SNC-Lavalin Agrees to Settle with World Bank Group
MONTREAL, April 17, 2013 /CNW Telbec/ - SNC-Lavalin Group Inc. (TSX: SNC) announces that a settlement has been reached with the World Bank Group in connection with the previously announced investigations. While the specific terms of the settlement are confidential, it includes the suspension of the right to bid on and to be awarded World Bank Group-financed projects by SNC-Lavalin Inc., a subsidiary of the Company, and its controlled affiliates for a period of 10 years. The suspension could be lifted after eight years, if the terms and conditions of the settlement agreement are complied with fully. The settlement also requires that the Company cooperate with the World Bank on various compliance matters in the future. The settlement does not include a financial penalty.
The Company launched an internal investigation when this matter was first brought to its attention and has worked closely with the World Bank throughout the settlement process.
"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."
The Company recently hired a world-renowned leader in corporate governance as Chief Compliance Officer and is working closely with recognized independent experts in compliance, anti-corruption and governance. The Code of Ethics and Business Conduct has been updated, as have training and certification programs. These are important initial steps in the Company's commitment to establish a best-in-class governance benchmark. The implementation of an enhanced, robust and effective compliance program continues.
Historically, revenues generated from projects in the affected subsidiaries that are financed by the World Bank (and other multilateral development banks who are signatory to the cross-debarment agreement of April 9, 2010) represent approximately one percent of the Company's annual revenues.
According to the terms of settlement, certain of the Company's other affiliates continue to be eligible to bid on and be awarded World Bank Group-financed projects as long as they comply with all of the terms and conditions imposed upon them under the terms of the Agreement, including an obligation not to evade the sanction imposed.
SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. Founded in 1911, SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com
FORWARD LOOKING STATEMENTS
Statements made in this press release may be "forward-looking statements", which can be identified by the use of the conditional or forward-looking terminology such as "aim", "anticipates", "assumes", "believes", "estimates", "expects", "goal", "intend", "may", "plans", "projects", "should", "will", or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. All such forward-looking statements are made pursuant to the "safe-harbour" provisions of applicable Canadian securities laws. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company's current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Forward-looking statements made in this press release are based on a number of assumptions believed by the Company to be reasonable as at the date hereof. The assumptions are set out throughout the Company's 2012 Management's Discussion and Analysis. If these assumptions are inaccurate, the Company's actual results could differ materially from those expressed or implied in such forward-looking statements. In addition, important risk factors could cause the Company's assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in or implied by these forward-looking statements. For more information on risks and uncertainties, and assumptions that would cause the Company's actual results to differ from current expectations, please refer to the sections "Risks and Uncertainties", "How We Analyze and Report Our Results" and "Critical Accounting Judgments and Key Sources of Estimation Uncertainty" in the Company's 2012 Management's Discussion and Analysis.
The forward-looking statements herein reflect the Company's expectations as at the date of this press release and are subject to change after this date. The Company does not undertake any obligation to update publicly or to revise any such forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation.