SNC-Lavalin now banned from Canadian foreign-aid projects

3 May 2013

Scandal-hit Canadian engineering firm SNC-Lavalin has been told it can no longer bid for Canadian foreign-aid projects following its debarment from World Bank schemes over allegations of bribing officials in Bangladesh.

The Canadian International Development Agency (CIDA) announced last week that firms sanctioned by the World Bank for engaging in corrupt or fraudulent practices will be ineligible to bid on CIDA-funded projects.

SNC-Lavalin Inc. and many of its affiliates agreed to a 10-year ban from bidding on World Bank projects following an investigation into allegations of bribery involving a $50-million bridge-building contract in Bangladesh.

SNC-Lavalin fallout continues. (Credit: Getty)

The World Bank investigation was separate from an ongoing RCMP probe of the company’s overseas activities, which involve alleged kickbacks to foreign officials such as Libyan dictator Moammar Gadhafi’s son.

SNC-Lavalin has said the CIDA ban will have minimal financial impact. It has only two active projects in Indonesia and Vietnam with CIDA, totalling nearly $35 million, and says it hasn’t bid on new CIDA work since 2011.

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