Canada – Bombardier Asks Export Development Canada To Select Investigator To Review Overseas Practices

Bombardier asks Export Development Canada to select investigator to review overseas practices

Bombardier Inc. is hiring an independent organization to review its procedures for doing business in foreign markets in the wake of allegations that company officials used corruption and collusion to win a rail contract in Azerbaijan.

The Canadian airplane and train maker said in its second-quarter financial statements that it will work with a third-party group chosen by Export Development Canada “to evaluate our existing due diligence processes.” EDC helps Canadian exporters through insurance and financing and has been involved in billions of dollars of Bombardier contracts in overseas markets.

A World Bank audit in November, which was revealed by The Globe and Mail in May, alleged Bombardier colluded with senior officials at Azerbaijan Railways to win a 2013 contract worth US$339-million to install rail-signalling equipment in the country. The deal was 85 per cent financed by the World Bank.

The audit could lead to the Montreal-based company being blacklisted from projects funded by the international financial institution.

The World Bank alleged that Bombardier colluded with Azerbaijan Railways senior officials as far back as 2010 – three years before the contract was awarded – to secure the deal. A local company called Trans-Signal-Rabita was set up and it “did not have an office, employees, or accounting records” until it was awarded the contract in 2013, according to the audit, which is still continuing.

Investigators also said that Bombardier engaged in other conflicts of interest. The audit said that Bombardier was made aware in advance of the project’s budget and priced its bid to fit that number exactly; it paid bills for two Azerbaijan Railways officials to stay near the headquarters of its rail division, Bombardier Transportation, in Berlin; and it transferred money to two shell companies controlled by prominent figures in Russia’s rail industry, who in turn used their influence to ensure Bombardier won the contract in Azerbaijan.- Globe and Mail

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Sounds a lot like the SNC Lavalin scandal.  I wonder if  Canadian federal prosecutors can go after Bombardier?  Were bribes paid?

The audit could lead to the Montreal-based company being blacklisted from projects funded by the international financial institution.

Yup…..I am sure this can be blamed on Doug Ford’s government somehow.

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