Source: Reuters
* Kidnapped engineer was working for SNC-Lavalin
* Employee was seized in Islamist militant stronghold
* Firm says local authorities working on man's release
(Adds share price in paragraph 10)
By Lamine Chikhi
ALGIERS, Jan 6 (Reuters) - Armed insurgents in Algeria have kidnapped an Algerian engineer working for Canadian construction firm SNC-Lavalin
Two Algerian newspapers reported on Wednesday that the man, who has not been identified, was seized by a group of armed men in the Bouira region, a stronghold of al Qaeda-linked militants about 150 km (90 miles) southeast of the Algerian capital.
The newspapers said the man had been working on a project to build a water treatment plant in the region and that he was seized on his way to work. They said security forces had launched an operation to find him.
"There is confirmation of an engineer being kidnapped in Algeria on Sunday morning," Leslie Quinton, SNC-Lavalin's Vice-President for Global Corporate Communications, said in an email sent to Reuters.
The company said coordination of the engineer's release was being overseen by local authorities.
"We obviously hope for him and his family that he is returned safely home as soon as possible," said Quinton.
SNC-Lavalin intended to remain in Algeria and the firm had taken steps to ensure the safety of its other staff in the region, Quinton said.
Insurgents operating under the name al Qaeda in the Islamic Maghreb carry out sporadic bombings and kidnappings in Algeria, though the level of violence has subsided dramatically in the past few years.
The group has killed hostages, including foreigners, but security analysts say in most kidnapping cases the insurgents are seeking ransom payments and will be open to negotiations.
There was little movement on SNC-Lavalin's share price. The company's shares were down 2 Canadian cents at C$53.09 on the Toronto stock exchange on Wednesday. The stock has gained about 39 percent over the past 12 months.
The firm is one of the biggest foreign players in Algeria's infrastructure sector. Its projects include water desalination plants, gas treatment facilities and housing construction.
Seven Algerian police who were killed in an insurgent attack in October last year were part of a unit escorting private security contractors working for the Canadian company, local media reported at the time. (Additional reporting by Susan Taylor in Ottawa; Writing by Christian Lowe; editing by Jon Boyle) =============== Ex-spy watchdog reportedly under microscope as anti-corruption squad raids hospital office, probes SNC-Lavalin contract Brian Hutchinson | Sep 20, 2012 12:49 AM ET | Last Updated: Sep 20, 2012 1:05 AM ET More from Brian Hutchinson | @hutchwriter . John Kenney / Postmedia NewsDr. Arthur Porter, left, chats with Riadh Ben Aissa, then an executive vice-president of SNV-Lavalin, at the June 2010 groundbreaking for the McGill University Health Centre in Montreal. Porter has since resigned as the hospital's executive director; Aissa was arrested in Switzerland in April over allegations of corrupt practices in Africa, where SNC-Lavalin has other projects.. Twitter Google+ LinkedIn Email Comments More . When Quebec’s anti-corruption police squad raided the McGill University Health Centre’s (MUHC’s) downtown Montreal headquarters on Tuesday, looking for evidence of alleged wrongdoing in a public-private partnership contract awarded to a consortium led by SNC Lavalin Group Inc., they might have peeked inside a large corner suite on the 14th floor. The space was recently occupied by Arthur Porter, the MUHC’s director-general until business controversies and questions about his commitment to routine administrative duties exploded late last year. MUHC is one of Canada’s largest public health care providers with almost 12,000 employees. The SNC-Lavalin consortium is building the MUHC’s new $1.3-billion hospital in Montreal’s west side and will help operate the facility for decades, according to the terms of a deal it finalized in 2010, during Dr. Porter’s tenure. Related Canada’s top spy watchdog resigns following National Post revelations Ex-SNC-Lavalin executive with Gaddafi ties arrested in Switzerland on fraud charges The unbelievable life of Ari Ben-Menashe McGill University Health Centre forms special committee to oversee departure of Arthur Porter Allen McInnis / Postmedia News file Dr. Arthur Porter gives the media a tour in October 2007 of model rooms for the MUHC's new "super hospital.". “Investigators have detected something fishy in