AtkinsRéalis — BrandWiki

AtkinsRéalis

Overview

AtkinsRéalis Group Inc.

trading name	AtkinsRéalis
type	Public
traded as	tsx: ATRL S&P/TSX 60 component
key people	Ian L. Edwards (President and CEO)‡R1R‡ William L. Young (Chair of the Board)‡R2R‡ Jeff Bell (Executive vice president and CFO)‡R3R‡
industry	Engineering, construction, airports, building services, electrical grids, environmental protection & remediation, hydroelectricity, manufacturing, metallurgy, mining, nuclear power, ports, rail transport, roads, water & wastewater
products	Engineering services, project management, construction, construction management, procurement and operations and maintenance

net income	▲ CA$287.2 million (2023)‡R4R‡

num employees	37,000 (2023)‡R4R‡

homepage	atkinsrealis.com

foundation	1911

founder	Arthur Surveyer

hq location	Montreal, Quebec, Canada

AtkinsRéalis Group Inc., formerly known as SNC-Lavalin Group Inc., is a Canadian company based in Montreal that provides engineering, procurement, and construction (EPC) services to various industries, including mining and metallurgy, environment and water, infrastructure, and clean energy. AtkinsRéalis was the largest construction company, by revenue, in Canada, as of 2021.[7]

The firm has approximately 37,000 employees worldwide,[4] with offices in over 50 countries and operations in over 160 countries.[8]

Key sectors

The company's key service sectors are buildings, defence, mining, electrical power, transportation, and water; each sector offers services that includes design, studies, consultancy, financing, asset management, engineering, construction, procurement and operations and maintenance.[9] Operations include mass transit and heavy rail systems, highways, bridges, airports and marine facilities, as well as industrial, commercial, cultural and healthcare buildings. Mining and metallurgy sector offers services to green fields and brown fields projects of any sizes or complexity including "mining commodities, fertilizers, and sulphuric acid facilities". Its power sector provides services in environment and water, the transmission and distribution of energy, hydro power, nuclear power, renewables and thermal power generation, energy from waste, electrical power delivery systems", and "clean and sustainable power technologies".[10]

History

SNC (1911–1991)

In 1911, Arthur Surveyer [sic] established a consulting engineering office, Arthur Surveyer [sic] & Cie., in Montréal after completing studies in Belgium and at Polytechnique Montréal and working for several years with public works.[11][12] Against the backdrop of the transformative advances in electrification.[13] Surveyer worked on hydropower projects with his partner, Augustin Frigon (1888–1952), an engineer, professor, and Director at Polytechnique Montréal[14] where Surveyer had earned his degree. In 1912, they worked on a power distribution network for the city of Grand-Mère on Saint-Maurice River. The project that increased the company's profile was the Saint-Maurice River hydroelectric power station, which they designed and supervised.[12]

Major domestic projects

In 2000, the Ontario government signed a $3.1 billion 99-year lease for Ontario Highway 407 with 407 International Inc., a conglomerate of three private companies, including SNC-Lavalin. It was renamed 407 ETR.[35] In the early 2000s, SNC-Lavalin won the contract to repair Montreal's Jacques Cartier Bridge.[36][37]

In 2002–2003 the firm completed a feasibility study of the Lac Doré Vanadium Deposit, in which they established the deposit as the largest vanadium deposit in North America.[38][39]

In 2005 SNC-Lavalin in partnership with Brun-Way Group, won the $543.8-million contract to build the Brun-way project to twin Route 2, the New Brunswick

International projects

In 1995, SNC-Lavalin won a large infrastructure contract to renovate and modernize hydro electric power stations with the Indian government.[52]

In 2007, the firm won the $4.6-billion Ambatovy mine engineering, procurement, and construction (EPC) management contract, the largest capital project in Madagascar's history. It was completed in 2010. The nickel and cobalt mining and preparation plant was completed in 2010. SNC-Lavalin sold its share for $600 million.[53] There has been controversy about the mine's environmental and health impacts.[54]

In December 2016, the firm won a BOO (build–own–operate) (BOO) contract from Crestwood Equity Partners valued at $100 million for multiple gas facilities in the Permian shale basin in the United States.[55] In March 2016, it was awarded an $800M EPC

Major investors

The Caisse de dépôt et placement du Québec is SNC-Lavalin's "long-term partner".[28] According to an article by Pierre Fortin in L'actualité, Quebec Deposit and Investment Fund (the Caisse), which manages the Quebec Pension Plan and is the second largest pension fund in Canada, after the Canada Pension Plan (CPP),[57] has increased its financing of Quebec enterprises from 2003 through 2013.[58][59]

Legal issues

SNC-Lavalin's management teams have been investigated in a number of allegations under the Corruption of Foreign Public Officials Act regarding contracts beginning with the SNC-Lavalin Kerala hydroelectric dam scandal (1995–2008) through to the allegations involving the bribing of Libyan officials between 2001 and 2011.

