SNC puts on a brave face as Lamarre exits

MONTREAL — The former chief executive of Canada’s biggest engineering firm has been formally charged with fraud. Pierre Duhaime was not in court this morning and was represented by a lawyer who pleaded not guilty on behalf of the former SNC-Lavalin executive. Duhaime faces charges of fraud, conspiracy to commit fraud and issuing false documents.

MONTREAL — The Quebec Court of Appeal has rebuffed the provincial securities regulator, which feared there was a risk of “collusion” if SNC-Lavalin auditors were given details about its investigation into the scandal that has engulfed the engineering giant. In a ruling issued Wednesday, Quebec’s highest court supported the review office of l’Autorite des marches financiers, which allowed an SNC-Lavalin executive under investigation to provide details to the company’s audit committee and external auditors Deloitte & Touche.

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 — 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.

The deadline for submitting the all-important financing proposals for construction of the McGill University Health Centre’s super-hospital was fast approaching when the chief executive of SNC-Lavalin Group Inc. and his vice-president in charge of construction exchanged a series of emails. It was November 2009, and SNC led one of two consortiums bidding on the project valued at more than $1-billion.

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.

MONTREAL – Stung by problem executives and with its reputation badly damaged, SNC-Lavalin Group Inc. is now dogged by problem contracts that are hurting its financials.

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.