SNC-Lavalin has reached a settlement with the African Development Bank Group (AfDB) regarding allegations of sanctionable practices on AfDB-funded contracts in Mozambique and Uganda. The company said the case relates to the actions of a former employee on contracts awarded in 2008 and 2010.
SNC-Lavalin International Inc., the subsidiary involved in the allegations will not be debarred from AfDB-funded work. No other subsidiary of SNC-Lavalin will be sanctioned pursuant to the agreement. However, one of the conditions is that the company pays CA$ 1.5 million (US$ 1.1 million) to support of anti-corruption initiatives in Africa.
Robert G. Card, president and CEO of, SNC-Lavalin Group said, “This settlement agreement demonstrates SNC-Lavalin’s commitment to the highest standards of business ethics and is proof that companies can engage in a constructive dialogue and find effective means to reward remediation while allowing companies to move forward. Our cooperation with the AfDB clearly shows our efforts to become a global benchmark in ethics and compliance in our industry with a system designed to promote integrity through prevention, detection and remediation.”
Among the initiatives SNC-Lavalin has undertaken to improve its ethical performance the creation of the post of chief compliance officer, who reports to the Board. It has also creating a dedicated ethics and compliance team, produced a dedicated anti-corruption manual and opened a compliance hotline for reporting any breaches of policy. Annual compliance training is offered to all employees, with a special focus on those working in strategic roles.