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Th e Po l i t i cal Po w e r C ut
SNC Lavalin
Montreal-based company, founded in 1911
Engineering services, project
management, construction, construction management,
procurement and operations and maintenance
Largest engineering firm in Canada and with offices in
over 50 countries
Ranked among the top engineering design firms in the
world & $ 10 Billion in Revenues.
Kerala Connection
Kerala Govt gave contract to SNC Lavlin towards the
renovation of hydropower stations in Idukki district
The contract landed SNC Lavlin in trouble
Global tenders were not invited before entering into the final agreement.
The delegation overlooked the fact that Lavalin was only a consultant and not
the manufacturer of the equipment.
The Contracts were signed in haste, without ascertaining the reasonableness of
prices quoted.
When Lavalin was 'promoted' from consultant to contractor for supply and
installation, the consultancy charges for services rendered irrelevant were not
excluded from the total consultancy charges.
MoU on Malabar Cancer Centre was not executed
The Result
SNC-Lavalin in 1995 which resulted in an alleged net loss to the
Indian exchequer of 375 Crores
The CAG found that the Government did not receive 90 crores out
of the grant of 100 crores that was promised for the Malabar
Cancer Centre
National Hydroelectric Power Corporation Limited (NHEPCL)
conducted a study to justify the prices quoted by Lavalin, and they
concluded in that study in view of the grant to the proposed
Malabar Cancer Centre (MCC), the purchase of Canadian
equipment and accessories could be considered favourably.
Thank you
Presented by:
Group - 5
Nithin Paul Cherian
Nandita Menon
Mridul Vijay
Midhun Joy
Mathew Sanjay
Reference
https://en.wikipedia.org/wiki/SNCLavalin_Kerala_hydroelectric_scandal
http://indianexpress.com/tag/snc-lavalincorruption-case/
http://www.snclavalin.com/en/about-us/
http://timesofindia.indiatimes.com/city/kochi/SN
C-Lavalin-corruption-case-returns-to-hauntPinarayi-Vijayan/articleshow/52335300.cms