SNC-Lavalin Kerala hydroelectric dam scandal (1995–2008)

SNC-Lavalin won a large infrastructure contract to renovate and modernize hydroelectric power stations with the Current Chief Minister of Kerala Pinarayi Vijayan Indian government in 1995 which resulted in an alleged net loss to the Indian exchequer of 3745.0 million rupees,[52][60] but led to no charges against the firm. SNC-Lavalin was subsequently accused of bribery and financial fraud related to the contract in 2008. A government investigation resulted in the expulsion of several Indian government officials.[61]

Montreal's Jacques-Cartier bridge (early 2000s)

External links

References

SNC-Lavalin announces appointment of Ian L. Edwards as Interim President & CEO SNC-Lavalin, June 11, 2019, retrieved July 24, 2019^
William L. Young replaces Kevin G. Lynch as SNC-Lavalin's chairman Construction Week, September 14, 2020, retrieved January 13, 2024^
SNC-Lavalin appoints CFO, nominates new board members

SNC-Lavalin (1991–2023)

Bernard Lamarre remained with the newly formed company, SNC-Lavalin until 1999. He oversaw major projects including the TransCanada highway in Montreal, the Louis-Hippolyte-Lafontaine Bridge-Tunnel, the Olympic Stadium in Montréal, and Alcan in the Ville de La Baie. He also oversaw projects in Benin and in Algeria.[24]

Bernard Lamarre's younger brother, Jacques Lamarre, a civil engineer, became SNC-Lavalin's CEO in 1996 and left his post in 2009.[25]

Acquisitions and partnerships

According to Ingram, SNC-Lavalin partnered with Bombardier in the 1990s to build transportation projects in Malaysia and Turkey. SNC-Lavalin acquired a 27% share in Ontario's Highway 407 toll road for $175 million. In 2011, SNC-Lavalin sold part of its share of Highway 407, at a significant profit.

In June 2011, SNC-Lavalin purchased the commercial reactor division of Atomic Energy of Canada Limited (AECL) from the Government of Canada for CA$15 million. SNC-Lavalin established a subsidiary company named Candu Energy to market the design and supply of CANDU reactors.[26]

On June 23, 2014, SNC-Lavalin acquired Irish engineering and construction business Kentz for approximately CA$2.1 billion (US$1.95 billion).[27]

In 2017, SNC-Lavalin acquired its UK rival Atkins—a British design, engineering and project management consulting firm, for approximately CA$3.36 billion with $1.9-billion investment from [28] the Caisse de dépôt et placement du Québec.

In late 2018, SNC-Lavalin agreed to form a joint venture with the Swedish-Swiss industrial giant ABB for the delivery of turnkey electrical substation projects. This new company, named Linxon, undertakes project design, engineering, procurement, and construction activities for a range of clients in the transport, utilities, and renewable electricity generation and transmission sectors.[29]

In 2021 the company's oil & gas business, including the former Atkins and Kentz oil and gas businesses, was sold to Dubai-based Kentech Corporate Holdings.[30] After the transaction was completed Kentech changed its name to Kent plc.[31]

Libya (2011)

A 2012 CBC News report, said that the first reports of murky affairs surfaced against the company in 2010 in relation to contracts in Libya.[8] According to a CBC News article, a Libyan bribery and fraud scandal involving crimes that took place from 2001 to 2011 led to charges in "connection with payments of nearly $48 million" to Libyan public officials.[69] In the same article, it was reported that the company was also accused of "defrauding Libyan organizations of an estimated $130 million".[69][70]

