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SNC-Lavalin affair

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Prime Minister of Canada Justin Trudeau, pictured in 2018.

The SNC-Lavalin affair (French: L'affaire SNC-Lavalin)[1], also known as the SNC-Lavalin controversy or SNC-Lavalin scandal, is an ongoing political scandal in Canada involving alleged political interference and obstruction of justice by personnel in the Prime Minister's Office. The allegations centre around purported pressure put on Jody Wilson-Raybould, Canada's Minister of Justice and Attorney General at the time, to intervene in an ongoing criminal prosecution case against Quebec construction giant[2] SNC-Lavalin.[3]

During Justice Committee hearings, Wilson-Raybould testified on what she perceived as a consistent and sustained effort by members within government to politically interfere in her duty as Attorney General and offer SNC-Lavalin a deferred prosecution agreement.[4] The Trudeau government has maintained that the lobbying effort would have protected over 9,000 jobs in Canada, that no laws were broken and no undue pressure was applied to Attorney General, and that the whole situation resulted from misunderstanding and "erosion of trust" between the Prime Minister, Justin Trudeau, and Wilson-Raybould.[5][6][7]

Background

SNC-Lavalin

On February 19, 2015, the Royal Canadian Mounted Police (RCMP) and the Public Prosecution Service of Canada (PPSC) laid charges against SNC-Lavalin Group Inc., SNC-Lavalin International Inc. and SNC-Lavalin Construction Inc. Each firm was charged with one count of fraud under section 380 of the Criminal Code of Canada and one count of corruption under Section 3(1)(b) of the Corruption of Foreign Public Officials Act. The charges stemmed from the activities of the company in Libya under Muammar Gaddafi's government from 2001 to 2011. It was alleged that the company bribed Libyan public officials with C$48 million and defrauded organizations of an estimated $130 million.[8][9]

If convicted, under Integrity Regime policy, SNC-Lavalin could have been banned from bidding on government contracts for up to 10 years.[10]

In 2016, the company started a lobbying effort with the newly elected Liberal government to avoid the criminal prosecution. The effort lasted two years and involved 51 meetings with government officials.[11] Targets of SNC-Lavalin's lobbying included the Minister of Public Services and Procurement, Carla Qualtrough, as well as officials in the Prime Minister's Office (PMO).[12] The company advocated for the rapid adoption of legislation allowing deferred prosecution agreements and changes to Ottawa's integrity regime that prevents it from doing business with bad actors.[12]

Deferred prosecution agreements

In 2018, Prime Minister Justin Trudeau's government enacted deferred prosecution agreement (DPA) legislation as amendments to the Criminal Code after SNC Lavalin lobbied for such a provision for some years[13]. Through a DPA, sentencing and remediation agreements are negotiated, under the supervision of a judge, between federal prosecuting authorities and a corporation charged with an offence, usually in the context of fraud and/or corruption. Following approval and successful completion of the terms of the agreement, a company may apply for a judicial stay of criminal proceedings, and thereby avoid a criminal prosecution, trial, and penalties.[14][15]

Prosecutorial independence

Prosecutorial independence is a well established principle of Canadian constitutional law. In Miazga v Kvello Estate, the Supreme Court of Canada held, "The independence of the Attorney General is so fundamental to the integrity and efficiency of the criminal justice system that it is constitutionally entrenched. The principle of independence requires that the Attorney General act independently of political pressures from government."[16] Similarly, in Krieger v. Law Society of Alberta, the Supreme Court held, "It is a constitutional principle that the Attorneys General of this country must act independently of partisan concerns when exercising their delegated sovereign authority to initiate, continue or terminate prosecutions."[17] The role of the Attorney General of Canada is bound by the so-called “Shawcross doctrine”, based on a statement by Lord Shawcross in 1951. That statement outlines the parameters of what the Attorney General can and cannot take into account when making a decision. The doctrine states that the Attorney General must take into account matters of public interest; that assistance from cabinet colleagues must be limited to advice; that responsibility for the decision is that of the Attorney General alone; and that the government is not to put pressure on him or her.[18][19][20]

