external and internal analysis for this case study?

Case Study: SNC-LAVALIN GROUP INC. by Steven L. MicShane, Univenity of Neveastle (Australia) Bribery of forcign poblic officials, conspiracy to commit to arrange permits, imports, and octher activities. Howevel, frand and forgery, money laundering. possessing property investigators uncovered numerous questionable transfers obtained by crime, and attempts to secretly smuggle the son of large funds from SNCL. to banks in Switherland, the of a forder dictator into safer countries. Sounds like the Bahamas, and oeher countries, allegedly for agent fees. plot of a twisted crime novel. Yet these are the charges laid . The largest corruption of the "agent fee" process imvolved plot of a twisted crime novel. Yet these are the charges laid against former executives at SNC-Lavalin (SNCL), one of SNC largest corruption of the, "agent fee" process imvolved Canada's largest engineering and constraction firms._ to a Swiss bank account controlled by an SNCL. evocutive The Royal Canadian Monoted Police allege that over vice-president working in Noeth Africa and later at headquar- the past decade SNCL funnelled $118 million throuph off- ter in Montreal. The executive was subsequently ociavictad the past decade SNCL funnclled SII8 million through off- ters in Montreal. The executive was subvequently cxiavicitod Separately, the World Bank, the African Development Bank; laundering regarding these funds, $47 milkon of which he Swiss potice, and other entities uncovered evidence that handed over to Swiss authorities as part of that convictica. SNCL bribed or attempted to bribe government staff and During the Swiss trial, the executive admittod that he toribod leaders to win contracts in Africa and Asia. SNCL, is also leaders to win contracts in Africa and Asia. SNCL is also Sadi Gaddafi, a son of Libya's dictator at that time, for the on a major Canadian projoct involving a Montreal super. In separale charges, an fCCMP affidavit claims that the same hospital. Almost a dozen formor SNCL cxocutives, most of evecutive masterminded a failed attempt to smuggle Saadi activity of are under investigation. The company and its 100 tractor in Camads spent 18 moeths in a Mexican prison in subsidiaries have been banned for a decade from bidding on relation to that mission. World Bank-funded contracts. The World Bask and other. investigatoes report that and others for recovery of the traneferred funds, claiming in several contracts SNCL processed bribes through an that they were intended as legitimate agent fees. The exect expense line called "project consultancy cost" or PCC. tive counterclaims that the top brass (below the board levei) For example, SNCL. settled a corruption case filed by the had arranged or knew these fands were being used tor brib- African Development Bark, which had discoverod project ery payments and that the executive was following ardern. consultancy cost items representing 7.5 percent of the total Separate actions by SNCL's CEO at the time lend support to contract value of two SNCL, road projects in Uganda and the jailed executive's claims. Specifically, ia spite of opposiMozambique. The engineering firm has acknowlodged that tion from the chief financial officer and head of international none of these expenses were legitimate. "Everybody used operations, the CEO authorized undocumented paymeds this term, and all know what that means," adinits SNCL's totalling $56 million to unknown "agents" in Lalyya and the former director of international projects. Soenetimes it was Bahamas. Quebec's anti-corruption police say the CEO's "project constaltancy cost," sometimes 'project commercial largest undocurnented payment (572 5 millioa sent to the coss,but[the]realfactistheintentionis[a]bribe,"SNCl,paidmanyofthePCCbribesindirectlythroughpitalcontract.TheCEOresignedwhenaninternalroviswBahamas)wasabribetowinamajorMontrealsuperhos- SNCL paid many of the PCC bribes indirectly through pital contract. The CEO resigned when an internal rovicw told to use his personal funds to pay a Nigerian official for granied the CEO a severance payout, bet abose paymens a "soils investigation." The official had selccted the engi- were later stopped when Quebec's anti-carruption police neering firm for a contract. The engincer was subsequently charged the former CEO with fraad. reimbursed by SNCL through a fictitious company. When Another SNCL vice-precident now facing several charges asked why he participatod in the kickhack scheme, the engi- also admits to engaging in bribery and relatod crimes. He neer (who now works in India for asother company) repliod: explained that SNC-Lavalin had "a cuporate culture where it "When the boss asks, in that part of the world.. What woald Was common practice to do all that was necessary, inclading you do if you were put in my shoes if you were in a remotes. the payment of "commissions" and other benefits to obalis area of Nigeria?" contracts, including in Libya." The second exceutive also area of Nigeria?" officials was throogh "agent feet "Retaining a local agent is activities because the execitive above him said that be hast common and sometimes required for forcign contracts bids. to follow their orders to eatisfy their expectations." In fact, a few former SNCL executives have since tried to sue the company for wrongful dismissal on the grounds that their illegal activities were required by the company to keep their jobs. SNCL's board of directors seems to have downplayed personal responsibility for these events. Very early in the RCMP investigation, SNCL's board received an anonymous internal letter describing the bribery activities, yet the board later admitted that it only "took note" of the allegations, pointing out that they have "received anonymous letters before that have no credibility." And when the extent of wrongdoing at SNCL eventually became public, the board chair said: "Clearly, our board of directors can't govern something that they don't know about, or prevent something