True North Report: SNC-Lavalin never has to face consequences
Episode Stats
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Summary
Why does S&C Lavalin get a pass when it comes to corruption in Canada's political system? In this episode, Andrew Lutton discusses why one company seems to get a free pass, and why no one else does.
Transcript
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Good afternoon, everyone. Welcome to another edition of the True North Report.
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My name is Andrew Lutton, a fellow with True North, and here to tackle the great big world of corruption,
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which in Canadian politics right now is a little bit bigger than I think we have time for.
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So we'll narrow it down and discuss specifically why one company seems to be getting a pass when it comes to their corruption,
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and I don't even have to say alleged corruption in a number of cases because there's been findings of guilt against them,
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Now, I know it was a few months ago, I think January specifically, that this company first, I'll say, exploded into becoming a household name in Canada.
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It's a large company. They've got thousands upon thousands of employees, billions of dollars in work,
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and long-standing connections to the federal government and governments around the world.
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But I would say that it wasn't at the top of most Canadians' consciousness until January,
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until that infamous Globe and Mail story in which it was said that Jody Wilson-Raybould was the recipient of pressure,
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when she was the Attorney General, to offer a deferred prosecution agreement to S&C Lavalin.
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And I think this started really a chain effect where three months later, everyone in Canada knows S&C Lavalin and not in a very positive light is that company discussed and known.
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But even with that, there still is a great deal that needs to be understood about why this company has been continuously given passes over its wrongdoing.
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And the story this week that I wanted to talk about in this context is the revelation of who, in fact, was on that famous list of 18 names of people who donated illegally to Canada's political parties,
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specifically the Liberals, and were reimbursed, again, illegally by S&C Lavalin.
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Now, this was a scheme orchestrated by S&C Lavalin, was operating between 2004 and 2009.
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And during this time, about $8,000 was contributed to the Conservatives illegally,
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and $110,000 was contributed illegally to the Liberal Party of Canada, to four Liberal riding associations,
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And why this is so important is because the left has responded to the news of this by saying,
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oh, but, you know, they were donating to everyone.
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Well, yes, they did technically donate to both the Liberals and the Conservatives,
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8,000 to the Conservatives and 110,000 to the Liberals.
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And more importantly, you've got to look at how both of the parties responded to it.
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And this is where the Liberals themselves have tried to keep their long-standing ties to S&C Lavalin buried,
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when the Conservatives have been forthright about this.
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Elections Canada has an investigator looking into S&C Lavalin.
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The Commissioner of Canada Elections does a finding that S&C Lavalin illegally reimbursed employees
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and directors and executives and their spouses of this amount of money.
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And they did this and released a letter to the Liberals and to the Conservatives saying,
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just so you know, these are the people that were involved.
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Well, the Conservatives handed over the list immediately upon request to the media.
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The Liberals have, for the last three years, refused to disclose who the donors were.
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And this is very, very significant in Canada right now,
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because illegally contributed money is taken very seriously,
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or let me say, is supposed to be taken very seriously.
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The Liberals just said, okay, well, you know, it was a mistake and we refunded the money and that's that.
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And the reason why it didn't is because it signed a letter,
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a compliance agreement saying it won't break the law again in the future.
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Now, I wrote about this in my Looney Politics column this week.
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I thought the whole point of being a country with laws
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is that the existence of law and your being a citizen of a country is your compliance agreement.
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That's you saying you're not going to commit the law or you're not going to break the law.
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When you do, I think it's safe to say that, yeah, you've broken the unwritten compliance agreement
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They willingly subverted campaign finance laws.
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Corporate contributions to the political process have been illegal since 2004.
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So immediately, right out of the gate, wanted to start currying favor with political parties.
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Which means this wasn't just S&C sucking up to the party that was in power,
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And S&C still contributed to this scheme, or through this scheme, rather,
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Which means this is not just an example of a company doing what's called hedging
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or trying to get in the good books of whoever was governing.
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This was a company that was specifically trying to,
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And it was only in 2016 that Canadians started to learn a little bit about this.
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And even then, it got pretty much no coverage in the media.
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It wasn't until the S&C Lavalin stories of the last few months
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that people started looking back and seeing just how long a chain of events there has been
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of misconduct, alleged wrongdoing, and proven wrongdoing by S&C Lavalin.
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I am not impugning specific people in the company.
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I'm not even looking at the company in its current iteration
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and taking aim at its CEO, its board of directors, any of these people.
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Because the company says it's done a clean house,
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and they've basically been able to get rid of anyone that's been involved
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out of the picture, and replace them with new people.
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I'm speaking about the company itself and the company's track record,
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which is one that is inextricably linked to corruption,
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Bribery of Canadian officials, bribery of Libyan officials, bribery abroad.
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So corrupt has S&C Lavalin been that even the World Bank,
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I mean, people don't realize how significant that is.
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well, if there's a business case, you know, we'll back you.
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But they will not do business with S&C Lavalin.
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Of all the development projects around the world that S&C has,
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the World Bank will not have anything to do with them.
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And they're the reason that I think it was about four or five years ago,
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Canada topped the corruption list of the World Bank
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because, you know, of the, you know, 100 companies on their blacklist,
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96 of them or something like that were S&C Lavalin affiliates
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We're not talking about a couple of petty contributions to the Liberal Party.
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We're talking about a chapter in a longstanding pattern of behavior by the company.
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And that's why it's so unconscionable that S&C Lavalin never has to deal with the consequences
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And I want to go back to that contribution scheme
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because I think this is a significant example of the broader problems here.
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So there were 18 people that were illegally contributing.
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oh, yeah, definitely this was a scheme run by the company.
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Others have said, well, I don't remember any wrongdoing and whatnot.
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The finding by the Commissioner of Canada Elections
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None of the company members faced charges except for one person.
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And that was a former Vice President of S&C, Norman Moran,
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who just a couple of years ago, or actually, no, a couple of months ago,
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the penalty for a legal six-figure sum of money
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I think that's 1.8% of the total value of this scheme.
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These S&C labeling executives, I think, spend $2,000 on lunch.
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Now, here's a guy, he's retired, he's not in the picture right now,
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because of this so-called compliance agreement.
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And I think that this compliance agreement narrative
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is so similar to the deferred prosecution narrative
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and making her determination as the Attorney General.
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And she looked at the math, she looked at the record,
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we're going to look after the best interests of the company
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that that was not the position taken by the federal government.
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Justin Trudeau wanted to get her to keep thinking about it
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reconsidering until she changed her mind to his position.
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It's not, okay, I want you to have all the facts
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It's, I want you to keep thinking and keep trying
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in that recorded phone call with Michael Wernick,
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where he's going to get this done one way or another.
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Pressure that Justin Trudeau said never happened.
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And that was why ultimately she resigned from cabinet,
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and is now not even able to run as a liberal candidate
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So the Jody Wilson-Raybould issue is significant
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of where if the federal government had its way,
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have not been facing consequences for its action.
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just sign a little letter and all the problems go away.
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I do have some sympathy for the company's position
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if the company were forced into a negative situation economically.
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that have nothing to do with the corruption and bribery
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And there's no easy solution to that politically,
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no, no, no, we're going to do better next time.
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that keep taking them back time and time again.
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and a government that has allowed that to happen.
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The liberals should be accounted for their actions.