Sami Bebawi’s business model called illegal, dishonest
Sides making final arguments before case goes to jury later this week
Sami Bebawi arrived at SNC-Lavalin in the late 1990s and developed a new business model that led to international fraud and corruption, a Quebec Superior Court jury heard Monday.
When the company was having trouble getting Libyan officials to pay a multimillion-dollar claim in early 2001, Bebawi told a subordinate to do whatever it takes to collect the money, prosecutor Anne-Marie Manoukian said during closing arguments of the six-week trial.
“The company adopted an unusual, unlawful and dishonest practice by artificially inflating the prices of contracts, paying bribes and misappropriating money for personal gain,” Manoukian said.
When Bebawi’s subordinate in Libya, Riadh Ben Aissa, developed a friendship with Saadi Gadhafi, Bebawi encouraged him to nurture the relationship because he knew it would help the company obtain construction contracts, Manoukian said.
At the time, Libya was run by former dictator Moammar Gadhafi and all major deals were approved by him or members of his family.
Ben Aissa had testified that there were no limits to what he could do to secure a deal for lucrative contracts.
“The end justifies the means,” Manoukian said on Monday, adding that Ben Aissa would have had to leave the company if he didn’t follow Bedawi’s business practices.
She reminded jurors that Bebawi signed off on the purchase of a $25-million luxury yacht for Saadi Gadhafi after Gadhafi was instrumental in helping the company get a multimillion-dollar contract in the North African country.
Bebawi, 73, faces eight charges, including fraud, corruption, laundering proceeds of crime and bribery of foreign officials. He is a former vice-president of the firm.
SNC-Lavalin was so keen to have the younger Gadhafi’s support that the company lobbied Ottawa to give him a visa for a trip to Canada in the winter of 2001, Manoukian said.
Manoukian read the jury internal emails that showed the company wanted to put Gadhafi and his five bodyguards up in Montreal’s most luxurious hotel. He would be given a whole floor and provided with VIP service when he arrived at Dorval airport. The email noted that people collecting Gadhafi from the airport should take winter clothing in case he and his entourage weren’t properly dressed.
While Ben Aissa was the company’s main executive in Libya, he established a shell company that was used to pay bonuses and kickbacks. Over a 10-year period, SNC-Lavalin transferred more than $118 million to Swiss bank accounts belonging to him and Bebawi, Manoukian said. The two men went to Geneva and opened the accounts together, the jury heard.
About $14 million was transferred to Bebawi and another $11 million was sent to his uncle’s bank account. Ben Aissa received about $35 million.
After Ben Aissa was arrested in Switzerland, Bebawi offered to lend him $4 million, $3 million of which would be forgiven if Ben Aissa agreed to change his testimony to match a version of facts submitted by Bebawi and his lawyer, the jury heard. At the time, Ben Aissa was in a Swiss jail. Ben Aissa turned down the offer and reported it to authorities.
Last week, Bebawi’s lawyers told jurors they would not present a defence.
Defence lawyers will present their closing arguments on Tuesday. The judge will instruct the jury on Wednesday and they will then be sequestered until they reach a verdict.