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Corruption Case That Tarnished Trudeau Ends With Company’s Guilty Plea | Corruption Case That Tarnished Trudeau Ends With Company’s Guilty Plea |
(32 minutes later) | |
OTTAWA — The company whose corruption case nearly derailed Prime Minister Justin Trudeau’s campaign for re-election, bruising his image as a feminist and defender of “sunny ways,” pleaded guilty on Wednesday to a fraud charge of bribing Libyan officials. | OTTAWA — The company whose corruption case nearly derailed Prime Minister Justin Trudeau’s campaign for re-election, bruising his image as a feminist and defender of “sunny ways,” pleaded guilty on Wednesday to a fraud charge of bribing Libyan officials. |
The construction division of SNC-Lavalin, a Montreal-based engineering firm, admitted to paying 127 million Canadian dollars in bribes to Libyan officials to secure contracts in that country. About a third of that money went to the son of Muammar el-Qaddafi, the dictator who ruled Libya at the time. | The construction division of SNC-Lavalin, a Montreal-based engineering firm, admitted to paying 127 million Canadian dollars in bribes to Libyan officials to secure contracts in that country. About a third of that money went to the son of Muammar el-Qaddafi, the dictator who ruled Libya at the time. |
The company was fined 280 million Canadian dollars, or about $213 million, to be paid out over five years. | The company was fined 280 million Canadian dollars, or about $213 million, to be paid out over five years. |
The guilty plea resolves a case that upended Canadian politics this year, threatening Mr. Trudeau’s re-election hopes and tarnishing his reputation. | The guilty plea resolves a case that upended Canadian politics this year, threatening Mr. Trudeau’s re-election hopes and tarnishing his reputation. |
It began with accusations by Jody Wilson-Raybould, an Indigenous leader who was then the justice minister and attorney general, that Mr. Trudeau and his mostly male aides had ganged up on her to get her to settle the criminal case against the company with a civil penalty. | It began with accusations by Jody Wilson-Raybould, an Indigenous leader who was then the justice minister and attorney general, that Mr. Trudeau and his mostly male aides had ganged up on her to get her to settle the criminal case against the company with a civil penalty. |
The federal ethics commissioner ultimately ruled that Mr. Trudeau attempted “to circumvent, undermine and ultimately attempt to discredit” Ms. Wilson-Raybould by trying to sway her on how to handle the case. | The federal ethics commissioner ultimately ruled that Mr. Trudeau attempted “to circumvent, undermine and ultimately attempt to discredit” Ms. Wilson-Raybould by trying to sway her on how to handle the case. |
Mr. Trudeau said a criminal conviction would imperil jobs in Quebec because it would have barred the company from bidding on government contracts. | Mr. Trudeau said a criminal conviction would imperil jobs in Quebec because it would have barred the company from bidding on government contracts. |
But Wednesday’s settlement would not affect SNC-Lavalin’s ability to pursue government work because the plea involves only the construction division, the company said in a statement. | But Wednesday’s settlement would not affect SNC-Lavalin’s ability to pursue government work because the plea involves only the construction division, the company said in a statement. |
Mr. Trudeau’s office and the office of his new attorney general, David Lametti, declined to comment on the company’s assertion, as did prosecutors. | Mr. Trudeau’s office and the office of his new attorney general, David Lametti, declined to comment on the company’s assertion, as did prosecutors. |
Charges against the parent company and its international unit, which were part of the original case filed in 2015, were withdrawn as part of the guilty plea, prosecutors said. | Charges against the parent company and its international unit, which were part of the original case filed in 2015, were withdrawn as part of the guilty plea, prosecutors said. |
The case, along with revelations that Mr. Trudeau wore black and brownface as a student and teacher, badly battered Mr. Trudeau’s image. Since his election in 2015, he has positioned himself as a leader who took a new, open approach to politics. And he has trumpeted his credentials as feminist, who appointed a gender-balanced cabinet, and as a defender of Indigenous rights. | The case, along with revelations that Mr. Trudeau wore black and brownface as a student and teacher, badly battered Mr. Trudeau’s image. Since his election in 2015, he has positioned himself as a leader who took a new, open approach to politics. And he has trumpeted his credentials as feminist, who appointed a gender-balanced cabinet, and as a defender of Indigenous rights. |
