On November 6, 2014 in Montreal. SNC-Lavalin Group is cutting its quarterly dividend for shareholders by 80 per cent as the troubled construction and engineering company grapples with a $2.12 billion net loss in its second quarter. THE CANADIAN PRESS/Paul Chiasson

SNC-Lavalin pleads guilty to fraud, will pay a $280M fine for Libyan work

The criminal cases are separate, but both relate to allegations of corruption and fraud in Libya

A division of SNC-Lavalin Group Inc. will plead guilty to a charge of fraud and pay a $280-million penalty related to work the company did in Libya.

The plea deal comes on the heels of the conviction of a former top SNC-Lavalin executive last Sunday.

The criminal cases are separate, but both relate to allegations of corruption and fraud in Libya going back roughly two decades.

The company and two of its subsidiaries face charges that they paid nearly $48 million to public officials to influence government decisions under the late dictator Moammar Gadhafi’s regime between 2001 and 2011.

READ MORE: New SNC-Lavalin CEO says plea deal unlikely despite Liberal election win

The case also includes charges of fraud and corruption against the company for allegedly defrauding various Libyan organizations of roughly $130 million in a case that ensnared the company as well as the federal Liberal government in a political controversy.

Experts say the jury verdict Sunday that found former executive Sami Bebawi guilty of paying off foreign officials as he worked to secure contracts for the firm may have a bearing on the prosecution of the company. They say the case could hinge on whether senior SNC officials acted with the company’s blessing.

SNC-Lavalin Group Inc. shares were halted prior the news.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Laid-off hotel workers demanding the right to return to work at Victoria protest

Businesses in accommodation and food sector report laying off 80 per cent of workforce

UPDATE: Missing Langford teens found safe

Pair were headed to Lake Cowichan/Youbou area, last heard from in North Cowichan

Camping offers a great pandemic escape, for less money than you might think

But for many first-timers, knowing what to bring can be a challenge

Turbulence in Canadian opinion on airlines COVID-19 response: poll

Thousands of people have beseeched Transport Minister Marc Garneau to compel airlines to issue refunds,

Police issue warning after baby comes across suspected drugs in Kamloops park

The 11-month-old girl’s mother posted photos on social media showing a small plastic bag containing a purple substance

Collision results in train derailment just east of Golden

The derailment occurred Sunday night, according to a statement from CP

Lower Mainland woman says llama farming neighbour shot her 11-month-old pup

Young dog was on owner’s Maple Ridge property when it was killed on June 21

B.C. records 31 new cases, six deaths over three days due to COVID-19

There are 166 active cases in B.C., 16 people in hospital

B.C. highway widening job reduced, costs still up $61 million

Union-only project scales back work to widen Trans-Canada

Most Read