the way the $1.3-billion contract was awarded that could shake the MUHC’s very foundation,” Montreal’s Gazette declared Wednesday. According to an unconfirmed report from Montreal’s Le Devoir newspaper, police are scrutinizing Dr. Porter himself. Investigators have detected something fishy in the way the $1.3-billion contract was awarded . Also noted was the fact that SNC-Lavalin’s original point man for the MUHC hospital project was none other than Riadh Ben Aissa, who led his company’s construction division until his arrest in Switzerland in April. Mr. Aissa faces allegations of corrupt practices in Africa, where SNC-Lavalin has other projects. He was photographed with Dr. Porter at a ground-breaking ceremony at the new MUHC hospital site in June 2010. The project has since encountered construction delays and other problems. Dr. Porter has not been accused of any wrongdoing. He is not charged with any crime. He wasn’t responding to emails or conducting interviews following Tuesday’s police raid. An inveterate networker with corporate and financial interests all over the world, Dr. Porter is now a hard one to track down. He wasn’t always so cloistered. He cheerfully welcomed me into his MUHC office last year. The walls were lined with photographs of Dr. Porter meeting with foreign dignitaries and politicians, including George W. Bush and Bill Clinton. I think I’m good at perhaps maybe running things, you know, managing time and managing motion . At the time, Dr. Porter still enjoyed many roles: MUHC boss; chairman of Canada’s Security Intelligence Review Committee, where he had access to all secrets collected by CSIS, Canada’s spy agency; “Ambassador Plenipotentiary” for his native country, Sierra Leone; chairman of a mysterious company called Africa Infrastructure Group (AIG); and a member of Air Canada’s well-compensated board of directors. On and on. How could a relatively obscure oncologist and hospital administrator from poverty-stricken Sierra Leone have achieved such remarkable success in his adopted countries abroad, hobnobbing with presidents and prime ministers, conducting all manner of public and private business in Canada, the United States, Europe and the developing world? The Government of Canada has certainly never explained why it handpicked Dr. Porter to oversee Canada’s spy agency. “I think I’m good at perhaps maybe running things,” Dr. Porter replied. “You know, managing time and managing motion… Maybe [because] I also have lived in different countries and, so, I understand how others feel.” Christinne Muschi for National PostAri Ben-Menashe, an international consultant who often serves as a middleman between Russia and despotic African regimes, entered into an agreement with Arthur Porter that saw Porter wire $200,000 in personal funds to a U.S. bank account controlled by Ben-Menashe, who in return pledged to secure for Porter a $120-million “grant” from Russia that would ultimately be spent on various infrastructure projects Porter said he had proposed for Sierra Leone. The deal fell apart. . In 2010, Dr. Porter entered into a dubious business agreement with Ari Ben-Menashe, a notorious international consultant who often serves as a middleman between Russia and despotic African regimes. The pair signed an agreement that saw Dr. Porter wire $200,000 in personal funds to a U.S. bank account controlled by Mr. Ben-Menashe, who in return pledged to secure for Dr. Porter a $120-million “grant” from Russia. The money would be channelled to Dr. Porter’s private company, AIG, and would eventually be spent on various infrastructure projects Dr. Porter said he had proposed for Sierra Leone. The deal fell apart. Each man claims the other failed to live up to the bargain. Dr. Porter’s money was returned to him; it’s still unclear whether he ever disclosed his failed deal to Canada’s Privy Council, as required, or to the MUHC board. The National Post also learned that Dr. Porter had offered to Conservative Senator David Angus, chairman of the MUHC board, a job as honorary consul for Sierra Leone, a blatant conflict of interest, according to national security experts. John Mahoney / Postmedia News fileAn aerial view of the construction site for MUHC's "super hospital," taken in May.. In November, Dr. Porter’s curious dealings were exposed. He quickly offered his resignation as Canada’s spy watchdog; Prime Minister Stephen Harper immediately accepted. In December, Dr. Porter resigned as MUHC executive director, thanks to concerns raised about his many outside