In practice, prosecutorial independence is enforced by maintaining an independent office responsible for prosecutions. Until 2006, Canada's Federal Prosecution Service was located within the Department of Justice, and, thus, was vulnerable to political interference from the Prime Minister or Cabinet. The PPSC was established in 2006, following the enaction of the Director of Public Prosecutions Act, as an agency independent of the Department of Justice.[21][22]

Under the Act, the Director of Public Prosecutions (DPP) is responsible for all federal criminal prosecutions. However, the Attorney General can issue a directive to the DPP regarding an ongoing prosecution or take control of a prosecution. Such directives must be provided in writing and published as a notice in the Canada Gazette.[21][22][23]

Discovery and scandal

On February 7, 2019, The Globe and Mail reported, citing anonymous sources, that the Prime Minister's Office, under the leadership of Trudeau, pressured then-Attorney General Jody Wilson-Raybould to intervene in ongoing criminal legal proceedings against SNC-Lavalin and abandon prosecution.[3]

In October 2017, following the criminal charges against it, SNC-Lavalin requested that the government consider pursuing a deferred prosecution agreement in order to avoid a lengthy and expensive criminal trial that could possibly bankrupt the company.[24] In October 2018, the PPSC rejected the request.[3] The report claimed that following the rejection, senior members of Trudeau's cabinet attempted to intervene in the case, urging Wilson-Raybould to overturn the DPP's decision.[3]

Trudeau denied the allegations, stating that "at no time did we direct the attorney general, current or previous, to take any decision whatsoever in this matter."[25]

During a cabinet shuffle on January 14, 2019, in a move widely seen as a demotion,[26] Wilson-Raybould was removed from her role as Attorney General to become the Minister of Veterans Affairs.[27] At the time, both Trudeau and Wilson-Raybould denied that she had been demoted.[28][29]

On February 12, 2019, Wilson-Raybould resigned as Minister of Veterans Affairs.[30] At the time, she refused to comment on the allegations regarding the case, citing solicitor-client privilege.[31] Trudeau said that he was "surprised and disappointed" by Wilson-Raybould's decision to resign.[32]

Anonymous sources complained Wilson-Raybould ..."had become a thorn in the side of the cabinet, someone insiders say was difficult to get along with, known to berate fellow cabinet ministers openly at the table.” Citing the innuendo, Grand Chief Stewart Phillip and Chief Robert Chamberlin asked Trudeau to condemn the "racist and sexist" statements made by his party members.[33]

Hearings

First hearing

On February 21, 2019, in response to the claims, the Justice Committee of the House of Commons began a series of hearings on the alleged interference. Michael Wernick appeared before the House of Commons Justice Committee. He disputed the allegations of undue pressure on Wilson-Raybould, and stated that the The Globe and Mail article contained errors and unfounded speculation.[34][35]

Second hearing

Former Canadian Attorney General Jody Wilson-Raybould

On February 27, 2019, Wilson-Raybould testified before the committee, corroborating the report by The Globe and Mail and detailing the alleged obstruction campaign.[4][36]

In her prepared statement, Wilson-Raybould said: "For a period of approximately four months between September and December 2018, I experienced a consistent and sustained effort by many people within the government to seek to politically interfere in the exercise of prosecutorial discretion in my role as the Attorney General of Canada in an inappropriate effort to secure a Deferred Prosecution Agreement with SNC-Lavalin." She provided details and dates of the meetings, and named eleven people involved with the alleged efforts to interfere, including Trudeau, Gerald Butts, Katie Telford, Bill Morneau, Wernick, and other high ranking officials in the PMO and Ministry of Finance.[4]

Despite the attempts to convince her to reconsider her stance given the possible economic and political consequences, Wilson-Raybould said she was "undaunted in her position to not pursue a Deferred Prosecution Agreement." She maintains the belief that despite the pressure she felt, she did not believe what transpired was illegal.[36] When asked why she didn't resign from her position during the time she said improper pressure was being applied, Wilson-Raybould said: "I was, in my opinion, doing my job as the attorney general. I was protecting a fundamental constitutional principle of prosecutorial independence and the independence of our judiciary. That's the job of the attorney general.”[36]

