Kerala scam accused Canadian company under scanner at home

 Toronto, March 12 (IANS) Canada's SNC-Lavalin company, that was at the centre of a headline-grabbing bribery scandal in Kerala, is now under scanner at home for allegedly overcharging in government building maintenance.

Canadian Public Works Minister Rona Ambrose Thursday ordered an independent auditor to review a building maintenance contract given to SNC-Lavalin after allegations that the company charged $1,000 to install just a doorbell and $2,000 to buy two plants. The Montreal-based company has a $6-billion, multi-year contract to manage 320 Canadian government buildings.

Making this announcement in parliament, the minister said, "Like all Canadians, we find these expenses extravagant.
"I asked my deputy minister to review these expenses to ensure that taxpayers got value for money. An independent third party will be named to carry out that task.''

The investigations follow a report in the La Presse newspaper alleging excessive charging by SNC-Lavalin.

Responding to the allegations and the probe order, SNC-Lavalin said it is disappointed "over an article published in La Presse on March 10, 2010 concerning SNC-Lavalin Operations and Maintenance's federal building management contract.

"In effect, the author of the article chose to ignore many important facts which were explained to him. If they had been included in the article, they would have clearly demonstrated that SNC-Lavalin's rates are absolutely consistent with the going market price for these types of services.''

Leslie Quinton, vice-president for global corporate communications at SNC-Lavalin, said, "We go through over 500 audits a year for this one contract and are completely at ease in sharing this information since we believe in total transparency and good governance.''

SNC-Lavalin claimed that it is "proud to have realized substantial savings of about $50 million annually for the client (government) since the contract was awarded following a call for tenders for this property management contract for 320 federal buildings. Moreover, SNC-Lavalin's Operations and Maintenance (O&M) division has also reduced energy costs for these buildings by $2.1 million annually.''

In a chargesheet filed in India last June, the Central Bureau of Investigation (CBI) had named the Montreal-based company along with Kerala CPM secretary Pinarai Vijayan and others in the bribery scandal said to involve about Rs 300 crore. The chargesheet said the Canadian company was wrongfully given contracts for renovation of three power projects in 1997 when Vijayan was the electricity minister of Kerala. The company had denied any wrongdoing.