The company finds itself at the centre of a political firestorm.
OTTAWA — SNC-Lavalin, facing a 10-year ban from federal business over corruption charges, urged the Liberal government in 2017 to water down the penalty scheme for corporate misconduct to the point a guilty company could completely dodge a ban on receiving public contracts.
A forthcoming proposal to update the integrity regime — which Public Services Minister Carla Qualtrough has said will be finalized in about a month — might have major consequences for SNC-Lavalin. It could help the embattled firm avoid a lengthy, economically punishing ban on federal contracts. Wilson-Raybould recently told the House of Commons justice committee she came under relentless pressure from the Prime Minister's Office and other federal officials to ensure the company was invited to negotiate a remediation agreement, a sort of plea bargain that could allow it to continue doing business with the government.Prime Minister Justin Trudeau and his former principal secretary, Gerald Butts, have disputed the notion any inappropriate arm-twisting of Wilson-Raybould took place.
However, the company could still escape severe punishment through an update to the integrity regime, which is aimed at fostering ethical business practices by shunning companies guilty of offences such as bid-rigging, bribery, fraud and money-laundering. The 2017 consultations canvassed opinions about the overall federal integrity regime, including input on the sanctions that can prohibit a company from receiving government contracts — a process known as debarment.
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