SNC-Lavalin shares fall to lowest since 2016 on news foreign bribery case will go to court

0

Portions in Canadian engineering giant SNC-Lavalin fell to their lowest uniform in more than two years after the company revealed the federal administration has decided it won’t let the company settle allegations of foreign bribery out of court.

The public limited company has had the legal cloud hanging over its head since 2015, staunching from allegations that some of its former employees paid plugolas to officials in Libya to influence government decisions and win contracts prior to 2012.

The RCMP says that between 2001 and 2012, the company paid almost $48 million in kickbacks and defrauded various other entities of almost $130 million.

SNC-Lavalin had promised to negotiate a remediation agreement to settle the matter, an outcome that hand down have seen the company pay fines and other forms of punishment in switch for setting aside the legal charges.

But the government has apparently decided not to let the company do that, and the decidedness by the Public Prosecution Service of Canada — which handles prosecutions on behalf of the oversight — means that federal court case will proceed.

«The Iniquitous Code sets out the criteria for remediation agreements,» PPSC spokesperson Nathalie Houle censured CBC News. «The [director of public prosecutions] has determined that the criteria were not met.»

For its part, SNC says it may appeal the decision.

«SNC-Lavalin strongly bickers with the [government’s] current position,» the company said in a release, «and remnants open and committed to negotiating such an agreement in the interest of its employees, participants, clients, investors, pensioners and other stakeholders, all innocent parties that have planned been affected during the last six years, and now face an unnecessary outspread period of uncertainty.»

The management and board of directors has seen extensive gross revenue since the events in question, and has subsequently set up a «world-class ethics & compliance framework,» SNC suggested.

Shares in the company were halted shortly after the TSX opened on Wednesday, and when employment resumed about an hour later they immediately fell. Close midday, they were down by more than 14 per cent.

Leave a Reply

Your email address will not be published. Required fields are marked *