SNC-Lavalin to pay $1.9 million in fourth Québec bid-rigging settlement

Fourth settlement brings total payments by colluding firms to more than $8.5 million

GATINEAU, QC, June 19, 2020 /CNW/ - Engineering firm SNC-Lavalin has been ordered to pay $1.9 million for rigging bids on municipal infrastructure contracts in the province of Québec as part of a settlement with the Public Prosecution Service of Canada.

The settlement, filed today with the Superior Court of Québec, ends the Competition Bureau's investigation of the company's role in a scheme in which several engineering firms conspired to rig bids for municipal contracts.

SNC-Lavalin participated in the scheme between 2003 and 2012, rigging bids on public infrastructure contracts in Montréal and in the Québec City area, the period varying for each municipality.

The settlement takes into account that SNC-Lavalin previously reimbursed the overpayments related to the bid-rigging through the Government of Québec's Voluntary Reimbursement Program, and that the individuals involved in the scheme no longer work for the firm.

As part of the settlement, the Court has also ordered SNC-Lavalin to maintain its corporate compliance program, which is designed to prevent further anticompetitive activity by its employees.

This is the fourth settlement with an engineering firm resulting from the Competition Bureau's ongoing investigation. Dessau, WSP Canada (formerly Genivar), and Norda Stelo (formerly Roche) were previously ordered to pay $1.9 million, $4 million and $750,000 respectively for their roles in the bid-rigging scheme.

The investigation has also resulted in guilty pleas by four former executives of engineering firms Cima+, Genivar and Dessau for bid-rigging on City of Gatineau infrastructure contracts. They received conditional prison sentences totalling five years and 11 months, and court-ordered community service totalling 260 hours.

The $1.9 million payment by SNC-Lavalin will be made to the Receiver General for Canada. 

Quotes

"Rigging bids on infrastructure contracts raises costs for municipalities and amounts to a theft of taxpayers' money. Our investigation is ongoing, and we will continue to pursue all those who plot to increase their profits through criminal bid-rigging schemes."

Matthew Boswell
Commissioner of Competition

Related Information

• Bid-rigging: Compete legally! (video)
• Toolbox for procurement officers: Detecting, preventing and reporting bid-rigging

Associated Links

• Roche (now Norda Stelo) to pay $750,000 in settlement for Quebec bid-rigging
• Genivar (now WSP Canada) to pay $4 million in Quebec bid-rigging settlement
• Dessau to pay $1.9 million in settlement over bid-rigging on public contracts in Quebec
• 19-month sentence for fourth accused in Gatineau bid-rigging case
• Two more engineering executives plead guilty in Gatineau bid-rigging case
• 18-month sentence for second engineering executive to plead guilty in Gatineau bid-rigging case
• 1-year sentence for engineering executive who rigged bids for public contracts in Gatineau
• Criminal charges laid against four individuals for bid-rigging in the engineering industry

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The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace. 

SOURCE Competition Bureau