Topic > SNC-Lavalin Scandal - 1759

Brief Summary of the SNC-Lavalin Scandal - $1.5 Million in BribesAn investigation reveals that $1.5 million believed to be bribes ended up in a Swiss bank under the ex's account head of the Federal Bridge Corporation, Michael Fournier, according to Radio-Canada. This occurred in 2000, soon after SNC-Lavalin was awarded the $125 million contract to renovate the historic Jacques Cartier Bridge in Montreal (Yauch, 2014). Two years after the agreement, after the start of construction of the bridge, a Swiss builder bank account owned by the former head of the Federal Bridge Corporation, Michael Fournier began to receive frequent payments from Promotag, which was a commercial agency with a close relationship with SNC-Lavalin, according to Radio-Canada (Hopper, 2014). The Swiss account was based in Zurich; his name was "Zorro". The account received an initial injection of $87,000 from Promotag in January 2002, which was followed by eleven additional payments that occasionally had a maximum value of $270,000. These payments concluded in 2004, at which point the bill reached approximately $1.5 million (Hopper, 2014). Enquête, a Radio-Canada investigative program visited Fournier's home 2 months ago regarding alleged kickbacks he was receiving from Promotag, Fournier had denied the allegations regarding operational activities emerging from the Swiss bank account and also denied ever having received money neither from SNC-Lavalin nor from Promotag. However, a month earlier, Fournier had telephoned Enquête and explained that he had opened a Swiss bank account for a relative of their family for their use, but that he had no information on the account's operations. The investigation is now in the hands of the RCMP, where further investigations will be carried out regarding… half of the document… 2. Hire from outside sources, as you are at no risk and do not need to consider a conflict of interest with someone who works in-house. This provides the company with a clean slate of executives who have their morals intact from an ethical standpoint. Emphasis on the development and implementation of training initiatives to promote the adoption of ethical behavior among new and young hires. Therefore highlighting the importance if this code were to be violated, thus addressing the future possibility of a similar scandal.4. Instead of offering amnesty to whistleblowers for a limited period, we need to implement this rule permanently and make it known that suspicious behavior should be reported if noticed without any consequences. Permanent implementation will keep all employees honest with each other and the company, thus minimizing the risk of corruption.