What Do CN Railway and SNC-Lavalin Have in Common?

If you answered, “They both have head offices in Montreal, Quebec”, you would be correct.

But the real answer is Claude Mongeau. Mr. Mongeau is currently President and CEO of CN Railway and has also been a director of the SNC-Lavalin Board since 2003 (Financial Post).

SNC-Lavalin is in the midst of an international corruption probe, involving allegations of fraud, money laundering and bribery against senior SNC-Lavalin executive members. Corruption probe investigations are being conducted by the Royal Canadian Mounted Police, World Bank, Switzerland, Bangladesh, and others in India, Tunisia and Mexico. Several lawsuits have been filed against SNC-Lavalin by investors who allege that the company provided false and misleading information to investors and engaged in illegal activities in Libya (Montreal Gazette, Globe and Mail). Another class action lawsuit claims that SNC’s misrepresentations caused the price of SNC’s securities to become inflated and that persons who acquired SNC securities suffered damage when the truth was revealed to the investing public (Sacramento Bee).

According to the Financial Post, Mr. Mongeau also became a director of Nortel Networks Corporation and Nortel Networks Limited in 2006 but resigned 7 months after these 2 companies and other subsidiaries initiated creditor protection proceedings in Canada in 2009. Mr. Mongeau was also director of 360networks Corporation prior to the corporation filing for creditor protection on June 28, 2001. Mr. Mongeau resigned as a director of 360networks effective June 28, 2001.

~ by railroaded on July 28, 2012.

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