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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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