Genivar confirms inquiry allegations
MONTREAL - Engineering firm Genivar confirmed Monday that it engaged in "inappropriate conduct" in the financing of political parties in Quebec and the awarding of municipal contracts as outlined in recent allegations to the province's corruption inquiry.
The Montreal-based company says an unnamed person is on a leave of absence until an internal review is completed.
In a statement, Genivar (TSX:GNV) says it has new information that confirms allegations made by a witness at the Charbonneau commission.
The firm established a special committee of the board last September to review any allegations of illegal conduct, including those made at the commission.
It says the review process is ongoing and no "definitive conclusion can yet be drawn."
Executive chairman Christopher Cole says in a news release that Genivar doesn't tolerate any improper business practices and is committed to ethical business conduct.
CEO Pierre Shoiry adds that the company supports the commission's work and welcomes any government move to improve the awarding of public contracts that will restore the image of consulting engineers in the province.
Genivar says no adjustment or restatement of its past financial statements is required.
As a result of the US$438-million acquisition of London-based WSP Group, municipal work in the Montreal region now accounts for about one per cent of its consolidated revenues while Quebec's public sector contributes about eight per cent.
On the Toronto Stock Exchange, Genivar's shares lost 55 cents, or 2.33 per cent, at $23.05 in morning trading.