As concern remains over the award of a contract to Canadian Company SNC-Lavalin Constructors Inc for the design of the Penal Hospital, a subsidiary of the foreign company was recently awarded a contract in Canada for military troop support.
The People’s Partnership Government has been working with Canadian authorities to determine if proper procedures were followed in the granting of the contract to SNC-Lavalin to build the planned $1 billion Penal Hospital.
While a contract was awarded to design the hospital, a final one to decide SNC-Lavalin’s eligibility to build the hospital has not yet been determined.
The company which has been banned for ten years by the World Bank from bidding on contracts funded by the World Bank was paid $2.2 million by Government to design the Penal Hospital which Minister of Housing Dr Roodal Moonilal is looking into.
However, on August 13, the Toronto Star reported: “A lucrative contract for Canadian troop support has been awarded to a joint venture company partly owned by a division of SNC-Lavalin Group that is banned from bidding on aid contracts by the World Bank.”
“Last week the federal public works department awarded a valued defence contract to SNC-Lavalin PAE to provide communications, equipment, food, water supply and other military logistics for Canadian troops operating overseas. The five-year Canadian Forces Contractor Augmentation Program (CANCAP) contract can be extended to ten years.”
The Toronto Star report pointed out that the CDN$400 million defence contract was awarded to the company although it is one of the corporations listed in the World Bank’s statement on companies “ineligible” for aid contracts.
“Firms or individuals who have been sanctioned by a development organisation, including the World Bank, for engaging in corrupt or fraudulent practices, will be ineligible to bid on projects funded by DFATD,” Nicolas Doire said in an email, the Toronto Star reported.
The report added: “The World Bank says the misconduct involved allegations of bribery schemes involving SNC-Lavalin Inc officials in Bangladesh. During their investigation, World Bank staff say they learned of alleged ‘misconduct’ by the company in a project in Cambodia.”