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dam-l Lesotho case/LS
This is a bit dated but of interest....
LESOTHO JUDGE AWARDS R7M DAMAGES TO LHDA
MASERU 21 October 1999 Sapa
The Lesotho High Court awarded damages of over R7 million to the
Lesotho Highlands Development Authority (LHDA) against its first
chief executive officer Masupha Ephraim Sole.
The LHDA sued Sole for R7 776311,98 arising out of 11 claims he
made from July 1988 to July 1991 relating to overseas trips, house
rentals and other expenses.
The LHDA is the authority which monitors maintenance and
implementation of projects like the Lesotho Highlands Water
Project, which supplies water to South Africa.
Judge Michael Ramodibedi took three hours to deliver the judgement
- the longest civil case in Lesotho's legal history.
The biggest claim was for R6 362488,31 - which was the sponsorship
the Lesotho Highlands Water Project lost from the European Union.
Sole authorised the alteration of the conditions of the Muella Dam
contract without clearance from the EU headquarters in Brussels,
the court heard.
Once the EU realised it was not approached for approval, the
organisation dropped its sponsorship.
Ramodibedi said the fact that Sole accompanied an LHDA senior
official to the EU in Brussels when they were seeking funds for
the project, proved that Sole knew he was supposed to gather
clearance from the EU before authorising the alterations.
Ramodibedi said the LHDA claimed that Sole had acted in bad faith
with reckless disregard for his mandate and the interests of his
employer, and in so doing had caused the damage claimed.
He said at the very least, Sole "acted negligently" and that in
his view was liable "in as much as he was in breach of his duties
to conduct the affairs of the LHDA with skill and care imputed in
the Water Treaty".
The other claims which have been awarded to the LHDA include
R212660,43 overpayment of expenses, salary overpayments of R1
674795,20 made to Sole, not provided for in his contract and to
which he was not entitled.
It was claimed that Sole had fraudulently represented to the LHDA
that he would be attending the International Conference on Large
Dams in Geneva on behalf of the LHDA.
The amount was R39350,50 being the costs of participation at the
conference, air tickets and a cash advance.
Alleged fraud relating to LHDA drivers' overtime claims amounted
to R42563, damage to Sole's motor vehicle after a collision in
South Africa R14818 and repayment to the LHDA of cash in lieu of
leave came to R39050.
According to evidence Sole attended only the opening cocktail
party at the conference in Geneva then went on a tour of Paris and
Moscow where he visited six dams on the Moscow river, and went to
the Bolshoi Theatre and visited Red Square, with his wife.
The Judge said although Sole's wife was not on an official trip,
there was evidence that he claimed reimbursement for his wife's
accommodation in Vienna, Paris and London.
Ramodibedi said it was the case of the LHDA that Sole abused his
powerful position to defraud it of huge sums of money or to
"ingratiate" himself with high-ranking people in the Government of
Lesotho.
He wrongfully entered into three-year lease agreements with
several people in Maseru at exorbitant rentals for which the LHDA
claimed it had suffered loss and damage totalling R168520.
One of the properties involved was a two-storey residence in
Maseru, belonging to Deputy Prime Minister Kelebone Maope, who
charged a monthly rental of R4500.
An official of the water authority considered the rental too high
and it was agreed to reduce it to R4000 per month and R48000 was
paid upfront for a 12 month period.
Another lease agreement was between Sole and Lesotho's former
Ambassador to the United States, Thabo van Tonder for R37560.
According to the administration manager of the LHDA, Sole
overruled her when she proposed the cancellation of the lease
because the house in question was uninhabitable as sewerage seeped
through the septic tank continuously.
Ramodibedi said Sole rejected this as "we need to be in good
relations with the Ambassador the United States because he is one
who helps us with the World Bank."
Sole was ordered to pay the cost of the suit.
Advocate GH Penzhorn SC, assisted by Advocate HHT Woker appeared
for the LHDA and Advocate BGI Hoffman SC, assisted by Advocate PU
Fischer for Sole.
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source: gopher://gopher.anc.org.za/00/anc/newsbrief/1999/news1022
processed Fri 22 Oct 1999 10:28 SAST.
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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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