business interests. Similar worries were expressed when Dr. Porter served as chief executive officer of the Detroit Medical Center, the largest health system in Michigan; it hit hard financial times and was eventually sold. Dr. Porter left Detroit amidst controversy in 2004 and moved to Montreal. He advised the company that he did not wish to stand for re-election this year . Earlier this year, Dr. Porter also quit Air Canada’s board. He “advised the company that he did not wish to stand for re-election this year,” says an Air Canada spokesman. “We have no comment to provide on Mr. Porter’s decision.” He still serves as a director of various mining companies and remains involved with private cancer clinics in the Bahamas, where his wife and children have lived for years. He has also joined a Toronto-based executive search company, but he wasn’t available Wednesday. “He’s rarely in the office,” a company official said. “His schedule is extremely busy.” National Post • Email: bhutchinson@nationalpost.com | Twitter: hutchwriter ==================== Top News SNC-Lavalin ex-CEO arrested in widening scandal Wed, Nov 28 15:02 PM EST By Nicole Mordant (Reuters) - In the latest twist in an ethics scandal at Canada's biggest engineering firm, the former chief executive of SNC-Lavalin Group (SNC.TO) was arrested on Wednesday on three fraud-related charges, sending the company's stock down 2 percent. Pierre Duhaime, who resigned from SNC in March, was arrested at his home by the province of Quebec's anti-corruption squad on charges of fraud, conspiracy to commit fraud and use of false documents, said Anne-Frédérick Laurence, a spokeswoman for Unite Permanente Anticorruption Quebec, a provincial police unit. "He was arrested this morning and he will be able to go with a promise to collaborate," she said by telephone from Montreal, the largest city in the mainly French-speaking province. Laurence would not comment further on the nature of the charges. Duhaime's arrest is the latest blow for the 101-year-old company, which is still reeling from an internal investigation's discovery earlier this year that $56 million in funds had gone missing, paid to unknown agents on projects that did not exist. Duhaime quit after it came to light that he signed off on the mystery payments. Montreal-based SNC, which is one of the world's biggest engineering groups, said it had been informed of Duhaime's arrest but that it was unable to comment further. "As we have stated repeatedly, SNC-Lavalin has and will continue to cooperate fully with all authorities who request our assistance," the company said in an emailed statement. SNC's shares were down 2.25 percent at C$39.99 on the Toronto Stock Exchange on Wednesday afternoon. The stock is down 20 percent since the start of the year. WIDENING ETHICS SCANDAL Earlier this week, SNC's former head of construction, Riadh Ben Aissa, was charged in Switzerland on allegations of money laundering and corruption. He had been arrested in April. Media reports revealed Swiss police are investigating $139 million in payments to a Swiss bank account tied to large construction contracts in Libya. Those payments are unrelated to the $56 million disclosed by SNC's investigation. Even so, SNC had said in March that Ben Aissa, who left the company in February, may have "direct and significant" knowledge of the missing $56 million. Quebec's anti-corruption squad said in a statement on Wednesday that Ben Aissa faces the same charges as Duhaime and that it was working with international authorities. Tunisian-Canadian Ben Aissa was a key link between SNC and the former Libyan regime of Muammar Gaddafi. Before the fall of Gaddafi, SNC had several large projects on the go in Libya, including building a prison. Separately, Canadian police are also investigating bribery allegations against SNC executives in connection with a $1.2 billion bridge project in Bangladesh. The World Bank has suspended its loan for the development and temporarily banned an SNC subsidiary from bidding on its contracts in the country. SNC said earlier this year it had turned over the findings of its internal investigation to Canadian police. SNC's new CEO, Robert Card, a former long-time executive at U.S. engineering and construction company CH2M Hill Cos Ltd, took the reins at SNC on October 1 vowing zero tolerance for unethical behavior. ($1=$0.99 Canadian) (Additional reporting By Julie Gordon in Toronto; Editing by Peter Galloway) ====================
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