MONTREAL, April 2, 2012 /PRNewswire/ - SNC-Lavalin (TSX:
SNC) announces that, following an investigation launched last
September, one of its subsidiaries received formal notice from the
World Bank that the rights of that subsidiary to bid on new World
Bank projects have been temporarily suspended. The subsidiary named
has the right, according to World Bank regulations, to respond to
the allegations outlined in the World Bank's report, which is
confidential, before a final decision is taken. SNC-Lavalin intends
to provide a comprehensive response to the allegations.
"We respect the World Bank's decision to declare a temporary
suspension on the subsidiary affected until this matter is
concluded. We should be clear, however, that all ongoing projects
and new bids by other subsidiaries and divisions will continue as
usual," said the company's interim CEO, Ian
Bourne. "We launched our own internal investigation when
this matter was first brought to our attention and we will continue
to cooperate fully with the World Bank on this matter."
The allegations in the confidential report relate to the Padma
Bridge project in Bangladesh, for
which the Company's subsidiary had bid. The scope of the project,
which was not awarded, was to act as the Owner's Engineer for the
Bangladesh government in
supervising the Contractor responsible for the overall bridge
construction project.
The temporary suspension, which is effective immediately, is not
a final decision but is an action taken by the World Bank to
control interactions with the subsidiary concerned while the World
Bank concludes its investigation and renders a final decision.
SNC-Lavalin remains committed to maintaining ethical standards
of business conduct.
SNC-Lavalin is one of the leading engineering and construction
groups in the world and a major player in the ownership of
infrastructure, and in the provision of operations and maintenance
services. SNC-Lavalin has offices across Canada and in over 40 other countries around
the world, and is currently working in some 100 countries.
www.snclavalin.com.
SOURCE SNC-LAVALIN