A division of SNC-Lavalin Group Inc (TSX:SNC) pleaded guilty to one fraud charge and will pay a $280-million fine related to projects in Libya. It's a case that engulfed Prime Minister Justin Trudeau's government in crisis.
The Montreal-based construction and engineering company said it reached a settlement after being accused of bribing Libyan officials to get contracts between 2001 and 2011. Shares in SNC, which were halted on the Toronto Stock Exchange early on Wednesday, soared as much as 35.3% to $32.59 following the announcement.
On Sunday, a Quebec jury found a former top SNC-Lavalin executive guilty of fraud and corruption charges related to the Libya case. Government prosecutors had suggested Sami Bebawi, the former head of SNC's international construction arm, was a key figure in the bribery scheme.
In a statement, SNC said its SNC-Lavalin Construction unit will plead guilty to a fraud charge.
As part of the settlement, all charges against SNC-Lavalin Group Inc and its international marketing arm, SNC-Lavalin International Inc, have been withdrawn, the company said.
Besides paying the fine, SNC-Lavalin Construction will be subject to three years probation, and will engage an independent monitor as part of the probation.
A court conviction would have barred SNC-Lavalin from bidding on government contracts for 10 years, threatening job losses in Canada. The company employs around 9,000 people in Canada and tens of thousands abroad.
The construction unit has not bid on any new contracts since 2015, and SNC said it does not expect the division's guilty plea to affect the company's ability to compete for future projects.
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