MONTREAL — SNC-Lavalin (TSX:SNC) will pay $1.5 million and accept certain conditions to settle a corruption case brought against the company by the African Development Bank Group.
The regional development bank says the settlement resolves allegations, which SNC didn't contest, that former employees of SNC-Lavlain International Inc. ordered illicit payments to public officials to secure two contracts in two African countries.
The development bank said one of the contracts was awarded to SNC in October 2008 to supervise construction of a road and bridge in Mozambique. The other contract was awarded in 2010 to supervise a road upgrade in Uganda.
Neither the SNC nor the AfDB identified the individuals at the centre of the allegations in their statements.
In addition to the monetary penalty, SNC has agreed to meet certain undisclosed conditions for two years and 10 months.
The AfDB acknowledged that SNC co-operated in the investigation and demonstrated a willingness to change its practices.
"The sanctions imposed under the settlement agreement reflect the level of co-operation provided by the company in the investigation of the matter," said Anna Bossman, director of the development bank's anti-corruption department.
"SNC-Lavalin has demonstrated that it has undergone significant changes in the past two years, continuously improving ethics and compliance in its operations under a new management."
A Canadain criminal fraud case against SNC-Lavalin is working its way through the court system.
The RCMP alleges that SNC-Lavalin paid nearly $47.7 million to public officials in Libya between 2001 and 2011 to influence government decisions.
It also charged the company, its construction division and its SNC-Lavalin International subsidiary with one charge each of fraud and one of corruption for allegedly defrauding various Libyan organizations of about $129.8 million.
SNC has said it will plead not guilty and that the charges stem from the same alleged activities of former employees who face criminal charges.
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