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

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

Parksville city hall sign. (Mandy Moraes photo)
Parksville city council approves 2021 workplan

Public input still sought on municipal budget and financial plan

Colin Springford expressed his thanks following a birthday truck parade that was held for him on his 75th birthday on April 10, 2020. (Submitted photo)
Longtime Nanoose Bay farmer Colin Springford dies at age 75

‘He will be deeply missed, always loved and never forgotten’

Nicole Shaw, left, and Sekoya Dawn next to their respective works at the Qualicum Arts Supply and Gallery in Qualicum Beach. The art will be on display until the end of February. (Mandy Moraes photo)
Acrylic artists display work in Qualicum Beach

Nicole Shaw and Sekoya Dawn both featured at Qualicum Arts Supply and Gallery

Gord John stands during question period in Ottawa in Sept. 2020. (PHOTO COURTESY CHRISTIAN DIOTTE, HOUSE OF COMMONS PHOTO SERVICES)
2020: A Year in Review with Courtenay-Alberni MP Gord Johns

NDP MP wants to ‘build back better’ in 2021

Parksville Fire Department crews attended the scene of a house fire on Monday, Jan. 18, 2021 at the end of Foster Place in Parksville. No injuries were reported. (Mandy Moraes photo)
Fire crews called to battle house fire in Parksville

No injuries reported, kitty rescued

Maj.-Gen. Dany Fortin, vice-president of logistics and operations at the Public Health Agency of Canada, speaks at a news conference on the COVID-19 pandemic in Ottawa, on Friday, Jan. 15, 2021. THE CANADIAN PRESS/Justin Tang
B.C. records 500 new COVID-19 cases Wednesday, 14 deaths

Outbreak at Surrey Pretrial jail, two more in health care

A suspect has been arrested in connection with fires at Drinkwater Elementary (pictured) and École Mount Prevost. (Kevin Rothbauer/Citizen)
Arson suspect arrested after fires at Cowichan Valley schools

Drinkwater Elementary and Mount Prevost schools hit within a week

A woman writes a message on a memorial mural wall by street artist James “Smokey Devil” Hardy during a memorial to remember victims of illicit drug overdose deaths on International Overdose Awareness Day, in the Downtown Eastside of Vancouver, on Monday, August 31, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. paramedics respond to record-breaking number of overdose calls in 2020

On the front lines, COVID-19 has not only led to more calls, but increased the complexity

Nanaimo RCMP are seeking the public’s help after a man allegedly assaulted a clerk at James General Store on Victoria Road on Jan. 18. (Submitted photo)
Suspect screams at customer then assaults store clerk in Nanaimo

RCMP asking for information about Jan. 18 incident at James General Store

Chartwell Malaspina Care Residence in Nanaimo. (News Bulletin file photo)
Two Nanaimo care-home residents have died during COVID-19 outbreak

Death reported Monday was the second related to Chartwell Malaspina outbreak, says Island Health

Rod Bitten of Union Bay won $500,000 in the Lotto Max draw on Jan. 15. Photo supplied
Vancouver Island electrician gets shocking surprise with $500K Extra win

Rod Bitten has been hard at work with home renovations, which is… Continue reading

Eighteen-year-old Aidan Webber died in a marine accident in 2019. He was a Canadian Junior BMX champion from Nanaimo. (Submitted)
Inadequate safety training a factor in teen BMX star’s workplace death in 2019

Aidan Webber was crushed by a barge at a fish farm near Port Hardy

Oyster River Fire Rescue members were called out to a suspicious fire in Black Creek. Two vehicles parked at a private residence were destroyed by fire. Photo courtesy Oyster River Fire Rescue
Suspicious fire destroys two vehicles at Vancouver Island residence

Oyster River Fire Rescue personnel were dispatched to a fire at a… Continue reading

Members of the BC RCMP Explosive Disposal Unit (EDU) is on route to Drummond Park opposite of Fulford Habour on Saltspring Island after the discovery of a suspicious cylindrical-shaped device. (Google/Screencap)
Bomb disposal unit en route to Salt Spring Island after suspicious device found in park

Police say a resident discovered the device Wednesday morning in Drummond Park opposite BC Ferries terminal

Most Read