But after Ms. Wilson-Raybould’s accusations, his political opponents tried to change the narrative, saying he wasn’t really who he seemed to be. | But after Ms. Wilson-Raybould’s accusations, his political opponents tried to change the narrative, saying he wasn’t really who he seemed to be. |
It didn’t help that Ms. Wilson-Raybould resigned from the cabinet over the case, as did Jane Philpott, the treasury board president, who quit in solidarity. Mr. Trudeau has rejected the assertion that he acted improperly, and in August, after the ethics ruling was announced, said, “the way this happened shouldn’t have happened.” | It didn’t help that Ms. Wilson-Raybould resigned from the cabinet over the case, as did Jane Philpott, the treasury board president, who quit in solidarity. Mr. Trudeau has rejected the assertion that he acted improperly, and in August, after the ethics ruling was announced, said, “the way this happened shouldn’t have happened.” |
Mr. Trudeau won re-election in October, but without a voting majority for his Liberal Party in the House of Commons, which analysts attributed to the fallout from the SNC-Lavalin case. | Mr. Trudeau won re-election in October, but without a voting majority for his Liberal Party in the House of Commons, which analysts attributed to the fallout from the SNC-Lavalin case. |
“This put this to bed as a political issue,” said Andrew McDougall, a political scientist at the University of Toronto. “I don’t think many Canadians will be surprised by this outcome.” | “This put this to bed as a political issue,” said Andrew McDougall, a political scientist at the University of Toronto. “I don’t think many Canadians will be surprised by this outcome.” |
The case against the company had remained in limbo since Ms. Wilson-Raybould stepped down. Apparently unwilling to offend voters in Quebec who were concerned about possible job losses, but also unwilling to be seen siding with the company, Mr. Trudeau left it in the hands of his new attorney general, Mr. Lametti. | The case against the company had remained in limbo since Ms. Wilson-Raybould stepped down. Apparently unwilling to offend voters in Quebec who were concerned about possible job losses, but also unwilling to be seen siding with the company, Mr. Trudeau left it in the hands of his new attorney general, Mr. Lametti. |
In a statement, Mr. Lametti said that the arrangement with the company was “made independently” by the Public Prosecution Service of Canada which, by tradition, generally operates without direction from political office holders. Its officials, like Ms. Wilson-Raybould, had opposed a civil settlement in the case. | In a statement, Mr. Lametti said that the arrangement with the company was “made independently” by the Public Prosecution Service of Canada which, by tradition, generally operates without direction from political office holders. Its officials, like Ms. Wilson-Raybould, had opposed a civil settlement in the case. |
One former SNC-Lavalin executive, Sami Bebawi, was found guilty by a jury in Quebec last weekend, on five charges including fraud, corruption of foreign officials and money laundering. Evidence in the trial showed that Mr. Bebawi, 73, bribed government officials in Libya to obtain contracts and pocketed millions of dollars. | |
SNC-Lavalin did not respond to questions about why it pushed for a civil settlement when it now appears that there was a way to accept a criminal charge without jeopardizing the company. | SNC-Lavalin did not respond to questions about why it pushed for a civil settlement when it now appears that there was a way to accept a criminal charge without jeopardizing the company. |
Jennifer Quaid, a law professor at the University of Ottawa who has followed the case closely, said the company likely wanted to be treated like its British and American competitors have been in similar circumstances. | Jennifer Quaid, a law professor at the University of Ottawa who has followed the case closely, said the company likely wanted to be treated like its British and American competitors have been in similar circumstances. |
She said it was not apparent how prosecutors determined the amount of the fine. There were also few publicly available details about what compliance changes, ethical or legal, the company must undertake during a three-year period of probation. | She said it was not apparent how prosecutors determined the amount of the fine. There were also few publicly available details about what compliance changes, ethical or legal, the company must undertake during a three-year period of probation. |
“From the company’s perspective, they got what they wanted,” Professor Quaid said. “I’m not so sure about how it serves the public’s interest.” | “From the company’s perspective, they got what they wanted,” Professor Quaid said. “I’m not so sure about how it serves the public’s interest.” |