CORRECTED-UPDATE 2-Canada's top court rules World Bank does not have to hand over files

(Corrects to clarify SNC-Lavalin Inc was debarred by World
Bank)
By Leah Schnurr and Mica Rosenberg
OTTAWA/NEW YORK, April 29 (Reuters) - Canada's top court
ruled on Friday that the World Bank did not need to turn over
documents sought in a case against former employees of
SNC-Lavalin accused of bribery, finding the international
organization had immunity from the request.
The case has been closely watched given its implications for
how the World Bank investigates corruption and its ability to
protect whistleblowers.
The Supreme Court of Canada overturned a lower court order
from 2014 that said the World Bank should release its
investigative files for judicial review that could be relevant
to the defense. The World Bank had appealed, claiming immunity.
The bank, joined by the Canadian government, contended that
if Canadian courts can force the international organization to
hand over documents, there is a risk other countries would do so
as well to persecute tipsters.
In its unanimous decision, the Supreme Court ruled that the
trial judge "erred in construing so narrowly an immunity that is
integral to the independent functioning of international
organizations."
The World Bank barred SNC-Lavalin Inc, a subsidiary of
SNC-Lavalin Group SNC.TO , from participating in World
Bank-funded projects for 10 years after conducting an
investigation into corruption allegations concerning the
engineering firm.
It shared some information with the Royal Canadian Mounted
Police, which did its own probe. Three former SNC executives and
one other man were charged, one of several scandals to hit the
Montreal-based company.
The accused were charged with bribing foreign public
officials in relation to SNC's bid for a construction
supervision contract for the Padma Bridge in Bangladesh, which
was funded by the World Bank. The accused argued the internal
World Bank documents could be relevant to their defense.
"Shielding an organization's entire collection of stored
documents, including official records and correspondences, is
integral to ensuring their proper, independent functioning," the
Canadian top court found.
The court ruled that the partial voluntary disclosure of
some documents by the World Bank did not amount to a waiver of
its immunity. It also found that personnel immunity shielded
World Bank investigators from being compelled by a Canadian
court.
The World Bank welcomed Friday's decision.
"Today's announcement is a vote of support to the World
Bank's anti-corruption work and its cooperation with member
countries to ensure that development projects are implemented
with integrity," said Leonard Frank McCarthy, World Bank
Integrity Vice President.