Trudeau says Wilson-Raybould reminded him of a conversation they had last fall, in which he says he told her it was entirely up to her as attorney general to decide whether to instruct the director of public prosecutions to negotiate a remediation agreement with SNC-Lavalin over its dealings in Libya, thereby avoiding a criminal trial.
In her letter of resignation as Veterans Affairs Minister Wilson-Raybould said she has retained former Supreme Court judge Thomas Cromwell as her lawyer to provide advice about speaking publicly about the scandal, as she has been called on to do since the news broke last week in The Globe and Mail.
Jody Wilson-Raybould is out of Justin Trudeau's cabinet.
CTV News has not independently verified the story, and Trudeau has denied it. The current justice minister and attorney general David Lametti has been asked by Trudeau for recommendations on whether to waive said privileges, which would allow Wilson-Raybould to speak about the allegations.
"With a heavy heart I have submitted my letter of resignation to the Prime Minister as a member of Cabinet", Wilson-Raybould wrote in a tweet Tuesday. "I only wish that I could have served you longer", she writes.
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On Wednesday, the House justice committee will meet to review a request from the opposition parties that the committee investigate the allegations.
SNC-Lavalin was charged with paying out $48 million in bribes to Libyan officials in the decade leading up to the NATO-led overthrow of Muammar Gaddafi's government in 2011, payments meant to influence government decision-making, though the company was also charged with defrauding Libyan companies of about $130 million.
Trudeau moved Wilson-Raybould to the veterans affairs portfolio in January.
Her decision follows a week of scrutiny following bombshell allegations of political interference reported by The Globe and Mail.