In 2015, SNC-Lavalin was charged with bribing Libyan officials in exchange for construction contracts between 2001 and 2011.[70] In 2011, the RCMP began an investigation called Project Assistance which was triggered by a tip from Swiss authorities.[71] According to an August 16, 2013 Financial Post article, Michael Novak, who had been the head of SNC International, had "signed several of the contracts between SNC and commercial consultants for work in Africa" having declared that "he believed he was dealing with veritable consultants" [72]and having been later cleared of any wrongdoing by investigators, as reported by La Presse.[73] This included a contract with former Libyan dictator Muammar Gaddafi's controversial government.[74] By the summer of 2013, police alleged that the "unknown commercial consultants" had never existed and that Ben Aissa had "set up shell companies so he could pocket the [$56 million] himself". By July 2014, Aissa was jailed in Switzerland for "suspicion of corruption, fraud and money-laundering in North Africa".[75][76][77] When SNC-Lavalin pulled out of Libya in 2011, it left behind $22.9 million in Libyan banks.[78] In 2013, Roy filed a countersuit for wrongful dismissal, claiming lost wages and damages to his reputation, alleging that he had been framed and scapegoated by higher-level executives whose directives he was obliged to follow.[79][80][81][82][83]

By February 2012, SNC-Lavalin investors had found out that audited financial statements had been delayed to accommodate an internal review relating to SNC-Lavalin's operations. The internal review probed $35 million of unexplained payments in Libya. Prior to the launch of the investigation, there had been months-long media speculation about the company's work in Libya and its ties to the Muammar Gaddafi family.[84][85][86] In 2012, the RCMP investigated the company on these charges in the Project Assistance investigation and,[87] in 2015, they charged SNC-Lavalin with "fraud and corruption", which the company indicated they would contest in court.[88]

On December 18, 2019, SNC-Lavalin Construction Inc. pleaded guilty to fraud contrary to section 380(1) a)[89] of the Canadian Criminal Code. The company stated that, between 2001 and 2011, over $47.5 million had been paid to Al-Saadi Gaddafi. The money was directed through two representative companies, both listing Riadh Ben Aissa as the sole beneficial owner. In return for the bribes, Al-Saadi Gaddafi applied his influence to the construction contract bidding process, ensuring contracts were awarded to SNC-Lavalin Construction. Payments of personal benefits totalling over $73.5 million were also made through the representative companies to Ben Aissa and Sami Bebawi, a former vice-president of SLCI. As part of its plea agreement with the Public Prosecution Service, SLCI was fined $280 million and given a three-year probation order. In exchange, the remaining corruption and fraud charges against SNC-Lavalin Group Inc., SNC-Lavalin Construction Inc. and SNC-Lavalin International Inc. were stayed.[90]

After the bribes were discovered, the audit committee of the company's board launched an investigation into the matter, led by directors such as Claude Mongeau, then the CEO at Canadian National Railway.[91][92] During the audit committee investigation, the Financial Post wrote a story critical of full-time CEOs serving on the boards of directors of other companies, calling out Mongeau specifically.[92]

SNC-Lavalin affair (2019)

Following a 2017 public consultation process, the Government of Canada moved forward with the establishment of a "made-in-Canada version of a deferred prosecution agreement (DPA) regime", called the "Remediation Agreement Regime",[119] which was introduced in the March budget and came into effect in June 2018.[120] By 2019, SNC-Lavalin, still facing criminal charges in regard to several contracts, began investigating the possibility of a DPA under the newly introduced Remediation Agreement Regime, as early as April 2018.[121][119][70] On February 10, 2019, the Toronto Star reported that Opposition Leader Andrew Scheer met with SNC-Lavalin CEO Neil Bruce on May 29, 2018, to discuss the remediation agreement.[122] The director of public prosecutions informed SNC-Lavalin on October 9, that its DPA option was rejected because "is not appropriate in this case".[123] According to the National Post, "If the company is convicted it would be barred from bidding on federal contracts for 10 years, potentially costing it billions in forgone revenue."[123] In response, the company's share prices dropped, leaving it vulnerable to a hostile takeover. According to the Montreal Gazette, Quebec Premier François Legault said that SNC-Lavalin was one of ten publicly traded companies headquartered in Quebec that the province considers to be "strategic" and therefore in need of protection from a takeover that would force the company to leave the province.[124]

On February 8, 2019, the Globe & Mail reported that sources close to the government said that the Prime Minister's Office allegedly had attempted to influence Jody Wilson-Raybould's decision concerning SNC-Lavalin's request for a DPA, while she was Minister of Justice and Attorney General. When asked about the allegations, Justin Trudeau said that the story in the Globe was false and that he had never "directed" Wilson-Raybould concerning the case.[125] Wilson-Raybould refused to comment on the matter citing solicitor-client privilege.[126] Under pressure from the Conservative Party of Canada and the New Democratic Party (NDP), on February 11, 2019, the conflict of interest and ethics commissioner launched an inquiry into allegations of political interference and a possible violation of the Conflict of Interest Act in the SNC-Lavalin case.[127][70]

