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

VIDEO: Yarrow’s Corwin Drew in final four of Vancouver Whitecaps Academy skills competition

The soccer star is looking for community support to get him through the next round of online voting

Chilliwack students make slow return to classes

Less than 40 per cent of allowable density across the district on opening day

Chilliwack youth planning solidarity march against racism

Organizer hoping to ‘create a type of a energy in the city that we will not be silent about racism’

Solidarity demonstration planned for Abbotsford on Friday

People gathering to protest police brutality and systemic racism in downtown Abbotsford

Downtown Chilliwack restaurant closes its doors due to COVID-19

‘We are looking forward to seeing you all again one day,’ reads the message to loyal customers

About 30% of B.C. students return to schools as in-class teaching restarts amid pandemic

Education minister noted that in-class instruction remains optional

Facing changes together: Your community, your journalists

New platform allows readers to make a one-time or ongoing donation to support local journalism

Be cautious expanding COVID-19 bubble, Dr. Bonnie Henry tells B.C.

Senior homes stay off-limits as schools, businesses reopen

RCMP, coroner investigate murder-suicide on Salt Spring Island

Two dead, police say there is no risk to the public

Trudeau avoids questions about anti-racism protesters dispersed for Trump photo-op

Prime minister says racism is an issue Canadians must tackle at home, too

NDP getting COVID-19 wage subsidy ‘indirectly,’ B.C. Liberal leader says

B.C. NDP says Andrew Wilkinson is wrong about federal link

Parent, superintendent, trustee report smooth return to classrooms in B.C.

The biggest challenge is convincing families that it’s safe, some say

Two more COVID-19 cases reported by Langley long term care facility

One resident, one staffer have tested positive for the coronavirus

Most Read