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dam-l Business Day article, 8 December 1999



>From today's Business Day.


08 December 1999
Lesotho bribery case set for May
More than 20 international companies, individuals involved
David Greybe
CAPE TOWN - The multimillion-rand Lesotho Highlands Water Project bribery trial,
involving more than 20 international companies and individuals, will begin on
May 2 next year and run for five months, the chief magistrate of Maseru said
yesterday.

The companies and individuals were formally charged with 16 counts of bribery,
allegedly involving mainly Masupha Sole, former CEO of the R10bn international
project, to bring water to Gauteng from Lesotho. The accused were charged
together.

The trial date has been set down in the Lesotho High Court from May 2 to October
3 next year. "The 16 charges of bribery involve various combinations of the
accused," advocate Guido Penzhorn SC, who is leading the prosecution for the
state, said.

The prosecution served the accused present with copies of the Swiss bank records
used to prepare the criminal case. The records had been handed over to Lesotho's
director of public prosecutions by the Swiss judicial authorities earlier this
year.

The investigating officer also formally invited the accused to make warning
statements. All of them declined at this stage.

Sole, who is charged with taking R12m in bribes over a 10-year period ending
last year, also faces two charges of fraud and one of perjury.

In a related development on Monday, Sole had a request for "a stay of execution"
to pay R7,776m to his former employer turned down with costs by the trial judge.
In October, Judge Michael Ramodibedi ordered Sole to repay the money to his
former employer, the Lesotho Highlands Development Authority. The criminal case
arose out of the investigations in the civil case.

The companies formally charged in the Maseru Magistrate's Court yesterday are:
Acres International (Canadian); Coyne et Bellier, Sogreah, Spie Batignolles and
Dumez International (all French); ABB and Lahmeyer International (German); ABB
(Swedish); Universal Development Corporation and Electro Power Corporation
(Panamanian); Associated Consultants and Project Managers (Lesotho) and Sir
Alexander Gibb and Partners (British).

Two international consortiums were also charged: Highlands Water Venture, which
includes Kier International (British) and Impregilo (Italian), and Lesotho
Highlands Project Contractors, which includes Spie Batignolles and Ed Zueblin
(German). Certain SA construction companies have been linked to the consortiums.
Also charged yesterday was Cegelec, a partnership which includes CGEE-Alsthom
and General Electric of France.

Individuals formally charged are Sole, Max Cohen of France, JM du Plooy of
Ficksburg and Margaret Bam of Ladybrand.

Represented in court yesterday by some of SA's top law firms were: Sole, Du
Plooy, Bam, Highlands Water Venture, Sogreah, Spie Batignolles, Lesotho
Highlands Project Contractors, Associated Consultants & Project Managers,
Lahmeyer International, Acres International, Sir Alexander Gibb & Partners and
Coyne et Bellier.

World Bank, which has a $150m stake in the project, and the European Union,
which also helped with funding, have told Lesotho they would help pay for the
possibly costly court case. If found guilty, the companies charged could be
debarred from World Bank-financed projects.

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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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