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SNC-Lavalin CEO Leaves Amidst Probe

Top exec at one of Canada’s largest construction firms steps down during internal investigation over a missing $56-million payment. A mystery surrounding a $56 million payment has toppled SNC-Lavalin’s top executive.   CEO Pierre Duhaime resigned Monday after an internal investigation revealed he authorized the large payment to undisclosed agents over the protests of the company’s CFO. The lack of documentation on the payment violated SNC’s code of ethics.  

By Lindsey Peacock /

SNC-Lavalin construction | BCBusiness
SNC-Lavalin, one of Canada’s largest construction and engineering firms, lost its CEO Monday in the midst of a missing money scandal.

Top exec at one of Canada’s largest construction firms steps down during internal investigation over a missing $56-million payment.

A mystery surrounding a $56 million payment has toppled SNC-Lavalin’s top executive.
 
CEO Pierre Duhaime resigned Monday after an internal investigation revealed he authorized the large payment to undisclosed agents over the protests of the company’s CFO. The lack of documentation on the payment violated SNC’s code of ethics.
 
Because the internal audit raised many more questions than it answered, the company has now called in the RCMP to take over the investigation. The New York Times reports the police will investigate both the whereabouts of the missing payment as well as allegations that former SNC employees plotted to smuggle Muammar el-Qaddafi’s son from Libya. The company has operations and several major projects in Libya.
 
At the moment, the company can’t confirm where the missing cash ended up, but it insists the money didn’t go to Libya. Whether the payment is lining Libyan pockets or not, the scandal has already done some damage. SNC’s stock reacted with a five per cent dive on Monday. And while share prices are faring better than expected, this case of corporate scandal is far from closed.