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

Just Posted

Provincial COVID-19 data can now be used for B.C. to prepare for a second wave

In the past week, B.C. has seen a slight spike in daily test-positive case counts

Clearwater Elks taking a hit because of COVID-19

President Marnie Burnell noted the group was already hurting before the pandemic came into effect

Back in Time

Historical Perspective

YCS receives support from Interior Savings’ relief fund

Money will go toward food programs and new technology to improve operations

VIA Rail lays off 1,000 unionized workers across the country

Northern B.C. route Jasper to Prince George to Prince Rupert is not affected by VIA Rail layoffs

Islanders want BC Ferries to follow order that lets residents board before tourists

For ferry-dependent communities, ferries are often the sole practical lifeline to work, school or medical appointments.

Beverly Hills 90210 star’s family selling Vancouver Island Beach Resort

You can own Jason Priestley’s Terrace Beach Resort in Ucluelet for less than $5 million

Genetic detectives begin work to trace spread of COVID-19 in Canada

The kinds of genetic technology being used for this project did not exist when SARS hit Canada in 2003

Sports fishers protest Fraser River Chinook closures

Public Fishery Alliance wants hatchery fish open for harvest

Amber Alert for two Quebec girls cancelled after bodies found

Romy Carpentier, 6, Norah Carpentier, 11, and their father, Martin Carpentier, missing since Wednesday

Bringing support to Indigenous students and communities, while fulfilling a dream

Mitacs is a nonprofit organization that operates research and training programs

B.C. man prepares to be first to receive double-hand transplant in Canada

After the surgery, transplant patients face a long recovery

Grocers appear before MPs to explain decision to cut pandemic pay

Executives from three of Canada’s largest grocery chains have defended their decision to end temporary wage increases

Most Read