[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

dam-l Canadian dam firm denies corruption/LS



This if in reply to a recent article about corruption in Lesotho, which
allegedly involved the Canadian firm Acres.


National Post
August 27, 1999
Acres International replies

Column 1

     Re: Foreign Aid Corruption Case Puts
     Canada on Trial, Aug. 20.
       We feel compelled to correct the record
     as it has been characterized in Patricia
     Adams' commentary. Ms. Adams refers
     to Acres International and suggests that
     monies were improperly paid by our
     company to an official with the Lesotho
     Highlands Development Authority
     (LHDA). This is simply not the case. We
     did not make any such payments, and
     we have no knowledge of any improper
     transactions.
       We wish to state emphatically that we
     have an unblemished 75-year record of
     engineering consulting in international
     markets. Not once in our long history
     have we been confronted with allega-
     tions of wrongdoing. We have a strict
     code of ethical business conduct for all
     our employees, which has been in writ-
     ten form since 1978, and every officer
     and manager renews that commitment,
     in writing, every year.
       What we find particularly disturbing is
     the fact the article is littered with innu-
     endo that virtually convicts our compa-
     ny in this matter, without the slightest
     evidence of wrongdoing.
       We too were dismayed to learn, by way
     of newspaper stories, of allegations of
     improper conduct concerning Mr. Ma-
     supha Sole, the former chief executive of
     LHDA.
       It is important to note that we have
     heard nothing from law enforcement
     authorities in Lesotho or any other ju-
     risdiction about this matter, and we
     have no knowledge of any payment to
     Mr. Sole or any other LHDA official. It is





Column 2

     also important to note that the only for-
     mal allegations of improper conduct in
     this matter are against Mr. Sole. No
     charges of any kind have been laid
     against Acres International.
       Still, we are taking this matter very se-
     riously. We launched an internal review
     the moment we learned of it, and noth-
     ing has been found to indicate that any
     officer or employee of our company was
     involved in any form of improper activi-
     ty. In addition, law firms in both Canada
     and South Africa/Lesotho have been en-
     gaged to carry out a detailed review of
     the situation, with the objective of con-
     firming that all Acres International ac-
     tivities concerning LHDA contracts
     have been in compliance with the laws
     of both Canada and Lesotho.
       Since 1987, Acres has had contracts
     with the LHDA for providing advisory
     services for the planning, engineering
     and construction.of the Lesotho High-
     lands Development project. These con-
     tracts were executed with assistance un-
     der separate agreements with Lesotho
     firms for legal, accounting, insurance
     representation and other services, as is
     normal in international consulting and
     construction activities.
       As a leading proponent of anti-corrup-
     tion initiatives, we fully support efforts
     by Canada, the World Bank and others
     to stamp out this problem – which is as
     bad for the cause of international devel-
     opment as it is for business. However, by
     its very nature, this challenge must be
     confronted with due regard for the facts.

Oskar T. Sigvaldson, president, Acres
     International.


::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
      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
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::