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dam-l Canadian dam firm denies corruption/LS
This if in reply to a recent article about corruption in Lesotho, which
allegedly involved the Canadian firm Acres.
National Post
August 27, 1999
Acres International replies
Column 1
Re: Foreign Aid Corruption Case Puts
Canada on Trial, Aug. 20.
We feel compelled to correct the record
as it has been characterized in Patricia
Adams' commentary. Ms. Adams refers
to Acres International and suggests that
monies were improperly paid by our
company to an official with the Lesotho
Highlands Development Authority
(LHDA). This is simply not the case. We
did not make any such payments, and
we have no knowledge of any improper
transactions.
We wish to state emphatically that we
have an unblemished 75-year record of
engineering consulting in international
markets. Not once in our long history
have we been confronted with allega-
tions of wrongdoing. We have a strict
code of ethical business conduct for all
our employees, which has been in writ-
ten form since 1978, and every officer
and manager renews that commitment,
in writing, every year.
What we find particularly disturbing is
the fact the article is littered with innu-
endo that virtually convicts our compa-
ny in this matter, without the slightest
evidence of wrongdoing.
We too were dismayed to learn, by way
of newspaper stories, of allegations of
improper conduct concerning Mr. Ma-
supha Sole, the former chief executive of
LHDA.
It is important to note that we have
heard nothing from law enforcement
authorities in Lesotho or any other ju-
risdiction about this matter, and we
have no knowledge of any payment to
Mr. Sole or any other LHDA official. It is
Column 2
also important to note that the only for-
mal allegations of improper conduct in
this matter are against Mr. Sole. No
charges of any kind have been laid
against Acres International.
Still, we are taking this matter very se-
riously. We launched an internal review
the moment we learned of it, and noth-
ing has been found to indicate that any
officer or employee of our company was
involved in any form of improper activi-
ty. In addition, law firms in both Canada
and South Africa/Lesotho have been en-
gaged to carry out a detailed review of
the situation, with the objective of con-
firming that all Acres International ac-
tivities concerning LHDA contracts
have been in compliance with the laws
of both Canada and Lesotho.
Since 1987, Acres has had contracts
with the LHDA for providing advisory
services for the planning, engineering
and construction.of the Lesotho High-
lands Development project. These con-
tracts were executed with assistance un-
der separate agreements with Lesotho
firms for legal, accounting, insurance
representation and other services, as is
normal in international consulting and
construction activities.
As a leading proponent of anti-corrup-
tion initiatives, we fully support efforts
by Canada, the World Bank and others
to stamp out this problem – which is as
bad for the cause of international devel-
opment as it is for business. However, by
its very nature, this challenge must be
confronted with due regard for the facts.
Oskar T. Sigvaldson, president, Acres
International.
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Lori Pottinger, Director, Southern Africa Program,
and Editor, World Rivers Review
International Rivers Network
1847 Berkeley Way, Berkeley, California 94703, USA
Tel. (510) 848 1155 Fax (510) 848 1008
http://www.irn.org
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