S. Law

source: Le journal de Montreal

author: Loïc Tassé

translation: doxa-louise

SNC-Lavalin: the government complicit in corruption

One of the most short-sighted laws in effect in Canada is that which

forbids Canadian enterprises from using corruption to obtain contracts abroad. Such a law also exists in other democratic countries. But it is often gleefully ignored.

The problem with this law is that the great majority of countries in this world operate on corruption. If one is to believe the corruption ratings of Transparency International, only some fifty countries out of 180 deserve a rating over 50%. Among utterly corrupt countries, under the 50% bar, we find Italy, African countries, Cuba, Romania, India, China, Turkey, Pakistan and so forth.

Practicing corruption without getting caught

What should one think of international enterprises dealing with these countries? Are they white as snow? Of course not. Many international students have often explained to me that Masters level classes in Business could well bear the title: How to practice corruption without getting caught.

The situation is ridiculous to the point where the international enterprises of the planet’s greatest economic power, China, won’t hesitate to use corruption to obtain contracts in foreign lands.

Libya is notoriously corrupt

So SNC-Lavalin obtained contracts in Libya. Libya ranks 11th on the most corrupt countries list. The country was such under Kadhafi. Could even one company obtain contracts in Libya without kickbacks? It is possible to think not. SNC-Lavalin played the game like everyone else.

Naivety

Of course, in the eyes of the law, the corruption of others is no excuse. The problem is that in the name of fighting corruption, naive individuals, yet well-intentioned, decided to forbid democratic little-corrupt countries to use kickbacks to sign contracts abroad. As a result, corruption has gone underground and companies from more realistic countries have had free play with openly corrupt countries,. All this because for certain righteous individuals, corruption is first and foremost the fault of western countries.

Corruption comes from within

But the truth of the matter is that corruption emanates from the countries in which it is found. No international company will ever dream of using corruption to land a contract in Denmark. that country is the least corrupt in the world. whereas in Haiti, this consideration will be among the first considered.

A serious crime

Corruption is a serious crime. Canada should never under any circumstance tolerate this within its own borders. but imposing this condition on Canadian enterprises working abroad in corrupt countries is ridiculous and moralistic.

The solution

The solution consists in letting each country regulate tis own market. That Canadian and other companies engage in corruption in countries where this is the rule is not grounds for outrage. The law which forbids Canadian enterprises from using corruption abroad should be amended to allow these practices in very corrupt countries.

Government complicity

If not, then the Canadian government should forbid Canadian companies from selling their products in approximately 130 countries on this planet. Yet, the Canadian government does the contrary, it encourages companies such as SNC-Lavalin to work everywhere in the world, including notoriously

corrupt countries. In this context, the Canadian government has encouraged - hypocritically - SNC-Lavalin engaging in corruption in countries such as Libya. The Canadian government is guilty of complicity in the SNC-Lavalin Libya affair.

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https://www.osler.com/en/blogs/risk/september-2018/deferred-prosecution-agreements-dpas-come-into-force-in-canada

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