Jacques Lamarre, then-CEO of SNC-Lavalin Group Inc., in Montreal in 2008. Mr. Lamarre was found guilty of seven of 14 allegations of misconduct made against him by Quebec’s professional order for engineers.John Morstad/The Globe and Mail
Former SNC-Lavalin Group chief executive Jacques Lamarre has been found guilty of seven of 14 allegations of misconduct made against him by Quebec’s professional order for engineers.
Last fall, the disciplinary council of L’Ordre des ingénieurs du Québec began several days of hearings to decide whether Mr. Lamarre infringed the organization’s code of ethics and professional duties in the early 2000s when he was CEO of SNC-Lavalin, now known as AtkinsRéalis Group Inc. ATRL-T
These hearings followed an investigation by the Ordre’s Office of the Syndic, which then launched a formal complaint against the former engineering executive.
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The Syndic made 14 separate allegations against Mr. Lamarre as part of its disciplinary complaint, which are related to previous legal cases involving the company. The allegations link broadly to SNC-Lavalin’s past business conduct as it sought contracts in Libya, as well as past political financing activities in Montreal.
Among the findings of guilt, L’Ordre concluded that SNC-Lavalin under Mr. Lamarre’s leadership directly or indirectly made payments amounting to about $2-million to the family of former Libyan leader Moammar Gadhafi, notably for expenses incurred by his son Saadi while he stayed in Canada.
Mr. Lamarre was found not guilty on allegations that he sanctioned the purchase of a luxury yacht for Saadi.
The former CEO last year denied the Syndic’s allegations. In a statement released Wednesday, Mr. Lamarre announced his resignation as a retired member of the Ordre des ingénieurs du Québec. He said he’s “disappointed” with the way the disciplinary investigation was conducted and called the ruling “deeply unfair” and “unreasonable.”
“The Syndic of the Order granted complete immunity to certain witnesses with conflicts of interest, while seeking to hold me responsible for actions for which those same witnesses were found guilty in other proceedings. ”
In early 2012, Swiss and Canadian police discovered questionable payments from SNC-Lavalin that ran through bank accounts in Switzerland and other countries. These payments were later found to be bribes to procure contracts for projects in Libya during Moammar Gadhafi’s rule, as SNC-Lavalin sought a share of contracts offered by his government.
In 2015, SNC-Lavalin and two affiliates were charged with fraud and violating Canada’s Corruption of Foreign Public Officials Act tied to its dealings in Libya. The company requested a settlement to the case, commonly known as a deferred prosecution agreement, but was denied.
SNC-Lavalin solidified an agreement with prosecutors in 2019 for the company’s construction division to plead guilty to a single charge of fraud while the corruption charge was dropped. The company agreed to pay a $280-million fine and received a three-year probation order.
In 2016, the company acknowledged that it engaged in a scheme that involved SNC-Lavalin employees being encouraged to donate to federal political parties and then be reimbursed through fake personal-expense claims, bonuses or benefits. Canadian law states that businesses cannot make financial contributions to political parties irrespective of candidates.
The company later entered into a compliance agreement with the Commissioner of Canada Elections. SNC-Lavalin also admitted that it used a similar strategy for donations to Quebec political parties.
No penalties for Mr. Lamarre were announced by L’Ordre, though it said it will set a date for sanctions. He could be revoked of his status as a professional engineer, or face fines.
“I am proud of my career and the role I played as an executive at SNC-Lavalin,” Mr. Lamarre said in his statement. “But given the ongoing conflict with the Order and the way I have been treated, I have no choice but to resign.”