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SNC-Lavalin gets most of what it wanted in plea deal

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After Prime Minister Justin Trudeau‘s failed efforts to see SNC-Lavalin avoid prosecution led to him losing two key ministers, his edge in the polls and (almost) his party’s hold on government, the Quebec engineering firm at the centre of the controversy walked away today with a plea deal that looks a lot like what it asked the government for in the first place.

A judge on Thursday accepted the plea deal that a division of SNC-Lavalin Group Inc. struck with the office of the Director of Public Prosecutions (DPP). Under the agreement, the company pleaded guilty to one charge of fraud over $5,000 in relation to the company’s activities in Libya.

All other charges have been dropped.

“We are happy. The company is happy,” said SNC-Lavalin lawyer François Fontaine. “The fact that the charges are no longer pending over the head of the company is good. The uncertainty around that kind of proceeding is bad for business, is bad for the company.

“So we’re very happy that it’s now over. We are free to bid as normal. This guilty plea does not prevent construction, or any other entity of the group, to bid on public contracts.”

After SNC-Lavalin was hit with fraud and corruption charges over its actions in Libya between 2001 and 2011, officials from the Prime Minister’s Office spoke with then justice minister and attorney general Jody Wilson-Raybould, asking her to reconsider offering the firm a deferred prosecution agreement.

Under newly passed legislation, a deferred prosecution agreement would allow the company to avoid trial providing it paid hefty fines and continued to adhere to a number of conditions for a period of time.

Had the company been convicted in court of bribing Libyan officials — including Saadi Gadhafi, son of the late dictator Moammar Gadhafi — to get lucrative government contracts, it could have been blocked from competing for federal government contracts in Canada for a decade.

“I have long believed in the essential necessity of our judicial system operating as it should — based on the rule of law and prosecutorial independence, and without political interference or pressure,” Wilson-Raybould said today on Twitter.

“Ultimately, that system was able to do its work — as democracy and good governance requires — and an outcome was reached today. Accountability was achieved. The justice system did its work.”

 

Former health minister Jane Philpott and former attorney general of Canada Jody Wilson-Raybould both resigned from cabinet over the SNC-Lavalin affair. (Adrian Wyld/Canadian Press)

 

In early 2019, media reports said that Wilson-Raybould felt she was being improperly pressured by Trudeau’s senior adviser and the clerk of the Privy Council to ask the DPP to consider offering SNC-Lavalin a deferred prosecution agreement.

Wilson-Raybould refused, saying she believed the prosecution service should be free from political influence in its decisions. Trudeau later said he did not direct the attorney general to reverse a decision — that he just wanted her to reconsider the deferred prosecution agreement option.

Months of political controversy followed, resulting in Wilson-Raybould resigning from cabinet before being tossed out of the Liberal caucus along with her ally in the public debate that ensued: former health and Indigenous services minister Jane Philpott.

Mario Dion, the conflict of interest and ethics commissioner, released a report in August that found Trudeau had violated the Conflict of Interest Act.

‘You don’t get do-overs in politics’

The allegation that Trudeau improperly tried to influence the attorney general significantly depressed the prime minister’s voter support.

Trudeau defended his actions by saying that he was trying to prevent the loss of jobs in Quebec, but the damage to the prime minister’s reputation had been done — just as federal political parties were readying themselves for a fall election.

In its year-end interview with the prime minister, the Canadian Press asked Trudeau if his actions on the SNC-Lavalin file were worth the political cost.

“As we look back over the past year on this issue, there are things that we could have, should have, would have done differently had we known,” he said.

“You don’t get do-overs in politics. You only do the best you can to protect jobs, to respect the independence of the judiciary, and that’s exactly what we did every step of the way.”

Prime Minister Justin Trudeau spoke to the Canadian Press today in Ottawa 0:25

The deal SNC-Lavalin struck to avoid trial may not have been a deferred prosecution agreement, but it resulted in almost the same outcome for the company.

All other charges were dropped in exchange for a guilty plea on one charge of fraud over $5,000, plus an agreement to pay $280 million in fines and comply with a probation order for three years.

“So far I’m happy, because that’s what we were asking for,” said Quebec Premier François Legault. “SNC-Lavalin’s paying $280 million, but it’s only for a part of the company. The rest of the company will be able to continue to have access to public contracts.”

Wilson-Raybould’s successor, Justice Minister David Lametti, said he had no part in the deal.

