Former justice minister Jody Wilson-Raybould’s refusal to interfere in the prosecution of Quebec-based engineering and construction giant SNC-Lavalin, despite apparent pressure from the Prime Minister’s office and other government officials, means the company is likely headed for a court showdown on criminal fraud and corruption charges over alleged bribery in Libya.
If convicted, the company could face a 10-year ban on bidding for Canadian government contracts. It could also find itself restricted from some international work, with bodies such as the World Bank cracking down on corruption.
A criminal proceeding couldn’t come at a worse time for SNC, which is already struggling with the underperformance of its mining and oil and gas segments, as well as the fallout from a diplomatic spat between Canada and Saudi Arabia, where SNC has significant operations. Those issues forced SNC to issue two profit warnings in recent weeks, and to slash its dividend.
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