The federal government is facing renewed scrutiny over its continued use of Lafarge Canada Inc. as a contractor and recipient of public funds, after Conservative MPs raised concerns that the company remains eligible for federal work despite foreign court findings involving terrorism financing by its former parent company.At the Commons government operations committee, Conservative MP Kelly McCauley (Edmonton West) questioned why departments are still engaging with Lafarge, arguing the arrangement appears inconsistent with the federal Integrity Regime designed to bar firms implicated in serious criminal wrongdoing.“It seems to very clearly violate the Integrity Regime,” McCauley said, pointing to what he described as a pattern of government contracts and funding flowing to the company despite its corporate history.“There’s a company that has received a fair amount of grants and contributions from the government but also contracts,” he added. “Lafarge has been recently convicted in France and the United States for bribing ISIS and other terrorist entities.”Blacklock's Reporter says court findings in France on April 13 determined that executives tied to Lafarge’s former parent company were guilty of paying millions in bribes to Islamic State fighters in 2013. The payments were reportedly made to keep a cement facility operating in northern Syria. The company previously acknowledged the underlying facts in a 2022 settlement with U.S. authorities.Under the federal Integrity Regime introduced in 2015, companies found guilty of offences under Canadian law or equivalent foreign convictions can be barred from federal contracts for up to 10 years. Despite this, Lafarge Canada has remained eligible for federal procurement and, since 2016, has received approximately $46.6 million in federal loans and grants, along with more than $580,000 in contracts from agencies including Parks Canada, the Correctional Service of Canada, and the Department of National Defence..McCauley questioned why the firm continues to appear on the federal bidders’ list.“Why?” he asked.The Department of Public Works indicated it would respond in writing, but did not immediately address whether Lafarge’s eligibility is under review or whether any exemptions have been applied.The committee exchange comes amid broader concerns about inconsistent enforcement of the Integrity Regime, which was designed to ensure uniform consequences for companies involved in corruption or criminal conduct.Members also referenced past federal decisions involving SNC-Lavalin Group Inc., which avoided being permanently blacklisted despite a 2019 Québec Superior Court outcome that included a $280 million penalty linked to fraud-related charges.The company and its executives have also faced allegations involving forgery, bid rigging, and improper political donations totalling $109,616 to Liberal Party organizers. Internal government records obtained through access-to-information requests show officials met privately with SNC-Lavalin representatives to discuss remediation efforts and whether the company had “learned its lessons.”A 2022 briefing note from Public Works suggested continued federal contracting was justified because some of the alleged misconduct dated back decades, though that limitation is not explicitly set out in the Integrity Regime itself..“The Government of Canada is committed to taking action against improper, unethical and illegal business practices and to holding companies to account for such misconduct,” the briefing note stated, while also noting SNC-Lavalin remained a valued supplier for engineering and architectural services tied to federal infrastructure projects.“SNC-Lavalin provides various architecture and engineering services in support of the Department of Public Works’ real property projects,” the document said. “Contracts have been awarded.”
