Engineering and construction company SNC-Lavalin yesterday announced that it has reached a $1.5 million settlement with the African Development Bank Group (AfDB) to resolve sanctionable practices by SNC-Lavalin International, a subsidiary of the company, in connection with certain AfDB-financed contracts in Mozambique and Uganda.

Under the agreement, SNC-Lavalin International will not be debarred, provided SNC-Lavalin meets certain conditions for a period of two years and 10 months. The agreement, which relates to alleged actions of former employees in connection with contracts awarded in 2008 and 2010. No other subsidiary of SNC-Lavalin will be sanctioned.

Under the leadership of the SNC-Lavalin’s board, the company said it has made “significant changes” to the company over the past three years, including reinforcing its ethics and compliance program “with huge investments in time and money.”

Enhancements to its ethics and compliance program include:

Creating the position of chief compliance officer, who reports to the board, and hiring leaders in compliance;

Appointing compliance officers in all of the company’s business sectors;

Creating a dedicated ethics and compliance team;

Further reinforcing internal controls and procedures;

Further reinforcing its Code of Ethics and Ethics and Compliance Hotline;

Producing a dedicated Anti-Corruption Manual;

Offering annual compliance training to all employees, with a special focus on those working in strategic roles;

Developing and distributing a world-class Business Partners Policy to employees; and

Using an independent third party to screen candidates for senior management positions.

SNC-Lavalin said that all remaining details and specifics regarding the settlement agreement are to remain confidential, as stipulated by the agreement.

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