Connect with us

Opinion

UPDATED: SNC Lavalin – Just the Facts Ma’am

Published

10 minute read

Opinion by Cory Litzenberger

Let’s take emotion out of it. Let’s take a look at the legislation. While I am not a lawyer, I do interpret tax legislation for a living, and so I decided to take a closer look at the criminal legislation pertaining to the SNC-Lavalin scandal.

The relevant legislation is in 《parentheses》below, but here is the Coles notes:

FACT – in 2015 SNC was charged by the RCMP under Section 3 of the Corruption of Foreign Public Officials Act

《3 (1) Every person commits an offence who, in order to obtain or retain an advantage in the course of business, directly or indirectly gives, offers or agrees to give or offer a loan, reward, advantage or benefit of any kind to a foreign public official or to any person for the benefit of a foreign public official

(a) as consideration for an act or omission by the official in connection with the performance of the official’s duties or functions; or

(b) to induce the official to use his or her position to influence any acts or decisions of the foreign state or public international organization for which the official performs duties or functions.》

FACT – In 2015, the RCMP charged SNC-Lavalin, along with its international division, with corruption and fraud in relation with their business dealings in Libya. The RCMP said officials at the company attempted to bribe several public officials in the country, including dictator Moammar Gadhafi, as well as other businesses in Libya.

FACT – The prosecutor is allowed to enter into a remediation agreement under Section 715.32 of the Criminal Code of Canada , if ALL conditions are met under 715.32(1).

《715.32 (1) The prosecutor may enter into negotiations for a remediation agreement with an organization alleged to have committed an offence if the following conditions are met:

(a) the prosecutor is of the opinion that there is a reasonable prospect of conviction with respect to the offence;

(b) the prosecutor is of the opinion that the act or omission that forms the basis of the offence did not cause and was not likely to have caused serious bodily harm or death, or injury to national defence or national security, and was not committed for the benefit of, at the direction of, or in association with, a criminal organization or terrorist group;

(c) the prosecutor is of the opinion that negotiating the agreement is in the public interest and appropriate in the circumstances; and

(d) the Attorney General has consented to the negotiation of the agreement.》

FACT – for the prosecutor to evaluate their public interest opinion, they must consider subsection 715.32(2) in its entirety which includes many relevant pieces of information except when 715.32(3) overrides it

《 Factors to consider

715.32(2) For the purposes of paragraph (1)(c), the prosecutor must consider the following factors:

[(a) to (h)]; and

(i) any other factor that the prosecutor considers relevant.》

FACT – 715.32(3) says even with all those factors to consider, you can NOT factor in the national economic interest (ie: the jobs argument) if they were charged the way the RCMP charged them

《Factors not to consider

715.32(3) Despite paragraph (2)(i), if the organization is alleged to have committed an offence under section 3 or 4 of the Corruption of Foreign Public Officials Act, the prosecutor must not consider the national economic interest, the potential effect on relations with a state other than Canada or the identity of the organization or individual involved.》

CONCLUSION – the jobs argument is irrelevant under the law in these circumstances – The prosecution knows this – The former Attorney General knows this – and based on the provisions as written, the jobs argument for SNC does not meet the legal requirement for a remediation agreement.

For these reasons, I find in favour of the former Attorney General.
— — — —

Update: While being interviewed on the afternoon of March 7, 2019, I looked even closer at the legislation and caught something I didn’t realize on first glance when reading it.

Notice at the end of 715.32(1)(c) the word “and”.

While I said this means that all of the tests in (a) through (d) must be met, I neglected to say that this means no one person has the sole final decision. The prosecutor is mentioned in (a), (b), and (c); while the Attorney General is only mentioned in (d).

To put another way, this law is written so that it is not solely the decision of the Attorney General, nor the prosecutor. Rather, it requires both the Attorney General and the Prosecutor to agree to proceed with negotiations.

Similar to a scene in the movies where you see nuclear codes kept between two different military heads before proceeding with the launch, such is the wording of this provision.

This means that the Attorney General does not have the final decision and so any suggestion that she does is incorrect. The decision is a joint one with most of the leg work having to be done by the prosecutor, not the Attorney General.

So let me recap: I think it is quite simple, that a Remediation Agreement (aka Deferred Prosecution Agreement) cannot be considered under the “national economic interest” (jobs) argument based on what legislation the RCMP used for the charges.

If that’s the argument, then the answer is “no” and the repeated number of times asking for the former Attorney General to revisit it over a four month period for something that appears so black and white might be considered workplace harassment if I were to do such a thing to one of my colleagues.

So, since the economic argument is moot, what other argument is there?

We heard in testimony that the parties may have wanted the Attorney General to look at it from a stance that does not imply economic interest.

Ironically, “we need to win an election” may actually be legal as “any other factor that the prosecutor considers relevant” but then we would have to assume the prosecutor would have to be partisan, and that is highly not likely in my experience.

So we now know that there must be an agreement between the prosecutor and the Attorney General.

We also know that “economic interest” cannot be the reason under the law.

So, if the law is that clear on economic interest, why would the Attorney General be asked repeatedly for reconsideration, unless it was not “economic interest” they wanted her to consider?

