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dam-l Lesotho investigators eye SA contractors/LS
Business Report 19/6/00
Lesotho investigators eye SA contractors
By Peter DeIonno
South African companies and officials are under the corruption spotlight as
investigators follow the money in the multimillion-rand Lesotho Highlands
Water Project bribery scandal.
Guido Penzhorn SC, the investigator and prosecutor in the complex trial
which opened two weeks ago in the Lesotho High Court in Maseru, last week
confirmed reports that new information had led his investigation across the
border.
"We are definitely looking at people and companies in South Africa,"
Penzhorn said. "The enquiry may also run into activities connected with the
Maputo Corridor development."
On Wednesday Judge Brandon Cullinan adjourned until August 1 the trial in
which Masupha Ephraim Sole, the former chief executive of the R10 billion
project, has been accused of taking about R25 million in bribes from some of
the world's largest construction companies.
Although Sole and 18 others were initially indicted, only five of the
defendants will be in the dock when the case reopens.
They are Sole; Jacobus Michiel du Plooy, a South African who was an alleged
intermediary for bribes given to Sole by Highlands Water Venture, the
partnership which built the Katse dam; Margaret Bam, another alleged
intermediary; Lahmeyer International of Germany and Acres International of
Canada.
Cullinan ruled on Wednesday that despite the definition in the Lesotho
Criminal Procedure Act that a partnership had the same legal status as a
company, the partnership, the Highlands Water Venture (HWV), had been
incorrectly charged.
He accepted arguments by Gerald Farber SC and held that the definition in
Lesotho law could be ignored and that the members of a partnership,
including Impregilo of Italy, Group Five of South Africa, Kier International
and Stirling of the UK should have been cited individually, as in South
Africa.
Penzhorn gave notice that the judgment would be taken on appeal in the
Lesotho Court of Appeal. It is expected to be heard in October.
The decision means the evidence given in the August trial against HWV or its
members will go uncontested.
Max Cohen, the fifth accused, and two Panama-registered companies associated
with him, Universal Development and Electro Power, have not presented
themselves for trial. The Lesotho police have asked Interpol to locate Cohen
as a prelude to launching extradition procedures.
Proceedings against two French companies, Dumez International and Cegelec,
were deferred because they could not be served with summonses.
http://www.iol.co.za/news/newsview.php3?click_id=81&set_id=1&art_id=ct200006
18192223749F63686
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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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