAKE, CASSELS & GRAYDON LLP to act as independent monitor for a period of three (3) years. The role of the independent monitor will include the following:
3. Legal Effects of the Remediation Agreement
In accordance with the applicable provisions of the Criminal Code, following approval of the Remediation Agreement the charges against SNC-Lavalin Inc. and SNC-Lavalin International Inc. have been suspended and will be discontinued at the end of its term if all conditions have been met.
"We hope this Remediation Agreement approved by the Court will allow us to turn the page on these events, which occurred almost 20 years ago. Today, our employees know better than anyone the path we have taken in recent years to implement a world-class integrity program. We have extensively transformed the company in terms of governance, operations and culture, while continuing to draw on relevant best practices. We operate at the highest ethical standards, and the quality of our integrity program is now recognized as a gold standard program by independent third parties," said Ian L. Edwards, President and CEO, SNC-Lavalin Group Inc.
Prevent, detect and respond to any risk of wrongdoing
For almost 10 years now, SNC-Lavalin has been implementing extensive changes in terms of governance, operations and culture, while continuing to draw on relevant best practices.
Governance: an effective, transparent, and independent integrity program
Operations: an integrity program that fosters and enables ethical decision-making
Culture: a culture of integrity that promotes communication and ownership
About SNC-Lavalin
Founded in 1911, SNC-Lavalin is a fully integrated professional services and project management company with offices around the world dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to design, deliver and operate the most complex projects. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. We deliver to clients in key strategic sectors such as Engineering Services, Nuclear, Operations & Maintenance and Capital. You can find relevant news and information at snclavalin.com or follow us on LinkedIn and Twitter.
SOURCE SNC-Lavalin
View original content: http://www.newswire.ca/en/releases/archive/May2022/11/c0489.html
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