On February 18, 2019, Gerald Butts, Trudeau's principal secretary, resigned and denied that he or anyone else in the Prime Minister's Office attempted to influence Wilson-Raybould.[128]

On February 27, 2019, Wilson-Raybould spoke about the SNC-Lavalin controversy at a hearing of the House of Commons justice committee. In her first substantial public statement on the matter, she testified that she was inappropriately pressured to prevent the Montreal-based company from being prosecuted in a bribery case.[129]

On 14 August 2019, Mario Dion, conflict of interest and ethics commissioner, released a report that said Trudeau contravened section 9 of the Conflict of Interest Act by improperly pressuring Wilson-Raybould.[130][131][132][133] The report details lobbying efforts by SNC-Lavalin to influence prosecution since at least February 2016, including the lobbying efforts to enact DPA legislation. The commissioner has also found that Trudeau acted improperly when using his position of authority over Wilson-Raybould in an effort to have her overrule the director of public prosecution's decision not to negotiate a deal with SNC-Lavalin that would see the company avoid criminal prosecution over charges of corruption and fraud stemming from an RCMP investigation. The report analyses SNC-Lavalin's interests and finds that the lobbying effort advanced private interests of the company, rather than public interests. The report's analysis section discusses the topics of prosecutorial independence and Shawcross doctrine (dual role of Attorney General) to draw the conclusion that the influence was improper and a violation of Conflict of Interest Act.[130]

Company responses

SNC-Lavalin CEO Pierre Duhaime resigned in March 2012 and was arrested by Quebec's anti-corruption squad on charges including fraud on November 28, 2012.[105] He was replaced by Ian A. Bourne, who was also the chairman of Ballard Power Systems and a member of the CPP Investment Board. Bourne sat on SNC-Lavalin's board of directors beginning in 2009, before the "allegations of fraud and corruption in Libya"[134] were made. As interim CEO from May 2012 to October 2012, Bourne oversaw a "major overhaul"[134] of SNC-Lavalin's culture. Bourne resigned as chairman and as a director in March 2015 and was replaced by Lawrence N. Stevenson, who sat on SNC's board from 1999 until 2018.[134]

Just before retiring from SNC-Lavalin in May 2012, Gwyn Morgan—who had been chair since 2006[135]—hired American civil and environmental engineer Robert Card as CEO. Card was instructed to revamp the company's "ethics and compliance standards" and oversee the departure of existing management that had been involved in the scandals. During this period, over 10,000 Canadian employees left the company, many of them voluntarily. By 2013, when Card had completed his "strategic offensive" against previous SNC-Lavalin management, Neil Bruce, a native of Scotland, replaced Card.[136] By August, four senior executives had departed, including Gilles Laramée, former CFO, Ric Sorbo, former head of SNC's oil and gas business, Patrick Lamarre, head of the power unit, and Michael Novak.[137] SNC-Lavalin also dismissed financial controller Stéphane Roy.[103][81]

Bruce undertook a campaign to improve ethics and compliance at all levels of the company management. This included using Transparency International's corruption rankings as a guideline in deciding which countries with which SNC-Lavalin would do business.[136] In June 2019 Bruce retired from the company.

In 2019, the investigations continued to affect the company and its CEO Bruce. SNC-Lavalin continued to face criminal charges in 2019 in regards to alleged bribes contracts between 2001 and 2011.[70] The company failed to receive a remediation agreement that would have provided a reprieve from criminal charges and now faces a potential conviction.[136] A new investigation involving potential bribery in relation to a repair contract in the early 2000s, has been reported by La Presse.[37]

AtkinsRéalis

Key sectors

History

SNC (1911–1991)

Major domestic projects

International projects

Major investors

Legal issues

SNC-Lavalin Kerala hydroelectric dam scandal (1995–2008)

Montreal's Jacques-Cartier bridge (early 2000s)

External links

References

Lavalin (1936–1991)

SNC-Lavalin (1991–2023)

Acquisitions and partnerships

Acquisitions and partnerships

AtkinsRéalis (2023–present)

Illegal reimbursement of political donations (2004–2011)

Libya (2011)

McGill University; the Arthur Porter kick-back scandal (2011–2014)

Padma Bridge (since 2011)

SaskPower serious design flaws (2015)

SNC-Lavalin affair (2019)

Company responses