For these additional reasons, I still find in favour of the former Attorney General

Update #2: On March 8, 2019, the Federal Court of Canada ruled in favour of the Public Prosecution Service on SNC Lavalin’s request for judicial review citing:

“The law is clear that prosecutorial discretion is not subject to judicial review, except for abuse of process.” – Federal Court of Canada Justice Kane

Then, on March 11, 2019, the Organisation for Economic Co-operation and Development (OECD) came to the same conclusion as my interpretation of the law regarding the intention of the 1999 agreement, and said:

“political factors such as a country’s national economic interest and the identity of the alleged perpetrators must not influence foreign bribery investigations and prosecutions.” – OECD

We now have confirmation that there is no legal way that a country’s national economic interest can be considered under the law.

For these additional reasons, jurisprudence about the authority of the Public Prosecution Service, and third party reports about the intentions of the 1999 agreement from the OECD, I still find in favour of the former Attorney General for a third time.

Click to listen to Red Deer Accountant Cory Litzenberger on Charles Adler Tonight

Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html

CEO | Director CGL Tax Professional Corporation With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: “People don’t pay me for my looks. My modeling career ended at birth.” More info: https://CGLtax.ca/Litzenberger-Cory.html

Follow Author

Aristotle Foundation

How Vimy Ridge Shaped Canada

Published on

The Battle of Vimy Ridge was a unifying moment for Canada, then a young country. The Aristotle Foundation’s Danny Randell explains what happened at Vimy in 1917, and why it still matters to Canada today.

About the Aristotle Foundation

The Aristotle Foundation for Public Policy is a new think tank that aims to renew civil, common-sense discourse in Canada. As an educational charity, we publish books, videos, fact sheets, studies, columns, interviews, and infographics.

Visit our website at www.aristotlefoundation.org for more of our content.

Continue Reading

Business

World Economic Forum Aims to Repair Relations with Schwab

Published on

Armstrong Economics

 By Martin Armstrong

The whistleblower has always been anonymous, and it remains very suspicious that the very organization he created would turn on him after receiving an anonymous letter that they admitted may not have been credible.

World Economic Forum founder Klaus Schwab stepped down from his chairman position at the organization on April 20, 2025, amid accusations of fraud. Our computer had forecast that the WEF would enter a declining trend with the 2024 ECM turning point. This staged coup happened about 37 years after the first Davos meeting (8.6 x 4.3). From our model’s perspective, this was right on time. Now, Schwab and the WEF are working to repair ties.

An anonymous whistleblower claimed that Klaus Schwab and his wife collaborated with USAID to steal tens of millions in funding. The whistleblower has always been anonymous, and it remains very suspicious that the very organization he created would turn on him after receiving an anonymous letter that they admitted may not have been credible. Something like this would never be acceptable in any court of law, especially if it’s anonymous. It would be the worst or the worst hearsay, where you cannot even point to who made the allegation.

Back in April, the WEF said its board unanimously supported the decision to initiate an independent investigation “following a whistleblower letter containing allegations against former Chairman Klaus Schwab. This decision was made after consultation with external legal counsel.”

Now, the WEF is attempting to repair its relationship with its founder ahead of the next Davos meeting. Bloomberg reported that the WEF would like to “normalize their relationship [with Klaus Schwab] in order to safeguard the forum and the legacy of the founder.”

Peter Brabeck-Letmathe has replaced Schwab for the time being, but is less of a commanding force. Schwab’s sudden departure has caused instability in the organization and its ongoing mission. Board members are concerned that support for the organization will begin to decline as this situation remains unresolved.

Davos is the Problem

The World Economic Forum’s annual revenue in 2024 was 440 million francs ($543 million), with the majority of proceeds coming from member companies and fees. Yet, the number of people registered to attend the 2025 Davos event is on par if not slightly exceeding the number of participants from the year prior.

WEF Schwab You Will Own Nothing

Schwab’s departure has damaged the Davos brand. There is a possibility that the organization is attempted to rebrand after Agenda 2030 failed. The WEF attempted to move away from its zero tolerance stance on ESG initiatives after they became widely unpopular among the big industry players and shifting governments. The brand has attempted to integrate the importance of digital transformation and AI to remain relevant as the tech gurus grow in power and popularity. Those who are familiar with Klaus Schwab know the phrase, “You will own nothing and be happy.” These words have been widely unpopular and caused a type of sinister chaos to surround the brand that was once respected as the high-brow institution of globalist elites.

European Central Bank President Christine Lagarde was slated to replace Schwab in 2027 when her term ends, and all reports claimed that he was prepared to remain in the chairman role for an additional two years to ensure Lagarde could take his place. What changed seemingly overnight that would cause the organization to discard Schwab before he was due to retire?

Schwab denies any misconduct and filed lawsuits against the whistleblowers, calling the accusations “calumnious” and “unfounded.” He believes “character assassination” was the premise of the claims.

WEC 2020 Arm v Schwab

I am no fan of Klaus Schwab, as everyone knows. I disagree with his theories from start to finish. Nevertheless, something doesn’t smell right here. This appears to be an internal coup, perhaps to distract attention from the question of alleged funds for the WEF from USAID, or to try to salvage the failed Agenda 2030. Perhaps they will claim that no misconduct had occurred since DOGE did not raise concerns or there is a possibility that those behind the internal coup are concerned that Schwab’s counter lawsuit could uncover new corruption. The investigation into Schwab has not concluded, but after only three months, the WEF would like to wrap it up. It appears that the WEF does not want to welcome Schwab back; rather, they would like to ensure an amicable resolution to maintain both the brand’s reputation as well as the founder’s.

Continue Reading

Trending

X