Reuters
October 29, 2002

A Canadian engineering firm embroiled in a high-profile bribery case in Lesotho said on Monday it would appeal against a $2.2-million fine handed down by the country’s high court.

Acres International was found guilty last month of bribing a senior government official to win construction contracts for a major water project in the southern African kingdom.

In passing sentence on Monday, a Lesotho judge fined the Toronto-based company 22.5-million maloti (about US$2.2-million) in what some observers have called a landmark corruption case in Africa.

“Acres vociferously protests its innocence and is committed to strongly defending its good reputation,” the Canadian firm said in a statement.

The Lesotho Highlands Water Project is an ambitious project to pump water from the tiny mountain kingdom to South Africa’s industrial heartland.

Acres is the first of several Western companies facing charges that they paid bribes to win contracts for the project.

If found guilty, the companies could be barred from future projects backed by the World Bank.

Acres was found guilty and fined for its role in the bribing of Masupha Sole, the former chief executive of the Lesotho Highlands Development Authority who was convicted in June of corruption and sentenced to 18 years in jail.

The court found that Acres’ now deceased representative in Lesotho had made a series of payments to Sole in the 1990s.

Acres has denied any wrongdoing and insisted it was unaware that its representative was paying some of his fee to Sole.

“The payments were entirely between the representative… and the director of the water project. Acres had no knowledge of any payments, had no motive for them and received no benefit,” the company said.