Probe International
December 12, 2002

Lesotho’s Court of Appeal suspends payment on the landmark US$2.25-million fine levied against Canadian engineering giant, Acres International.

(Toronto, December 12): The Court of Appeal of Lesotho yesterday suspended payment on the landmark US$2.25 million fine levied against the Canadian engineering giant, Acres International, for bribing a senior official of the Lesotho Highlands Development Authority.

Mr. Justice Jan Steyn, President of the Court of Appeal, sitting with two other appeal court judges, allowed suspension of payment of the fine imposed by the Lesotho High Court pending the outcome of Acres’ appeal of its conviction. The company was convicted in September of two counts of bribing the Development Authority’s former chief executive, Masupha Sole, with some US$260,000 which was paid through Acres’ agent’s Swiss bank account.

The Appeal court has, however, ordered Acres to provide a R2-million (US$225,000) cash payment or a bank guarantee from a South African or Lesotho bank, as security until the appeal has been heard. This security payment is to be made by January 9, 2003 and Acres’ appeal is set for the April 2003 session of Lesotho’s Court of Appeal.

Acres has denied knowledge of the payments made by its agent. It is also looking forward to its appeal: George Soteroff, a Toronto public relations specialist speaking for the company told the Toronto Globe and Mail that the Lesotho High Court was not qualified to hear a case of such complexity and that he believes the country’s Court of Appeal, which is comprised of experienced South African judges, “will validate our belief in our innocence.”

Acres was the first of a dozen companies indicted for making bribe payments to Mr. Sole to be tried. The case is being watched closely around the world because it is the first time that bribe-givers, as well as bribe-takers, have been charged and convicted in a high-profile international project.

The World Bank, which funded Acres’ work on the project, is also reviewing the court transcripts to determine whether Acres should be blacklisted from future contracts, as is called for by Bank operating rules.