SNC-Lavalin
hires independent consultant to advise on anticorruption measures.
The cultural overhaul of embattled engineering firm SNC-Lavalin is now fully engaged.
On the heels of an administrative shakeup last week, the company announced Thursday that it has hired high-profile American compliance adviser Michael Hershman to conduct an independent review of its internal practices.
He will be part of “a group of experts and advisory counsel to the president (Robert Card) on specific procedures, offering consultation on best practices in the areas of compliance, governance and anticorruption,” the company said.
Hershman, a former special agent with U.S. military intelligence, is president and chief executive officer of the Fairfax Group, a Virginiabased company that assists governments, corporations and financial institutions in matters relating to the conduct of senior-level officials and/or the entities with which they do business.
“I wouldn’t be here except for Bob Card (SNC’s new chief executive) and my respect for him,” Hershman said. “I’m convinced they mean what they say about wanting to change this environment.”
SNC’s international reputation has taken a beating in the last year because of allegations of improper payoffs, misdirected funds and outright fraud, at home and abroad. Card’s predecessor, Pierre Duhaime, stepped down in March and in Decem- ber was charged, along with another former SNC executive, with conspiracy to commit fraud in connection with a McGill University Health Centre contract.
“Regardless of the outcome of the investigations, this company must reform,” Hershman said.
“New leadership has made it clear they want to be a player in international anti-corruption measures globally.”
He said his mandate is “to ensure SNC becomes a model for good compliance and governance going forward,” something it pledged to do in a document called “commitment to excellence,” released last month.
The company already had retained the Freeh Group International Solutions, an independent global riskmanagement group with expertise in business ethics, governance and compliance. Founded by former FBI director Judge Louis J. Freeh, it’s been working with the company since last fall.
Hershman said he’ll be reviewing internal systems and controls and then making recommendations on how to increase transparency and accountability.
“It’s a forward-looking process. All issues from the past must be dealt with,” said Hershman, who was brought in as independent compliance adviser in another high-profile case in 2006 when German electronics and engineering company Siemens AG faced a bribery scandal over payoffs made to public officials in Libya, Russia and Nigeria.
“It’ll be a lengthy process,” he predicted. “You cannot make the necessary changes overnight.”
SNC said the moves are “further evidence of our intent to have in place all the measures necessary to meet or exceed the needs of our clients and the highest standards in governance and ethics.”