“Yesterday, I became aware that the Public Prosecution Service of Canada and counsel for SNC-Lavalin had reached an agreement to resolve the ongoing criminal proceedings against the company and its affiliates,” a statement from Lametti’s office said.

“This decision was made independently by the PPSC, as part of their responsibility to continually assess and determine the appropriate path for cases under their jurisdiction. Canadians can have confidence that our judicial and legal systems are working as they should.”

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Review finds no case for formal probe of Beijing’s activities under elections law

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OTTAWA – The federal agency that investigates election infractions found insufficient evidence to support suggestions Beijing wielded undue influence against the Conservatives in the Vancouver area during the 2021 general election.

The Commissioner of Canada Elections’ recently completed review of the lingering issue was tabled Tuesday at a federal inquiry into foreign interference.

The review focused on the unsuccessful campaign of Conservative candidate Kenny Chiu in the riding of Steveston-Richmond East and the party’s larger efforts in the Vancouver area.

It says the evidence uncovered did not trigger the threshold to initiate a formal investigation under the Canada Elections Act.

Investigators therefore recommended that the review be concluded.

A summary of the review results was shared with the Canadian Security Intelligence Service and the RCMP. The review says both agencies indicated the election commissioner’s findings were consistent with their own understanding of the situation.

During the exercise, the commissioner’s investigators met with Chinese Canadian residents of Chiu’s riding and surrounding ones.

They were told of an extensive network of Chinese Canadian associations, businesses and media organizations that offers the diaspora a lifestyle that mirrors that of China in many ways.

“Further, this diaspora has continuing and extensive commercial, social and familial relations with China,” the review says.

Some interviewees reported that this “has created aspects of a parallel society involving many Chinese Canadians in the Lower Mainland area, which includes concerted support, direction and control by individuals from or involved with China’s Vancouver consulate and the United Front Work Department (UFWD) in China.”

Investigators were also made aware of members of three Chinese Canadian associations, as well as others, who were alleged to have used their positions to influence the choice of Chinese Canadian voters during the 2021 election in a direction favourable to the interests of Beijing, the review says.

These efforts were sparked by elements of the Conservative party’s election platform and by actions and statements by Chiu “that were leveraged to bolster claims that both the platform and Chiu were anti-China and were encouraging anti-Chinese discrimination and racism.”

These messages were amplified through repetition in social media, chat groups and posts, as well as in Chinese in online, print and radio media throughout the Vancouver area.

Upon examination, the messages “were found to not be in contravention” of the Canada Elections Act, says the review, citing the Supreme Court of Canada’s position that the concept of uninhibited speech permeates all truly democratic societies and institutions.

The review says the effectiveness of the anti-Conservative, anti-Chiu campaigns was enhanced by circumstances “unique to the Chinese diaspora and the assertive nature of Chinese government interests.”

It notes the election was prefaced by statements from China’s ambassador to Canada and the Vancouver consul general as well as articles published or broadcast in Beijing-controlled Chinese Canadian media entities.

“According to Chinese Canadian interview subjects, this invoked a widespread fear amongst electors, described as a fear of retributive measures from Chinese authorities should a (Conservative) government be elected.”

This included the possibility that Chinese authorities could interfere with travel to and from China, as well as measures being taken against family members or business interests in China, the review says.

“Several Chinese Canadian interview subjects were of the view that Chinese authorities could exercise such retributive measures, and that this fear was most acute with Chinese Canadian electors from mainland China. One said ‘everybody understands’ the need to only say nice things about China.”

However, no interview subject was willing to name electors who were directly affected by the anti-Tory campaign, nor community leaders who claimed to speak on a voter’s behalf.

Several weeks of public inquiry hearings will focus on the capacity of federal agencies to detect, deter and counter foreign meddling.

In other testimony Tuesday, Conservative MP Garnett Genuis told the inquiry that parliamentarians who were targeted by Chinese hackers could have taken immediate protective steps if they had been informed sooner.

It emerged earlier this year that in 2021 some MPs and senators faced cyberattacks from the hackers because of their involvement with the Inter-Parliamentary Alliance on China, which pushes for accountability from Beijing.

In 2022, U.S. authorities apparently informed the Canadian government of the attacks, and it in turn advised parliamentary IT officials — but not individual MPs.

Genuis, a Canadian co-chair of the inter-parliamentary alliance, told the inquiry Tuesday that it remains mysterious to him why he wasn’t informed about the attacks sooner.

Liberal MP John McKay, also a Canadian co-chair of the alliance, said there should be a clear protocol for advising parliamentarians of cyberthreats.

This report by The Canadian Press was first published Sept. 17, 2024.

