Blog from Neil Bruce
Dear SNC-Lavalin team,
As you may have seen in our latest press release, we have announced today that we have reached a settlement agreement with the African Development Bank Group (AfDB) regarding alleged payments ordered by former employees of SNC-Lavalin International Inc., a subsidiary of the company, in connection with certain AfDB-financed contracts in Mozambique and Uganda in 2008 and 2010. The conclusion, in essence, is a settlement payment of $1.5M in support of anti-corruption initiatives in Africa.
The agreement relates to actions of former employees in connection with contracts awarded in 2008 and 2010. Since 2012, we are working closely with authorities in order to uncover all ethics-related issues from the past. This settlement is another example of SNC-Lavalin’s commitment to move forward on allegations concerning former employees. We have consistently said that we have always been and remain willing to reach settlements on issues of the past.
I am happy to say that our combined efforts, transparency and open dialogue allowed both the AfDB and SNC-Lavalin to find effective means to balance accountability and reward remediation, while allowing us to move forward. It is important to note that under the terms of this settlement agreement, SNC-Lavalin International Inc. will not be debarred, provided SNC-Lavalin meets certain conditions for a period of two years and ten months. Also, no other subsidiary of SNC-Lavalin will be sanctioned pursuant to the agreement.
Becoming a benchmark in ethics and compliance
We have made tremendous progress over the past 3 years in the area of ethics and compliance. This has been commented upon, and we can say that we are on track to becoming a model of ethics and compliance and this is thanks to you.
We must continue our work and remain extra vigilant to ensure we follow our code of ethics and business conduct at all times. Keep in mind that we have resources to help us, which is why you should feel free to speak to your compliance officer when the time comes to apply any of the rules in our Code of Ethics and Business Conduct.
Summary
In summary, this announcement shows that our approach in resolving any ethics-related matter is the right one, as it allowed us, in this case, to reach an agreement without materially impacting our short- or long-term strategy.
Neil