Wilson-Raybould also reiterated that Order in Council #2019-0105 leaves in place various constraints that prevent her from speaking freely about matters that occurred after she left the post of Attorney General, communications while she was Minister of Veterans Affairs, her resignation from that post, and her presentation to Cabinet after her resignation.[4] She stated she would be willing to testify further if released from those restrictions.[4]

Third hearing

Gerald Butts, the former Principal Secretary to Justin Trudeau

On March 6, 2019, the Justice Committee held a third hearing on the claims, at which Butts testified. Butts, who had been implicated in the affair by Wilson-Raybould at the previous hearing, served as the Principal Secretary to Trudeau in the PMO.[37]

During his testimony, Butts said that he did not want to discredit Wilson-Raybould's testimony, but wanted to offer his own "different version of events." He stated his belief that "nothing inappropriate occurred" and that "nothing inappropriate was alleged to have occurred until after the cabinet shuffle." Butts claimed that any conversations between Wilson-Raybould and officials in the PMO were intended only to ensure that she understood the full potential impact of a criminal conviction of SNC-Lavalin, and that at no time did anyone in the PMO attempt to influence Wilson-Raybould's decision. "It was not about second-guessing the decision. It was about ensuring that the attorney general was making her decision with the absolute best evidence possible," Butts testified.[37]

Butts further stated that no concerns were raised by Wilson-Raybould until after the January 12 cabinet shuffle had occurred: "If this was wrong, and wrong in the way it is alleged to have been wrong, why are we having this discussion now and not in the middle of September, or October, or November, or December?"[37]

During the Committee hearing, Liberal MPs blocked an effort by the opposition to immediately invite Wilson-Raybould back to speak further about the government’s effort to put pressure on her, despite the former justice minister’s willingness to testify again. Instead, Liberal members voted to reconvene the Justice Committee behind closed doors on March 19 to consider whether they will invite Wilson-Raybould and other senior government officials to testify. [38]

Reactions and aftermath

On February 11, 2019, after mounting pressure from the Conservative Party and New Democratic Party, Mario Dion, Canada's Ethics Commissioner, launched a federal investigation into the alleged interference.[39]

Elizabeth May, the leader of the Green Party, called for an independent, RCMP-led investigation into the allegations, stating that the "Ethics Commissioner is not the right place to seek such an inquiry; neither is the justice committee".[40]

Following the Justice Committee hearings on February 27, Andrew Scheer, the Leader of the Official Opposition, issued a statement calling for Trudeau's resignation, saying that the he had "lost the moral authority to govern".[41] On February 28, Andrew Scheer sent a letter to the RCMP Commissioner, Brenda Lucki, calling for an investigation into Trudeau’s actions in relation to the controversy.[42]

Trudeau gave a short press conference in Montreal following the hearings on February 27, denying the allegations. "I and my staff always acted appropriately and professionally," he said. "I completely disagree with the characterization of the former attorney general about these events...The decision around SNC-Lavalin was Ms. Wilson-Raybould’s and hers alone. This decision is the attorney general’s alone."[43]

Following Gerald Butts testimony, Trudeau gave a press conference in Ottawa on March 7. He again denied all allegations of inappropriate or illegal pressure, and said that "erosion of trust" and "breakdown in communications" have developed between him, his staff and the former Attorney General.[7]. Trudeau also confirmed that during a September 17 meeting he asked Wilson-Raybould to ‘revisit her decision’ not to negotiate an out-of-court settlement with SNC-Lavalin,[44] and asked his staff to follow up regarding Wilson-Raybould's final decision.[45]

Resignations

  • Gerald Butts who served as the Principal Secretary to Trudeau, denied that Wilson-Raybould had been pressured but resigned from his position on February 18, 2019 claiming that the accusation that he had pressured Wilson-Raybould was distracting from the work of the Prime Minister's Office.[46]
  • Jane Philpott, the President of the Treasury Board, resigned from her post in Trudeau's cabinet on March 4, 2019. In her statement she said that she had "lost confidence in how the government has dealt with this matter and in how it has responded to the issues raised."[47] Philpott was considered to be one of Trudeau's most trusted ministers.[48][49]

