The ex-CEO of SNC-Lavalin has strongly refuted claims by an unidentified company insider, asserting that government-funded loans from Canada were never utilized for bribery during his tenure. Jacques Lamarre, in an interview with CBC News, criticized those making accusations behind closed doors as “cowardly.”
The insider, who chose to remain anonymous due to job security concerns, alleged to CBC News that it was widely known within the company that funds meant for bribes abroad were concealed in budgets as “technical fees” in applications for financial support from Export Development Canada (EDC). EDC, a Crown agency offering financial support and insurance to Canadian businesses operating internationally, has extended loans totaling up to $4.7 billion to SNC-Lavalin over the last 25 years.
In response to the insider’s claims, EDC has engaged external legal counsel to scrutinize at least one past deal with SNC-Lavalin. Lamarre, who led SNC-Lavalin from the mid-1990s until 2009, defended the use of “technical fees” as a means to employ local staff in foreign territories where establishing operations was challenging. He emphasized that contractors were obligated to sign agreements prohibiting the use of funds for illegal activities such as bribery.
EDC has expressed interest in meeting with the insider regarding the allegations of overlooking SNC-Lavalin’s misuse of “technical fees.” The agency is currently reviewing a project in Angola flagged by the informant for involving illicit payments. EDC provided political risk insurance for a $250 million contract to repair the Matala hydroelectric dam.
Although EDC has not directly addressed queries posed by CBC News on this issue, SNC-Lavalin declined to provide comments. Lamarre acknowledged that foreign payments were recorded as Canadian expenses, stating that EDC was fully aware of the financial details of SNC-Lavalin.
SNC-Lavalin has been embroiled in several bribery scandals domestically and internationally in recent years, including corruption allegations related to EDC-supported projects in India, Angola, and Algeria. The company is currently facing legal action in Canada over alleged misconduct in Libya, with the possibility of a 10-year ban on federal contracts if convicted. Lamarre maintained that any instances of bribery were isolated incidents involving rogue employees and that the company has always been stringent in its ethical standards.
The company has been advocating for a deferred prosecution agreement, a proposal opposed by former Attorney General Jody Wilson-Raybould. Prime Minister Justin Trudeau replaced her with a new Attorney General in January, who retains the authority to intervene and potentially negotiate a settlement that would not restrict SNC-Lavalin from federal projects.