SNC Lavalin subsidiary faces World Bank ban

An unnamed subsidiary of SNC Lavalin has been temporarily barred from bidding on World Bank projects, following an investigation into irregularities on the World Bank-funded Padma Bridge in Bangladesh.

The World Bank launched an investigation in September and has suspended the subsidiary as a result. SNC Lavalin has the right to respond to allegations in the confidential report before a final decision on its subsidiary's debarment is taken.

SNC Lavalin said it would provide a comprehensive response to the allegations. "We respect the World bank's decision to declare a temporary suspension on the subsidiary affected until this matter is concluded. We should be clear, however, that all ongoing projects and new bids by other subsidiaries and divisions will as usual. We launched our own internal investigation when this matter was first brought to our attention and we will continue to cooperate fully with the World Bank on this matter," said interim CEO Ian Bourne.

SNC-Lavalin had bid for the role of the client's engineer on the Padma Bridge, which would have seen it acting for the government of Bangladesh to supervise contractors on the project.