19 April 2013
The World Bank Group has debarred SNC-Lavalin Inc. and over 100 affiliates for 10 years following the company’s misconduct in relation to the Padma Multipurpose Bridge Project in Bangladesh, as well as misconduct under another Bank-financed project.
SNC-Lavalin Inc. is a subsidiary of Canadian engineering giant SNC-Lavalin Group and represents more than 60% of its business.
The debarment is part of a negotiated resolution agreement between the World Bank and SNC-Lavalin Group following a World Bank investigation into allegations of bribery schemes involving SNC-Lavalin Inc. and officials in Bangladesh.
While the investigation was ongoing, the World Bank’s Integrity Vice Presidency also learned of misconduct by SNC-Lavalin Inc. in relation to the World Bank-financed Rural Electrification and Transmission project in Cambodia.
In a statement SNC-Lavalin said that revenues generated from World Bank projects represented only one per cent of the company’s annual revenues.
"The company’s decision to settle signals our determination as we go forward to set standards for ethics in business conduct and for good governance that are beyond reproach," said Robert G Card, president and CEO of SNC-Lavalin Group Inc. "The company has already taken, and will continue to take, measures to ensure rigorous compliance and control procedures are in place."
For the World Bank, Leonard McCarthy, World Bank integrity vice president, said: "This case is testimony to collective action against global corruption. Once we had evidence of the company’s misconduct, we referred the matter to the Royal Canadian Mounted Police whilst the World Bank finalized its investigation. Going forward, I hope that SNC-Lavalin’s commitment under this agreement represents meaningful action in deterring the risks of fraud and corruption to development projects."

