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SNC-Lavalin's Decade of Monitoring Ends, Scandal's Legacy Lingers

  //business-finance.news-articles.net/content/202 .. of-monitoring-ends-scandal-s-legacy-lingers.html
  Published in Business and Finance on Wednesday, January 7th 2026 at 14:07 GMT by The Globe and Mail
      Locale: Quebec, CANADA

SNC-Lavalin's Decade of Monitoring Ends, But Legacy of Scandal Lingers

For a decade, SNC-Lavalin, once a Canadian engineering and construction giant, has been under strict court-ordered compliance monitoring following a damning scandal involving bribery and corruption. As of February 29, 2024, that monitoring period officially ended, marking a significant, though not entirely celebratory, turning point for the company. However, the conclusion of the oversight doesn't erase the profound damage inflicted on SNC-Lavalin's reputation, its financial standing, and its role in the Canadian political landscape. This article summarizes the history of the scandal, the terms of the compliance program, its impact, and the company’s current state.

The Roots of the Scandal: Bribery in Libya and Beyond

The trouble began surfacing in 2011, with allegations of SNC-Lavalin paying bribes to secure contracts with Muammar Gaddafi’s regime in Libya. Investigations revealed a pattern of unethical behavior that wasn't limited to Libya, extending to projects in other countries. The company admitted to using shell companies to funnel millions of dollars in improper payments to win contracts and influence officials. These payments weren’t just small gestures; they were systematic, substantial, and intended to circumvent ethical business practices.

The investigation by the Royal Canadian Mounted Police (RCMP) uncovered a network of illicit activities, leading to charges against several SNC-Lavalin executives. Crucially, the scandal coincided with a period of political turmoil in Libya, making investigation and prosecution particularly complex.

In 2015, SNC-Lavalin was formally charged with corruption under the Corruption of Foreign Public Officials Act. Rather than fight a protracted legal battle, the company opted for a remediation agreement with the Public Prosecution Service of Canada (PPSC) in 2019. This agreement, a landmark case of its kind, allowed SNC-Lavalin to avoid a criminal trial, but came with significant conditions.

The Remediation Agreement & The Compliance Monitor

The remediation agreement required SNC-Lavalin to pay a $280-million penalty, restructure its ethics and compliance programs, and crucially, submit to a decade-long independent monitoring program. Frank Iacobucci, a former Supreme Court of Canada judge, was appointed as the independent monitor. His mandate was comprehensive: to oversee SNC-Lavalin’s internal controls, investigate any further misconduct, and report regularly to the PPSC.

The monitoring wasn't simply a passive observation. Iacobucci and his team had full access to company records, interviewed employees at all levels, and could demand changes to policies and procedures. The compliance program focused on strengthening ethical leadership, implementing a robust whistleblower system, and enhancing due diligence processes for international projects. The cost of this monitoring was substantial, estimated to be over $100 million.

The Political Firestorm: The Trudeau Controversy

The SNC-Lavalin scandal quickly became a major political issue in Canada, primarily due to allegations of improper political interference. Then-Prime Minister Justin Trudeau and members of his cabinet were accused of attempting to pressure then-Attorney General Jody Wilson-Raybould to intervene in the prosecution. Wilson-Raybould alleged she faced relentless pressure to direct the PPSC to offer SNC-Lavalin a deferred prosecution agreement, avoiding a trial altogether.

This controversy sparked a fierce debate about the separation of powers, political ethics, and the integrity of the justice system. A report by the Commissioner of the Ethics and Public Integrity of Canada, Mario Dion, confirmed that Trudeau’s actions were inappropriate and violated conflict of interest rules. Several key figures resigned or were demoted, significantly damaging Trudeau's political standing. The scandal contributed to the Liberal party losing its majority in the 2019 federal election.

SNC-Lavalin Today: A Transformed, But Shrunken, Company

With the compliance monitoring concluded, SNC-Lavalin claims to have fundamentally transformed its corporate culture. The company has publicly stated that it has implemented the necessary changes to prevent future wrongdoing. However, the past decade has been incredibly damaging financially.

SNC-Lavalin has significantly scaled back its international operations, divesting assets and restructuring its business to focus on core areas like infrastructure and sustainable solutions. The company’s share price remains significantly lower than pre-scandal levels. In 2023, the company rebranded as EY (Ernst & Young) SNC-Lavalin, after selling a majority stake to the professional services firm, signaling a further shift away from its traditional construction and engineering focus. This sale was partly motivated by a desire to distance itself from the past scandal and secure a more stable future.

While the end of the compliance monitoring is a legal milestone, the shadow of the scandal continues to loom. The company is still rebuilding trust with stakeholders, including investors, employees, and the public. The legacy of bribery and corruption will undoubtedly remain a cautionary tale for Canadian businesses operating internationally. The case underscored the importance of robust ethics programs, effective oversight, and the unwavering independence of the justice system.

Sources:

• Globe and Mail Article: [ https://www.theglobeandmail.com/business/article-snc-lavalin-jacques-lamarre-penalty-licence/ ]
• Ethics Commissioner Report: [ https://www.ethics.gc.ca/doc/rep-com-dpe-20191213-eng.pdf ]
• SNC-Lavalin Remediation Agreement: [ https://www.pPSC-SPP.gc.ca/en/news/news-releases/2019/02/28/snc-lavalin-group-inc-enters-remediation-agreement ]
• CBC News: [ https://www.cbc.ca/news/politics/snc-lavalin-monitoring-ends-1.7132378 ] (for current state and sale to EY)