Two policy moves that could help beleaguered SNC-Lavalin came out of public consultations on federal anti-corruption measures that a newly disclosed memo says were ordered by the Prime Minister's Office.
Prime Minister Justin Trudeau's staff directed Public Service and Procurement Canada to consult in 2017 on both its overall integrity regime and the possibility of introducing formal alternatives to prosecuting financial crimes, says the internal briefing note, released under the Access to Information Act.
As a result of a second thread of that 2017 consultation, the government is also proposing to soften the penalty scheme for companies involved in wrongdoing by changing the process for determining how long an offending firm should be barred from getting federal contracts. The Trudeau government has been plunged into controversy over anonymous accusations that Trudeau's aides improperly pressured former attorney general Jody Wilson-Raybould to overrule the public prosecutor -- which she had authority to do -- and make an agreement happen.
Under the existing integrity regime, a conviction could effectively bar the company from receiving federal contracts for 10 years. That could be devastating for a company whose business is civil engineering and construction. However, SNC-Lavalin could be dealt with less harshly if the government proceeds with proposed changes to the ineligibility provisions that flowed from the federal review of the integrity regime.
The proposal, which triggered another round of public consultations, was intended to take effect in early 2019, but the government has not yet indicated whether or when it will proceed.
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