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MONTREAL –
MONTREAL – A supervisory body in Quebec has four subsidiaries of SNC-Lavalin Group Inc. Blacklisted to bid on public contracts in the province for five years.
The prohibition by the Autorite des marches was activated after the engineering giant’s construction division had declared guilty in December of one count of fraud related to business transactions in Libya.
A spokesperson for SNC-Lavalin said the shift from major building contracts to its technical roots minimizes the potential damage from a bid ban.
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“Although it is possible that the guilty plea of the subsidiary may entail risks in the short term, the company believes that these risks will be manageable and does not expect that the plea in the long term will have a material adverse effect on the overall business activities of the subsidiary. company, “said Nicolas Ryan spokesperson in an email.
The four subsidiaries are excluded from public procurement until January 2025 and are SNC-Lavalin Exploitation, as well as the building divisions of SNC, Quebec, Ontario and Atlantic.
The plea with federal prosecutors included a fine of $ 280 million and covered a scandal that eroded the reputation of the company in Montreal and trapped the highest office of the Canadian government.
It also released SNC-Lavalin from the damaging prospect of banning federal contract bids.
Nearly one-third of SNC-Lavalin’s revenue in 2017 was $ 9.3 billion from Canada, a decrease of around 60 percent from revenue in 2014. Analysts estimate that up to half of turf revenue comes from federal contracts and a smaller portion of courtesy from Quebec.
The supervisory authority added the subsidiaries of SNC to its list of non-eligible companies on Wednesday.
According to the Authority, the blacklist was established in 2018 and is intended to “prevent, combat and punish certain fraudulent practices in the construction sector”.
This report from The Canadian Press was first published on February 6, 2020.
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