MONTREAL — SNC-Lavalin says it was justified in firing a former executive last year because it claims he acted illegally to help smuggle the son of Libya dictator Moammar Gadhafi to Mexico.
The engineering giant is defending itself against a nearly $1-million wrongful dismissal lawsuit filed by former controller Stephane Roy.
A newly unsealed police affidavit alleges that unidentified administrators of McGill University Health Centre committed fraud in the awarding of a $1.3-billion contract to SNC-Lavalin Group to build a superhospital in Montreal.
The document confirms for the first time that police suspect one or more MUHC managers were involved in the corruption scandal that has ensnared Canada’s largest engineering firm.
SNC-Lavalin’s former chief executive, Pierre Duhaime, was arrested last November for fraud and using forged documents in connection with the hospital project.
MONTREAL – A senior executive with SNC-Lavalin Group Inc. who said last month that he had “no choice” but to cheat to win one of Canada’s biggest hospital projects has left the engineering firm.
Charles Chebl, who was SNC’s executive vice-president of general construction, is no longer working with the company, SNC spokeperson Lilly Nguyen confirmed by email Tuesday. His departure was first reported by Radio Canada.
SNC-Lavalin Group Inc. is demanding that all independent consultants it does business with complete an “ethics exam” by the end of the year or risk losing their contracts with the company.
The move has provoked indignation among some of those consultants, one of whom denounced “the absurdity” of the engineering giant unilaterally forcing its will on its business associates to attempt to repair its battered reputation.
MONTREAL – Canadian engineering giant SNC-Lavalin Group Inc. has hired Watergate investigator Michael Hershman to advise the company on anti-corruption issues as it takes steps to strengthen its business practices amid ongoing police investigations and allegations of wrongdoing involving former employees.
It was around Christmas 2011 when the first whiff of potential impropriety wafted up to the nerve centre at Canada’s largest engineering and construction firm. The board of directors at multinational giant SNC-Lavalin Group Inc. were stunned to learn of claims that the company’s then chief executive Pierre Duhaime, and possibly others in his senior management circle, may have misallocated funds to projects in far away places.
Accused of fraud, former SNC-Lavalin Group Inc. chief executive Pierre Duhaime left the company with a retirement payout potentially worth $13.2-million including stock options. And the engineering giant has no way other than suing him to try to get the money back.
That’s the view of Luis Navas, an executive compensation specialist with Toronto-based Global Governance Advisors, whose clients include Bank of Montreal.
MONTREAL — The head of infrastructure concession investments at SNC-Lavalin is retiring just months after the engineering giant announced his shift from the position as chief financial officer.
Gilles Laramee, who joined the Montreal-based company in 1986, will retire on Aug. 9. He was replaced as CFO last month by Alain-Pierre Raynaud, a former executive of French nuclear giant Areva.
MONTREAL — Troubled engineering giant SNC-Lavalin has hired a former Siemens executive to guide the company on ethics and matters of corporate governance.
Andreas Pohlmann will begin his duties as chief compliance officer on March 1, SNC-Lavalin said Friday.
Former SNC CEO Pierre Duhaime and another former top executive, Riadh Ben Aissa, are facing fraud charges stemming from a contract involving the building of the multibillion-dollar McGill University Health Centre in Montreal.
MONTREAL – Quebec’s special anti-corruption police squad has arrested former SNC-Lavalin Inc. chief executive Pierre Duhaime.
Montreal media outlets reported the arrest Wednesday morning. A spokesman for the squad did not immediately return calls.
SNC shares fell 1.5% to $40.29 in morning trading as the news spread.