See also

References

  1. ^ https://ici.radio-canada.ca/nouvelle/1156996/affaire-snc-lavalin-justin-trudeau-declaration-publique
  2. ^ "Rankings for construction companies". The Globe and Mail. 30 April 2018.
  3. ^ a b c d Fife, Robert; Chase, Steven; Fine, Sean (7 February 2019). "PMO pressed Wilson-Raybould to abandon prosecution of SNC-Lavalin". The Globe and Mail. Retrieved 4 March 2019.
  4. ^ a b c d e "Read the full text of Jody Wilson-Raybould's statement to the House of Commons justice committee". National Post. 27 February 2019.
  5. ^ Perreaux, Les (28 February 2019). "Hostile takeover of SNC-Lavalin, impact on jobs in Quebec among worries for Premier Legault". The Globe and Mail. Retrieved 5 March 2019.
  6. ^ "Trudeau on SNC-Lavalin affair: We will always stand up for Canadian jobs". Global News. 4 March 2019. Retrieved 5 March 2019.
  7. ^ a b Harris, Kathleen (7 March 2019). "Trudeau says 'erosion of trust' led to SNC-Lavalin controversy". CBC News.
  8. ^ "SNC-Lavalin contests the federal charges by the public prosecution service of Canada, and will enter a non-guilty plea" (Press release). 19 February 2015.
  9. ^ Sutherland, Anne (19 February 2015). "RCMP charges SNC-Lavalin with corruption, fraud". Montreal Gazette.
  10. ^ "Guide to the Ineligibility and Suspension Policy". Government of Canada. 17 May 2017.
  11. ^ Cochrane, David (14 February 2019). "Inside SNC-Lavalin's long lobbying campaign to change the sentencing rules". CBC News.
  12. ^ a b "SNC-Lavalin CEO urged Ottawa to change anti-corruption rules". CBC News. The Canadian Press. 5 March 2019. Retrieved 5 March 2019.
  13. ^ read:https://nationalpost.com/opinion/andrew-coyne-it-was-wilson-rayboulds-decision-to-make-as-long-as-she-decided-it-their-way
  14. ^ "Canada to enhance its toolkit to address corporate wrongdoing" (Press release). Public Services and Procurement Canada. 27 March 2018.
  15. ^ "Remediation Agreements and Orders to Address Corporate Crime" (Press release). Department of Justice of Canada. 27 March 2018.
  16. ^ "Miazga v. Kvello Estate, 2009 SCC 51".
  17. ^ "Krieger v. Law Society of Alberta, 2002 SCC 65".
  18. ^ The Honourable Marc Rosenberg. "The Attorney General and the Prosecution Function on the Twenty-First Century". www.ontariocourts.ca.
  19. ^ Michael Spratt. "The real scandal in the SNC-Lavalin affair". Canadian lawyer magazine.
  20. ^ Forcese, Craig (9 February 2019). "L'Affaire SNC-Lavalin: The Public Law Principles".
  21. ^ a b "The Mandate of Public Prosecution Service". ppsc-sppc.gc.ca. Public Prosecution Service of Canada.
  22. ^ a b "Relationship between the Attorney General and the Director of Public Prosecutions". ppsc-sppc.gc.ca. Public Prosecution Service of Canada.
  23. ^ "An Act respecting the office of the Director of Public Prosecutions". Department of Justice of Canada.
  24. ^ "Submission to the DPA/Integrity Regime Consultation" (PDF) (Press release). 13 October 2017. Retrieved 4 March 2019.
  25. ^ Connolly, Amanda (7 February 2019). "Trudeau says report his office pressed former justice minister to drop SNC-Lavalin prosecution 'false'". Global News. Retrieved 4 March 2019.
  26. ^ "Jody Wilson-Raybould: Ex-minister increases pressure on Trudeau". BBC. 28 February 2019. Retrieved 4 March 2019.
