MONTREAL - The former chief executive of Canadian engineering and construction giant SNC-Lavalin has been arrested and charged with fraud, authorities said yesterday. Quebec's anti-corruption squad said Pierre Duhaime faces charges of fraud, conspiracy to commit fraud and use of false documents. Duhaime was arrested at his home early yesterday by anti-corruption squad agents
The Montreal-based company, one of the world's largest engineering and construction companies, said earlier this year that it informed police about the results of an internal investigation into $56 million worth of payments that resulted in the resignation of its CEO. Duhaime resigned after a probe revealed he signed off on payments to undisclosed agents, breaching the company's code of ethics.
SNC-Lavalin they were informed of the arrest but said they are not aware of the specifics of any of the charges. "We have voluntarily turned over information that we have to local and other authorities for them to take any actions that they may consider appropriate," the company said in a statement. "We are unequivocal that no unethical behavior or illegal acts must ever be tolerated.We believe that anyone found to have committed any wrongdoing should be brought to justice."
International proceedings are also underway against former SNC-Lavalin senior executive Riadh Ben Aissa, who was already arrested in Switzerland on fraud, money laundering and corruption charges.
The charges against Ben Aissa, SNC's former head of construction, involve corrupting a public official, and fraud and money laundering tied to his dealings in North Africa. SNC's initial review led to it finding the $56 million of payments to unidentified agents, but the company has insisted that none of the funds were directed to Libya.
Shares of SNC-Lavalin fell 2.3 percent in trading on the Toronto Stock Exchange on Wednesday afternoon.
AP