SNC suspends payments to former CEO
MONTREAL (AP) — Canadian engineering and construction giant SNC-Lavalin is suspending payments to a former CEO and shaking up its management in a bid to protect its reputation amid corruption charges leveled at several former executives.
SNC said Thursday that while the allegations have not been proven in court, it was suspending payments to Pierre Duhaime, who was charged with fraud last month.
SNC says the allegations suggest there may be additional facts that it was not aware of at the time of his departure.
Duhaime received a $5 million payout after he stepped down as president and CEO last March amid an internal accounting investigation.
He was arrested two weeks ago in connection with alleged fraud that include allegations he falsified documents in connection with a contract with a Montreal hospital.
Meanwhile, the Montreal-based company announced that it has also begun a search for a new chief financial officer to replace Gilles Laramee, who will head a new business unit.