they are not aware of." Case Study: SNC-LAVALIN GROUP INC. by Steven L. MicShane, Univenity of Neveastle (Australia) Bribery of forcign poblic officials, conspiracy to commit to arrange permits, imports, and octher activities. Howevel, frand and forgery, money laundering. possessing property investigators uncovered numerous questionable transfers obtained by crime, and attempts to secretly smuggle the son of large funds from SNCL. to banks in Switherland, the of a forder dictator into safer countries. Sounds like the Bahamas, and oeher countries, allegedly for agent fees. plot of a twisted crime novel. Yet these are the charges laid . The largest corruption of the "agent fee" process imvolved plot of a twisted crime novel. Yet these are the charges laid against former executives at SNC-Lavalin (SNCL), one of SNC largest corruption of the, "agent fee" process imvolved Canada's largest engineering and constraction firms._ to a Swiss bank account controlled by an SNCL. evocutive The Royal Canadian Monoted Police allege that over vice-president working in Noeth Africa and later at headquar- the past decade SNCL funnelled $118 million throuph off- ter in Montreal. The executive was subsequently ociavictad the past decade SNCL funnclled SII8 million through off- ters in Montreal. The executive was subvequently cxiavicitod Separately, the World Bank, the African Development Bank; laundering regarding these funds, $47 milkon of which he Swiss potice, and other entities uncovered evidence that handed over to Swiss authorities as part of that convictica. SNCL bribed or attempted to bribe government staff and During the Swiss trial, the executive admittod that he toribod leaders to win contracts in Africa and Asia. SNCL, is also leaders to win contracts in Africa and Asia. SNCL is also Sadi Gaddafi, a son of Libya's dictator at that time, for the on a major Canadian projoct involving a Montreal super. In separale charges, an fCCMP affidavit claims that the same hospital. Almost a dozen formor SNCL cxocutives, most of evecutive masterminded a failed attempt to smuggle Saadi activity of are under investigation. The company and its 100 tractor in Camads spent 18 moeths in a Mexican prison in subsidiaries have been banned for a decade from bidding on relation to that mission. World Bank-funded contracts. The World Bask and other. investigatoes report that and others for recovery of the traneferred funds, claiming in several contracts SNCL processed bribes through an that they were intended as legitimate agent fees. The exect expense line called "project consultancy cost" or PCC. tive counterclaims that the top brass (below the board levei) For example, SNCL. settled a corruption case filed by the had arranged or knew these fands were being used tor brib- African Development Bark, which had discoverod project ery payments and that the executive was following ardern. consultancy cost items representing 7.5 percent of the total Separate actions by SNCL's CEO at the time lend support to contract value of two SNCL, road projects in Uganda and the jailed executive's claims. Specifically, ia spite of opposiMozambique. The engineering firm has acknowlodged that tion from the chief financial officer and head of international none of these expenses were legitimate. "Everybody used operations, the CEO authorized undocumented paymeds this term, and all know what that means," adinits SNCL's totalling $56 million to unknown "agents" in Lalyya and the former director of international projects. Soenetimes it was Bahamas. Quebec's anti-corruption police say the CEO's "project constaltancy cost," sometimes 'project commercial largest undocurnented payment (572 5 millioa sent to the coss,but[the]realfactistheintentionis[a]bribe,"SNCl,paidmanyofthePCCbribesindirectlythroughpitalcontract.TheCEOresignedwhenaninternalroviswBahamas)wasabribetowinamajorMontrealsuperhos- SNCL paid many of the PCC bribes indirectly through pital contract. The CEO resigned when an internal rovicw told to use his personal funds to pay a Nigerian official for granied the CEO a severance payout, bet abose paymens a "soils investigation." The official had selccted the engi- were later stopped when Quebec's anti-carruption police neering firm for a contract. The engincer was subsequently charged the former CEO with fraad. reimbursed by SNCL through a fictitious company. When Another SNCL vice-precident now facing several charges asked why he participatod in the kickhack scheme, the engi- also admits to engaging in bribery and relatod crimes. He neer (who now works in India for asother company) repliod: explained that SNC-Lavalin had "a cuporate culture where it "When the boss asks, in that part of the world.. What woald Was common practice to do all that was necessary, inclading you do if you were put in my shoes if you were in a remotes. the payment of "commissions" and other benefits to obalis area of Nigeria?" contracts, including in Libya." The second exceutive also area of Nigeria?" officials was throogh "agent feet "Retaining a local agent is activities because the execitive above him said that be hast common and sometimes required for forcign contracts bids. to follow their orders to eatisfy their expectations." In fact, a few former SNCL executives have since tried to sue the company for wrongful dismissal on the grounds that their illegal activities were required by the company to keep their jobs. SNCL's board of directors seems to have downplayed personal responsibility for these events. Very early in the RCMP investigation, SNCL's board received an anonymous internal letter describing the bribery activities, yet the board later admitted that it only "took note" of the allegations, pointing out that they have "received anonymous letters before that have no credibility." And when the extent of wrongdoing at SNCL eventually became public, the board chair said: "Clearly, our board of directors can't govern something that they don't know about, or prevent something they are not aware of