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dam-l LHWP official forced to pay/LS
21 October 1999
Former official ordered to pay
David Greybe
CAPE TOWN - The former top official at the Lesotho Highlands Water Project,
Masupha Sole, has been ordered by that country's high court to pay R7,776m to
his former employer.
The case, one of the longest civil trials in Lesotho, began in Maseru in
November 1996.
Sole has also been charged in a separate but related criminal case with taking
R12m in bribes from a dozen international companies in more than 10 years.
That case is expected to begin early next year.
It has taken two years of extensive investigation to put together, and involved
close co-operation between the governments of Lesotho and SA, with the
assistance of Swiss and French authorities. The companies involved include ABB
(Swedish-Swiss), Dumez International, Spie Batignoles, Sogreah (French),
Impregilio (Italian), Hochtief, Lahmeyer Consulting Engineers (German) and Acres
International (Canadian).
Yesterday's judgment by Judge Michael Ramodibedi was in favour of the Lesotho
Highlands Development Authority - Sole's former employer.
The civil case arose out of a disciplinary hearing against Sole in 1994 and 1995
while he was CE of the development authority.
The R10bn international project to bring water to Gauteng from Lesotho is
managed by the development authority and is overseen by the governments of
Lesotho and SA. The civil case involved 11 claims against Sole, including fraud,
abuse of entertainment and travel claims, and housing and other allowances.
The biggest claim was for R6,5m, and arose from an authorisation by Sole for the
alteration of the conditions of the Muella Dam contract - the hydro-power plant
built in conjunction with the Muella Dam which is situated below the Katse Dam
(part of the Lesotho Highlands Water Project).
Sole was found by the court to have authorised the alteration of the contract in
favour of the contractor, Muella Hydro-Power Contractors - a consortium of
international contractors.
As a result of the alteration, the Lesotho Highlands Development Authority ended
up paying R6,5m more to Muella, which is also implicated in the criminal case
against Sole, in which he is facing 14 charges of bribery and fraud and one of
perjury.
Sole indicated yesterday he would be appealing against the court judgment.
However, sources in the Lesotho Highlands Development Authority said they would
resist an appeal.
The development authority was represented by advocate Guido Penzhorn SC of
Durban, and Sole's legal counsel was advocate Guy Hoffmann SC, of Johannesburg.
ends
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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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