SNC-Lavalin Shakes Up Management Ranks

The company had previously appointed Robert Card as CEO to replace outgoing exec Pierre Duhaime, who resigned and was subsequently charged with fraud.

Last week, Card appointed Neil Bruce to a post as president of SNC-Lavalin’s new resources and environment group. The new group will include SNC-Lavalin’s mining operations, hydrocarbons and chemicals division, and water and environment-based businesses.

Bruce, previously the COO of UK engineering firm AMEC, will lead the new group, which is expected to bring in some 40 per cent of the company’s revenue, making it the largest contributor to SNC-Lavalin’s income.

He replaces two outgoing executives, who left their posts heading SNC-Lavalin’s mining and metallurgy and hydrocarbons and chemicals divisions.

Christian Jacqui, previously the executive vice president for the company’s European operations, has also earned a new title, being named vice president of global operations. Both Bruce and Jacqui will work out of the UK.

Meanwhile, Scott Thon, president of SNC subsidiary AltaLink, will take over for SNC-Lavalin executive vice president of power operations Patrick Lamarre, who has resigned.

“These changes represent part of our ongoing effort to further strengthen the company’s management structure and extend its scope,” Card said in a statement.

The moves come as the company has struggled in the wake of allegations of wrongdoing, which include accusations that the company used forged documents to secure work on the $1.3 billion McGill University Health Centre mega-hospital in Montreal.

The company also faces questions surrounding $56 million in improper payments, which are believed to have been made to help the company secure contracts overseas.

The company is under investigation for the charges, which have not been proven in court.

SNC-Lavalin’s struggles have been evident in a sharp decrease in investor confidence, with shares falling some 20 per cent since the allegations came to light.

By Richard Barnes