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    Several former executives of the engineering firm SNC-Lavalin are alleged to have participated in widespread bribery and corruption. The Royal Canadian Mounted Police allege over $118 million was funneled through offshore accounts as bribes to obtain contracts in Libya. Investigations also uncovered evidence of bribes paid to win contracts in Africa and Asia. Almost a dozen former executives face criminal charges. The company has been banned from World Bank funded projects for 10 years. SNC-Lavalin recently acknowledged unethical behavior occurred and said the board of directors was unaware of illegal actions by some executives.

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    Case Study

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    athira jumat
    340 views1 page
    Several former executives of the engineering firm SNC-Lavalin are alleged to have participated in widespread bribery and corruption. The Royal Canadian Mounted Police allege over $118 million was funneled through offshore accounts as bribes to obtain contracts in Libya. Investigations also uncovered evidence of bribes paid to win contracts in Africa and Asia. Almost a dozen former executives face criminal charges. The company has been banned from World Bank funded projects for 10 years. SNC-Lavalin recently acknowledged unethical behavior occurred and said the board of directors was unaware of illegal actions by some executives.

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    Several former executives of the engineering firm SNC-Lavalin are alleged to have participated in widespread bribery and corruption. The Royal Canadian Mounted Police allege over $118 million was funneled through offshore accounts as bribes to obtain contracts in Libya. Investigations also uncovered evidence of bribes paid to win contracts in Africa and Asia. Almost a dozen former executives face criminal charges. The company has been banned from World Bank funded projects for 10 years. SNC-Lavalin recently acknowledged unethical behavior occurred and said the board of directors was unaware of illegal actions by some executives.

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    © All Rights Reserved
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    340 views1 page

    Case Study

    Uploaded by

    athira jumat
    Several former executives of the engineering firm SNC-Lavalin are alleged to have participated in widespread bribery and corruption. The Royal Canadian Mounted Police allege over $118 million was funneled through offshore accounts as bribes to obtain contracts in Libya. Investigations also uncovered evidence of bribes paid to win contracts in Africa and Asia. Almost a dozen former executives face criminal charges. The company has been banned from World Bank funded projects for 10 years. SNC-Lavalin recently acknowledged unethical behavior occurred and said the board of directors was unaware of illegal actions by some executives.

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    Case Study: SNC-Lavalin Group Inc. 11/11/20 Case Study: SNC-Lavalin Group Inc. By Steven L.

    McShane,
    University of Newcastle (Australia) Bribery of foreign public offcials, conspiracy to commit fraud and
    forgery, money laundering, possessing property obtained by crime, and attempts to secretly smuggle
    the son of a former dictator into safer countries. Sounds like the plot of a twisted crime novel. Yet these
    are the charges laid against former executives at SNC-Lavalin (SNCL), one of Canada’s largest
    engineering and construction frms. The Royal Canadian Mounted Police (RCMP) allege that over the past
    decade SNCL funneled CAD $118 million through offshore bank accounts as bribes to secure contracts in
    Libya. Separately, the World Bank, the African Development Bank, Swiss police, and other entities have
    uncovered evidence that SNCL bribed or attempted to bribe government staff and leaders to win
    contracts in Africa and Asia. SNCL is also being investigated for unethical activities in contract bidding on
    a major Canadian project involving a Montreal superhospital. Almost a dozen former SNCL executives,
    most of whom held senior positions, either face charges of criminal activity or are under investigation.
    The company and its 100 subsidiaries have been banned for a decade from bidding on World Bank–
    funded contracts. The World Bank and other investigators report that in several contracts SNCL
    processed bribes through an expense line called “project consultancy cost” or PCC. For example, SNCL
    recently settled a corruption case fled by the African Development Bank, which had discovered project
    consultancy cost items representing 7.5 percent of the total contract value of two SNCL road projects in
    Uganda and Mozambique. The engineering frm recently acknowledged that n... ... said: “Clearly, our
    board of directors can’t govern something that they don’t know about, or prevent something they are
    not aware of.” Discussion Questions Explain how moral sensitivity and moral intensity apply to the
    unethical behavior among several SNC-Lavalin executives and other staff. This case describes several
    incidents of unethical and illegal behavior at SNC-Lavalin. To what extent did motivation, ability, role
    perceptions, and situation (i.e., MARS model from Chapter 1) infuence this behavior among executives
    and employees? How did the personal values of these people affect their actions? What steps should
    SNC-Lavalin and other companies in this situation take to minimize these types of corporate
    wrongdoing? Sources: J. Castaldo, “SNC Lavalin’s Missing Millions Mess: Is Ben Aïssa Responsible?,”
    Canadian Business, July 9, 2012; T. McMahon and C. Sorensen, “Boardroom Blunders at SNC-Lavalin,”
    Maclean’s, December 5, 2012, 24; D. Seglins, “SNC-Lavalin International Used Secret Code for ‘Bribery’
    Payments,” CBC News, May 15, 2013; “SNC-Lavalin Says Former Executive’s Illegal Actions Justify Firing,”
    Maclean’s, May 17, 2013; J. Nicol and D. Seglins, “RCMP Moving to Freeze Assets in Widening SNC-
    Lavalin Probe,” CBC News, May 23, 2013; B. Hutchinson, “The ‘Clandestine World’ of SNC’s Fallen Star,”
    National Post (Toronto), March 19, 2015, FP1; R. Marowits, “SNC-Lavalin Settles Corruption Case
    Brought by African Development Bank,” Canadian 1 of 2 11/11/20 Press, October 2, 2015; “SNC-Lavalin
    Executive Claims He Was Scapegoat in Gadhaf Bribery Scheme,” Global Construction Review (London),
    September 14, 2015; R. Marowits, “SNC-Lavalin Still Hoping to Resolve Criminal Charges as Hearing Set
    for 2018,” Canadian Press, February 27, 2016.

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