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NDP beat Conservatives in federal byelection in Winnipeg

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WINNIPEG – The federal New Democrats have kept a longtime stronghold in the Elmwood-Transcona riding in Winnipeg.

The NDP’s Leila Dance won a close battle over Conservative candidate Colin Reynolds, and says the community has spoken in favour of priorities such as health care and the cost of living.

Elmwood-Transcona has elected a New Democrat in every election except one since the riding was formed in 1988.

The seat became open after three-term member of Parliament Daniel Blaikie resigned in March to take a job with the Manitoba government.

A political analyst the NDP is likely relieved to have kept the seat in what has been one of their strongest urban areas.

Christopher Adams, an adjunct professor of political studies at the University of Manitoba, says NDP Leader Jagmeet Singh worked hard to keep the seat in a tight race.

“He made a number of visits to Winnipeg, so if they had lost this riding it would have been disastrous for the NDP,” Adams said.

The strong Conservative showing should put wind in that party’s sails, Adams added, as their percentage of the popular vote in Elmwood-Transcona jumped sharply from the 2021 election.

“Even though the Conservatives lost this (byelection), they should walk away from it feeling pretty good.”

Dance told reporters Monday night she wants to focus on issues such as the cost of living while working in Ottawa.

“We used to be able to buy a cart of groceries for a hundred dollars and now it’s two small bags. That is something that will affect everyone in this riding,” Dance said.

Liberal candidate Ian MacIntyre placed a distant third,

This report by The Canadian Press was first published Sept. 16, 2024

The Canadian Press. All rights reserved.

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Trudeau says ‘all sorts of reflections’ for Liberals after loss of second stronghold

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OTTAWA – Prime Minister Justin Trudeau say the Liberals have “all sorts of reflections” to make after losing a second stronghold in a byelection in Montreal Monday night.

His comments come as the Liberal cabinet gathers for its first regularly scheduled meeting of the fall sitting of Parliament, which began Monday.

Trudeau’s Liberals were hopeful they could retain the Montreal riding of LaSalle—Émard—Verdun, but those hopes were dashed after the Bloc Québécois won it in an extremely tight three-way race with the NDP.

Louis-Philippe Sauvé, an administrator at the Institute for Research in Contemporary Economics, beat Liberal candidate Laura Palestini by less than 250 votes. The NDP finished about 600 votes back of the winner.

It is the second time in three months that Trudeau’s party lost a stronghold in a byelection. In June, the Conservatives defeated the Liberals narrowly in Toronto-St. Paul’s.

The Liberals won every seat in Toronto and almost every seat on the Island of Montreal in the last election, and losing a seat in both places has laid bare just how low the party has fallen in the polls.

“Obviously, it would have been nicer to be able to win and hold (the Montreal riding), but there’s more work to do and we’re going to stay focused on doing it,” Trudeau told reporters ahead of this morning’s cabinet meeting.

When asked what went wrong for his party, Trudeau responded “I think there’s all sorts of reflections to take on that.”

In French, he would not say if this result puts his leadership in question, instead saying his team has lots of work to do.

Bloc leader Yves-François Blanchet will hold a press conference this morning, but has already said the results are significant for his party.

“The victory is historic and all of Quebec will speak with a stronger voice in Ottawa,” Blanchet wrote on X, shortly after the winner was declared.

NDP Leader Jagmeet Singh and his party had hoped to ride to a win in Montreal on the popularity of their candidate, city councillor Craig Sauvé, and use it to further their goal of replacing the Liberals as the chief alternative to the Conservatives.

The NDP did hold on to a seat in Winnipeg in a tight race with the Conservatives, but the results in Elmwood-Transcona Monday were far tighter than in the last several elections. NDP candidate Leila Dance defeated Conservative Colin Reynolds by about 1,200 votes.

Singh called it a “big victory.”

“Our movement is growing — and we’re going to keep working for Canadians and building that movement to stop Conservative cuts before they start,” he said on social media.

“Big corporations have had their governments. It’s the people’s time.”

New Democrats recently pulled out of their political pact with the government in a bid to distance themselves from the Liberals, making the prospects of a snap election far more likely.

Trudeau attempted to calm his caucus at their fall retreat in Nanaimo, B.C, last week, and brought former Bank of Canada governor Mark Carney on as an economic adviser in a bid to shore up some credibility with voters.

The latest byelection loss will put more pressure on him as leader, with many polls suggesting voter anger is more directed at Trudeau himself than at Liberal policies.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.

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