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dam-l World Bank's take on LHWP corruption/LS



This letter appeared in the Washington Post.

http://www.washingtonpost.com/wp-srv/WPlate/1999-09/12/148l-091299-idx.html

Corruption and The World Bank (Cont'd)
Sunday, September 12, 1999; Page B06
>

In their Aug. 23 letter, Lori Pottinger of the International Rivers Network
and Korinna Horta of the Environmental Defense Fund expressed concern about
alleged corruption in the Lesotho Highlands Water Project. We agree that
such allegations must be taken seriously. For this reason, we are pleased
that the governments of Lesotho and South Africa have investigated the
matter promptly and brought the case to
court.
>
We also agree -- indeed, we are proud -- that the World Bank played a
leading role in making this important project happen, even if our financial
contribution was less than 5 percent of total costs. Our
>commitment to preventing corruption extends well beyond our financial
>involvement in a project. Corruption hurts the poor most of all -- whether
>it involves official aid, private investment or the use of a developing
>country's own taxpayers' money. Therefore, we are determined to help
>African
>countries fight corruption in all its forms.
>
The Lesotho project was in the making for more than 20 years and is
important for southern Africa as a whole, not just Lesotho. In addition to
meeting South Africa's water needs, the project is helping poor
communities in Lesotho through a social fund set up with revenues from the
project. World Bank involvement helped ensure that the project was designed
to the highest economic, social and
>environmental standards.
>
Large development projects can carry special risks, but they can be
designed successfully. Most non-governmental organizations in Lesotho  and
South Africa support the project and appreciate the
>openness and care with which it was prepared. Dealing seriously with
>corruption is  consistent with that openness and with the World Bank's
>interest in seeing  such projects serve the poor.
>
CALLISTO E. MADAVO
JEAN-LOUIS SARBIB
 Washington

The writers are vice presidents for the Africa region at
>the World Bank.
>
>                            Copyright 1999 The Washington Post Company

>         *********
>      Korinna Horta
>      Environmental Defense Fund
>      1875 Connecticut Avenue, NW
>      Washington, D.C. 20009
>      Tel. 202-387 3500 (ext. 125)
>      Fax 202-234 6049 ************
>                                            *************
>                                                    ***********
>