Canadian Press
October 29, 2002

CAPE TOWN (CP) – The South African government applauded Tuesday a Lesotho court’s decision to fine a Canadian company more than $3.1 million Cdn for bribing an official in charge of a multibillion water project. The Lesotho High Court on Monday ruled that Acres International Ltd. of Oakville, Ont., a Canadian engineering firm, had bribed Masupha Sole, former chief executive of the Lesotho Highlands Development Authority, a total of 6.5 million rand ($1 million).

The bribes were intended to secure the firm lucrative contracts on the Lesotho Highlands Water Project, which Sole’s agency controlled, the court said.

The court fined Acres 22.5 million rand ($3.4 million) as punishment.

Sole was sentenced to 18 years in prison for receiving bribes from several international companies involved in the project.

Other companies implicated in the bribery scandal were expected to be prosecuted as well.

South African Water Affairs Minister Ronnie Kasrils said in a statement Tuesday he hoped the ruling sent the message “loud and clear to the international community” that corruption would not be tolerated in Africa.

Acres said in a statement Tuesday it was not guilty and planned to appeal the decision.

Acres said it had hired a local engineer who, unbeknownst to the company, had shared some of his salary with the project director.

“Acres had no knowledge of any payments, had no motive for them and received no benefit,” the company said.

The company said it was awarded the contract only after an international competitive bidding process, supervised by Lesotho and South Africa and approved by the World Bank.

The $12.5 billion dollar dam and tunnel project was partially financed by the World Bank.

For more on this story, read Patricia Adams’ Letter to the Editor.