On Feb. 7, the Globe and Mail published a shocking story alleging that the Prime Minister’s Office (PMO) had put pressure on the former attorney general and Justice Minister, Jody Wilson-Raybould, to avoid prosecuting the mammoth Quebec engineering firm SNC-Lavalin.
Back in 2015, the RCMP charged SNC-Lavalin with fraud and corruption, alleging that the company paid Libyan officials tens of millions in bribes and defrauded Libyan organizations out of $129 million.
This isn’t the first time the company has been in trouble with the law, though they insist their corporate culture has been reformed.
Shortly after the election that fall, SNC’s lobbyists went to work, meeting numerous times with top staff in the PMO about “justice and law enforcement” according to the federal lobbyist registry.
They also appealed to opposition leaders for support, as corporate influence in government is non-partisan.
The fruits of these labours appear to have come with the 2018/19 budget, a 582-page omnibus bill that introduced “deferred prosecution agreements,” a fancy term for letting corporations pay their way out of going to court for certain economic crimes.
It’s important to note that a conviction would block SNC-Lavalin from bidding on any federal government contracts for 10 years.
Already, both Premier Legault and former Premier Couillard have voiced support for a mediated agreement, as a criminal trial would be bad news for the thousands of Quebecers employed by the Montreal-based multinational.
Crown prosecutors opted against an agreement in October 2018, meaning that the case will likely go to trial, though SNC has appealed the decision.
Prime Minister Trudeau has vehemently denied he or his staff “directed” Wilson-Raybould towards any outcome, and she has so far refused to comment on the issue, citing solicitor-client privilege.
On Feb. 11, when questioned about the affair, Trudeau told reporters that Wilson-Raybould’s presence in cabinet “should speak for itself.” Later that day she resigned from cabinet and retained a former Supreme Court justice as legal counsel, a move that “surprised and disappointed” the PM.
That same day, the Ethics Commissioner launched an investigation into whether the discussions surrounding the case broke conflict of interest laws. Despite all the hand-waving and “Nothing to see here” rhetoric, clearly something is rotten in the state of Denmark.
In a surprise move, Trudeau’s principal secretary, Gerald Butts, stepped down on Monday while categorically denying the claims made in the Globe.
Though this unfolding scandal is a lurid tale, it’s not a particularly shocking one. Most people aren’t surprised that massive corporations with pricey lawyers and lobbyists play by a different set of rules.
Last month, senior officials from the government extolled the virtues of the “rule of law” when it came to the detention of Chinese tech executive Meng Wanzhou. No company or individual should be above the law, especially those that wield incredible economic might. A company that is too big to be prosecuted is too big to exist.
Caleb Nickerson
