Thursday, March 1, 2012
Montreal-based company SNC-Lavalin suffers stock decline after questionable payments surface
The Quebec-based company has started an investigation into payments of 35 million dollars in payments on construction projects that are questionable. There is speculation that the payments may be tied to projects that the company had in Libya under the Gadaffi regime.' The payments are said to be undocumented!
After the news the company's stock fell over 20 per cent in value. This is the largest drop in the stock since 1992. Analysts worried that the company reported it was investigating certain other contracts as well.
The head of SNC's construction division has already resigned after his close relations with one of Gadaffi's sons was revealed. The firm suffered 23 million ins losses on Libyan projects once the rebellion forced them to close down. For much more on SNC-Lavalin and its Libyan problems see the full article.