MONTREAL, QUEBEC--(Marketwire - Feb. 11, 2013) -
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART OUTSIDE CANADA OR TO ANY PERSON LOCATED OR RESIDENT OUTSIDE CANADA OR TO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
GENIVAR Inc. (TSX:GNV) ("GENIVAR" or the "Company") hereby provides an update on allegations made at the Charbonneau Commission.
As mentioned in GENIVAR's Management Discussion and Analysis for the third quarter ended September 30, 2012, a Special Committee of the Board of Directors was formed to review any internal or external allegation of illegal conduct, including any allegation made in the context of the Charbonneau Commission.
Recently, allegations were made by a witness at the Charbonneau Commission to the effect that between 2004 and 2009, an officer of the Company had at the time participated in improper conduct with respect to political contributions to a municipal political party and in the award of certain municipal contracts in the Montreal area. The individual in question is currently on leave of absence until the Company's review is completed.
All such internal and external allegations are currently under review. The Company is now in possession of new information which confirms that inappropriate conduct in the province of Quebec in the financing of political parties and the awarding of municipal contracts has in fact occurred in the past. The review process is ongoing and no definitive conclusion can yet be drawn.
"GENIVAR does not tolerate any improper business practices and is committed to ethical business conduct in all that it does", said Christopher Cole, Executive Chairman of GENIVAR.
"As previously stated, we are supportive of the work of the Commission and welcome any governmental initiative aimed at improving practices in the award of public contracts in Quebec, with the hope that this will, at some point in time, help restore the image of consulting engineers in Quebec", said Pierre Shoiry, President and Chief Executive Officer.
The Company met with its external auditors to inform them of the facts disclosed in this press release. On the basis of such facts, the Company concluded that no adjustment or restatement of its historical financial statements is required. For the past year, municipal work for the greater Montreal region contributed to approximately 1% of GENIVAR's consolidated revenues and the Company derived approximately 8% of its consolidated revenues from the province of Quebec's public sector.
GENIVAR has improved and strengthened its processes throughout the Company since the time period of the alleged events. Furthermore, the Board has or is in the process of taking further steps recommended by the Special Committee to prevent similar conduct or violations to occur in the future.
Certain information regarding GENIVAR contained herein may constitute forward-looking statements. Forward-looking statements may include statements with respect to, among other things, a potential investigation by regulatory authorities, expectations, opinions or other statements that are not statements of fact. Although GENIVAR believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties, including, without limitation, the risks contained under the heading "Commission Charbonneau" in GENIVAR's Management Discussion and Analysis for the third quarter ended September 30, 2012 and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. GENIVAR's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and GENIVAR does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.
GENIVAR, through its combination with WSP, is one of the world's leading professional services firms, working with governments, businesses, architects and planners and providing integrated solutions across many disciplines. The firm provides services to transform the built environment and restore the natural environment, and its expertise ranges from environmental remediation to urban planning, from engineering iconic buildings to designing sustainable transport networks, and from developing the energy sources of the future to enabling new ways of extracting essential resources. It has 15,000 employees, mainly engineers, technicians, scientists and architects, as well as various environmental experts, based in more than 300 offices, across 35 countries, on every continent. www.genivar.com.