SNC Lavalin and India caught up in corruption scandal

Missing money - no promised Cancer Hospital - and one hydro-electric development has SNC Lavalin and 2 former Ministers responsible for power supply in Kerala - India under investigation by India's Central Bureau of Investigation.

Below is part of the story in the South Asian Post:

According to Indian government documents, the scandal has its roots in a contract for the renovation of three hydro-electric power stations that was signed by the Kerala state government and SNC Lavalin in October 1996. The $85 million contract was to upgrade 12 generating machines at three powers stations in the Periyar river basin whose output was much below their design capacities.

A report by India’s Comptroller and Auditor General’s said that excess costs equivalent to some $70 million was incurred during the progress of the work. The auditors also found that the State of Kerala did not receive monies from a grant that Lavalin agreed to arrange at the time the contract was signed. The money was intended to fund the establishment of a cancer centre as part of the deal.

“But 10 years later, there is no hospital and no one knows where the rest (of the money) went,” the Indian Express paper said.

The Auditor-General in his report also pointed out serious breach of norms, undue haste, and complicity in the deal.

We should all keep on eye on this situation and what the outcome is for SNC Lavalin.

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