* Bangladesh probe alleges bribery, Globe and Mail reports
* Probe recommends prosecuting 3 former SNC executives
* President of SNC's Candu unit leaves company
* Allegations latest in mounting company scandal
* SNC shares fall 1.1 pct on TSX
TORONTO, Dec 19 A unit of SNC Lavalin Group Inc
said on Wednesday that a senior executive left the
company earlier this month, which was just ahead of corruption
accusations by Bangladeshi authorities, according to a report in
the Globe and Mail newspaper.
Bangladesh's Anti-Corruption Commission has accused Kevin
Wallace, former president of SNC's Candu Energy Inc nuclear
power unit, with conspiring to bribe government officials, the
newspaper said, citing a commission report.
Wallace, previously a project manager at SNC overseeing
mining and industry projects, resigned from the Montreal-based
company in early December.
In a brief press release, Candu said on Dec. 10 that Wallace
had left the company and an acting president would fill his
position until the board of directors appointed a new president.
SNC said on Wednesday that it has not received a copy of the
Bangladesh report and learned of the investigation through the
media. The company also said it would not comment on personnel
files of former employees, or their reasons for leaving the
Attempts to reach Wallace were unsuccessful.
The report is the latest development in a mounting
corruption scandal at SNC. Earlier this month, the company said
it would suspend payments to its former chief executive,
following his arrest on fraud charges by Quebec police.
Pierre Duhaime left SNC in March after an internal probe
found that he had authorized $56 million in company payments to
unknown agents on projects that did not exist.
Quebec's anti-corruption squad said in November that SNC's
former head of construction, Riadh Ben Aissa, faced the same
charges as Duhaime.
Ben Aissa was arrested this spring in Switzerland. According
to media reports, Swiss police are investigating $139 million in
payments to a Swiss bank account tied to contracts in Libya.
The Bangladesh probe is related to a bridge project, for
which the World Bank withdrew a $1.2 billion line of credit in
June, saying it had credible evidence of a high-level corruption
conspiracy among Bangladeshi government officials.
Two former executives at SNC, which had bid to supervise the
contractor on the project, appeared in a Toronto court in July,
accused of bribing officials in Bangladesh. Ramesh Shah and
Mohammed Ismail were arrested by the Royal Canadian Mounted
Police in February following a 2011 raid on SNC's office in
Oakville, outside Toronto.
The Bangladesh anti-corruption report recommends the
prosecution of several Bangladeshi officials, as well as
Wallace, Shah and Ismail, the Globe and Mail reported.
Shares of SNC dropped 1.1 percent, or 45 Canadian cents, to
C$40.61 ($41.15) on the Toronto Stock Exchange at mid-session on