The Department of Public Works in a briefing note says it continues to do business with SNC-Lavalin Group Inc. since criminal charges against the company “relate to alleged misconduct from 20 years ago.” SNC-Lavalin was the first company in Canada to win an out of court settlement under new provisions of the Criminal Code..“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,” said a briefing note. “The charges laid in September 2021 relate to alleged misconduct from 20 years ago.”.According to Blacklock's Reporter, SNC-Lavalin last September 23 was charged with fraud, forgery and conspiracy to defraud taxpayers over a $128 million contract on Montréal’s Jacques Cartier Bridge. A settlement called a “deferred prosecution agreement” allowed the company to avoid blacklisting as a federal contractor..“This is the first time a Canadian company has received an invitation to negotiate such an agreement,” company executives wrote in a statement at the time. “SNC-Lavalin has always been and remains willing to reach a reasonable and fair solution.”.The public works department briefing note said staff considered the company a reliable supplier. “SNC-Lavalin provides various architecture and engineering services in support of the Department of Public Works’ real property projects,” aid the note. “Contracts have been awarded.”.The company since 2019 was fined $280 million for fraud over bribes paid to win construction contracts in Libya. SNC-Lavalin was also fined $1.9 million under the Competition Act for bid-rigging in Québec..A former company executive in 2018 was convicted in Québec Superior Court of bribery, fraud and laundering the proceeds of crime. In 2014 a second executive pleaded guilty to bribery in a Swiss Court. A third executive pleaded guilty to fixing $109,616 in illegal campaign contributions to Liberal Party organizers in breach of the Canada Elections Act. He was fined $2,000..Cabinet in 2018 wrote the “deferred prosecution” clause into the 531st page of a 560-page omnibus budget bill. MPs protested at the time..“A deferred prosecution agreement basically allows you to not have any consequences in a court of law,” Conservative MP Dan Albas (Central Okanagan-Similkameen, B.C.) told a 2018 hearing of the Commons finance committee. “Big corporations can get a get-out-of-jail card free.”.The Department of Public Works in a 2017 report acknowledged out of court settlements were controversial. “The chief argument that has been made against deferred prosecution agreements is they may not deter misconduct,” said the report Expanding Canada’s Toolkit To Address Corporate Wrongdoing. “Some argue that agreements have become a ‘cost of doing business.’”
