MONTREAL,
April 17, 2013 /CNW Telbec/ -
SNC-Lavalin Group Inc. (TSX: SNC) announces that a settlement has
been reached with the World Bank Group in connection with the
previously announced investigations. While the specific terms of
the settlement are confidential, it includes the suspension of the
right to bid on and to be awarded World Bank Group-financed
projects by SNC-Lavalin Inc., a subsidiary of the Company, and its
controlled affiliates for a period of 10 years. The suspension
could be lifted after eight years, if the terms and conditions of
the settlement agreement are complied with fully. The settlement
also requires that the Company cooperate with the World Bank on
various compliance matters in the future. The settlement does not
include a financial penalty.
The Company launched an internal investigation
when this matter was first brought to its attention and has worked
closely with the World Bank throughout the settlement process.
"The Company's decision to settle signals our
determination as we go forward to set standards for ethics in
business conduct and for good governance that are beyond reproach,"
said Robert G. Card, President and
CEO of SNC-Lavalin Group Inc. "The Company has already taken,
and will continue to take, measures to ensure rigorous compliance
and control procedures are in place."
The Company recently hired a world-renowned
leader in corporate governance as Chief Compliance Officer and is
working closely with recognized independent experts in compliance,
anti-corruption and governance. The Code of Ethics and
Business Conduct has been updated, as have training and
certification programs. These are important initial steps in the
Company's commitment to establish a best-in-class governance
benchmark. The implementation of an enhanced, robust and
effective compliance program continues.
Historically, revenues generated from projects
in the affected subsidiaries that are financed by the World Bank
(and other multilateral development banks who are signatory to the
cross-debarment agreement of April 9,
2010) represent approximately one percent of the Company's
annual revenues.
According to the terms of settlement, certain of
the Company's other affiliates continue to be eligible to bid on
and be awarded World Bank Group-financed projects as long as they
comply with all of the terms and conditions imposed upon them under
the terms of the Agreement, including an obligation not to evade
the sanction imposed.
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. Founded in 1911, 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
FORWARD LOOKING STATEMENTS
Statements made in this press release may be "forward-looking
statements", which can be identified by the use of the conditional
or forward-looking terminology such as "aim", "anticipates",
"assumes", "believes", "estimates", "expects", "goal", "intend",
"may", "plans", "projects", "should", "will", or the negative
thereof or other variations thereon. Forward-looking statements
also include any other statements that do not refer to historical
facts. All such forward-looking statements are made pursuant to the
"safe-harbour" provisions of applicable Canadian securities laws.
The Company cautions that, by their nature, forward-looking
statements involve risks and uncertainties, and that its actual
actions and/or results could differ materially from those expressed
or implied in such forward-looking statements, or could affect the
extent to which a particular projection materializes.
Forward-looking statements are presented for the purpose of
assisting investors and others in understanding certain key
elements of the Company's current objectives, strategic priorities,
expectations and plans, and in obtaining a better understanding of
the Company's business and anticipated operating environment.
Readers are cautioned that such information may not be
appropriate for other purposes.
Forward-looking statements made in this press release are
based on a number of assumptions believed by the Company to be
reasonable as at the date hereof. The assumptions are set out
throughout the Company's 2012 Management's Discussion and
Analysis. If these assumptions are inaccurate, the Company's
actual results could differ materially from those expressed or
implied in such forward-looking statements. In addition,
important risk factors could cause the Company's assumptions and
estimates to be inaccurate and actual results or events to differ
materially from those expressed in or implied by these
forward-looking statements. For more information on risks and
uncertainties, and assumptions that would cause the Company's
actual results to differ from current expectations, please refer to
the sections "Risks and Uncertainties", "How We Analyze and Report
Our Results" and "Critical Accounting Judgments and Key Sources of
Estimation Uncertainty" in the Company's 2012 Management's
Discussion and Analysis.
The forward-looking statements herein reflect the Company's
expectations as at the date of this press release and are subject
to change after this date. The Company does not undertake any
obligation to update publicly or to revise any such forward-looking
statements whether as a result of new information, future events or
otherwise, unless required by applicable legislation or
regulation.
SOURCE SNC-LAVALIN