05 April 2012
SNC-Lavalin has announced that a subsidiary has received formal notice that the rights of that subsidiary to bid on new World Bank projects have been temporarily suspended.
The ban follows an investigation related to bidding for the Padma Bridge project.
The decision follows an investigation launched by the World Bank last September. The subsidiary has the right to respond to the allegations outlined in the World Bank’s report, which is confidential, before a final decision is taken. SNC-Lavalin said that it intends to provide a comprehensive response to the allegations.
The allegations in the confidential report relate to the Padma Bridge project in Bangladesh, for which the company’s subsidiary had bid. The scope of the project, which was not awarded, was to act as the owner's engineer for the Bangladesh government in supervising the contractor responsible for the overall bridge construction project.
“We respect the World Bank’s decision to declare a temporary suspension on the subsidiary affected until this matter is concluded,” said the company’s interim CEO, Ian Bourne. “We should be clear, however, that all ongoing projects and new bids by other subsidiaries and divisions will continue as usual. We launched our own internal investigation when this matter was first brought to our attention and we will continue to cooperate fully with the World Bank on this matter.”
SNC-Lavalin said that the temporary suspension, which is effective immediately, is not a final decision but is an action taken by the World Bank to control interactions with the subsidiary concerned while the World Bank concludes its investigation and renders a final decision. The company added that it remains committed to maintaining ethical standards of business conduct.