  27. ^ "Prime Minister announces changes to the Ministry". 14 January 2019. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  28. ^ Lum, Zi-Ann (14 January 2019). "Jody Wilson-Raybould's Surprise Shuffle Isn't A Demotion, Trudeau Says". HuffPost. Retrieved 4 March 2019.
  29. ^ Harris, Kathleen (14 January 2019). "Wilson-Raybould moved to Veterans Affairs, Lametti named justice minister in Trudeau cabinet shuffle". CBC News. Retrieved 4 March 2019.
  30. ^ BBC (13 February 2019). "Canada minister Jody Wilson-Raybould resigns amid SNC-Lavalin affair". BBC News. Retrieved 13 February 2019.
  31. ^ Tasker, John Paul (8 February 2019). "Jody Wilson-Raybould says she's bound by 'solicitor-client privilege', won't comment on SNC-Lavalin scandal". CBC News. Retrieved 4 March 2019.
  32. ^ Tunney, Catharine; Zimonjic, Peter (12 February 2019). "Trudeau pushes back on SNC-Lavalin, says he was 'surprised and disappointed' by Wilson-Raybould's resignation". CBC News. Retrieved 4 March 2019.
  33. ^ Connolly, Amanda (12 February 2019). "Trudeau urged to condemn 'racist and sexist' attacks on Jody Wilson-Raybould amid SNC-Lavalin affair". Global News. Retrieved 5 March 2019.
  34. ^ National Post (21 February 2019), Michael Wernick speaks to justice committee, retrieved 21 February 2019
  35. ^ "No 'inappropriate pressure' on Jody Wilson-Raybould in SNC-Lavalin affair, top civil servant says - The Star". thestar.com.
  36. ^ a b c Tasker, John Paul (28 February 2019). "Key moments from Jody Wilson-Raybould's SNC-Lavalin testimony". CBC News.
  37. ^ a b c Harris, Kathleen (6 March 2019). "'Nothing inappropriate': Butts says SNC-Lavalin scandal blew up only after cabinet shuffle". CBC News. Retrieved 6 March 2019.
  38. ^ https://www.theglobeandmail.com/politics/article-liberal-mps-block-effort-to-immediately-invite-wilson-raybould-to/
  39. ^ Tasker, John Paul (11 February 2019). "Trudeau says he has 'confidence' in Wilson-Raybould as ethics commissioner probes PMO over SNC-Lavalin". CBC News.
  40. ^ May, Elizabeth (15 February 2019). "Elizabeth May: We need an independent inquiry into the Jody Wilson-Raybould/SNC-Lavalin affair". Ottawa Citizen. Retrieved 4 March 2019.
  41. ^ "Justin Trudeau Must Resign". Conservative Party of Canada.
  42. ^ "Scheer Calls on RCMP to Investigate Trudeau and SNC-Lavalin Affair". Conservative Party of Canada.
  43. ^ Serebrin, Jacob (27 February 2019). "Full statement: 'I and my staff always acted appropriately' regarding SNC-Lavalin: Trudeau". Montreal Gazette.
  44. ^ Toronto Star (7 March 2019). "Trudeau admits he asked Wilson-Raybould to 'revisit her decision' on SNC-Lavalin in September". Toronto Star.
  45. ^ National Post (7 March 2019). "Trudeau blames 'erosion of trust' for SNC-Lavalin controversy, does not apologize". National Post.
  46. ^ Ottawa Citizen (18 February 2019). "Full statement: Gerald Butts' resignation letter". Ottawa Citizen.
  47. ^ Harris, Kathleen (4 March 2019). "Jane Philpott resigns from cabinet, citing loss of 'confidence' over government's handling of SNC-Lavalin". CBC News.
  48. ^ BBC (4 March 2019). "Jane Philpott: Trudeau crisis grows as minister resigns". BBC News. Retrieved 4 March 2019.
  49. ^ MacCharles, Tonda; Campion-Smith, Bruce (4 March 2019). "Jane Philpott resigns from Trudeau cabinet over SNC-Lavalin affair". Toronto Star. Retrieved 4 March 2019.
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