* Jarislowsky Fraser says believes SNC’s reputation won’t be
hurt in longer term
* Jarislowsky Fraser owns approximately 14 pct of SNC
* Canada says will provide consular assistance to arrested
ex-executive
* Former executive under arrest in Switzerland
* Police probing SNC for payments scandal, Bangladesh
allegations
April 30 (Reuters) – SNC-Lavalin Inc’s biggest
shareholder said on Monday it has “great confidence” in the
Canadian engineering company, a day after news of the arrest of
a former senior executive on charges of corruption, fraud and
money laundering.
SNC had done what it could to investigate allegations of
wrong-doing, and its reputation is unlikely to be greatly harmed
longer term, said Len Racioppo, president and director of
Jarislowsky Fraser, a Canadian investment group that owns
approximately 14.4 percent of SNC.
“Moving forward, is there reputational risk here? Perhaps,
but I don’t think that’s going to hurt the company significantly
longer term,” Racioppo said in an interview.
“We have great confidence in the company.”
SNC said last month that it had uncovered US$56 million in
improper payments to unknown agents on projects that did not
exist. Canadian police are investigating this, as well as
probing SNC over allegations about bribery in Bangladesh.
But the latest blow came from Switzerland, where the State
Prosecutor’s Office confirmed on Monday that Riadh Ben Aissa, a
former company executive had been arrested in Switzerland.
Ben Aissa, who left SNC’s employ in February, was the
group’s global head for construction operations and SNC has
linked him to its improper payments saga.
Montreal-based SNC is one of the world’s biggest engineering
groups, with operations in about 100 countries and revenue last
year of C$7 billion ($7.09 billion).
Amid the allegations, SNC’s stock price is down about 28
percent in the past three months.
The Canadian government said it will cooperate fully with
investigations into alleged wrongdoing at SNC and provide
consular assistance to Ben Aissa.
“There are very serious allegations being made against this
company, there are very serious investigations,” said Foreign
Affairs Minister John Baird in Parliament.
“The government will do everything it can to support
investigations and to be as helpful as we possibly can. Anyone
who breaks the law should bear the full force of the law …
whether it be in Canada or abroad,” he said.
