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dam-l SA groups to Wash. Post/LS




Below is a letter from the South African NGO Environmental Monitoring Group
in response to the World Bank letter published in the Washington Post.
Also, for your interest is the Lesotho NGO response from Transformation
Resource Centre and the Highlands Church Action Group. The letter below has
been sent to the Washington Post.
-------------------------------------------------------

South African NGO's Oppose Lesotho Highlands Water Project -- Response to
World Bank Letter

It is truly amazing that representatives from the World Bank on the other
side of the globe from South Africa, can unequivocally say in the their
letter printed in the Washington Post (12 September) that "most
non-governmental organizations in Lesotho and South Africa support the
[Lesotho Highlands Water] project and appreciate the openness and care with
which it was prepared".  Whilst the NGOs in Lesotho can speak on their own
behalf, the majority of the NGOs in South Africa clearly do not support the
Lesotho Highlands Project.

What is even more frightening is that World Bank officials, Callisto Madavo
and Jean-Louis Sarbibr, hold up the experiences from Katse Dam, the only
phase of the Lesotho Highlands Development Project thus far completed, to be
of the highest economic, social and environmental design standards. There is
clearly a large gap between design and implementation.

The Lesotho Communities affected by this megadam have been displaced without
adequate compensation. These "development refugees” have been moved from
living off the land to living with empty pockets, and many have lost access
to their community and to their families who are scattered across the land.
Even worse, the rate of HIV amongst the highlands women has escalated many
times over, without any adequate plans in place to prevent the same
escalation to take place during the current construction of Mohale Dam. So
how can we be impressed by the openness and care of the World Bank which
seems to preclude the carrying out of its promised compensation. We are not
talking about affecting lives, we are talking about stripping lives naked,
and then making excuses for not sending new garments on time or at all. The
policy principle that the World Bank espouses from faraway is that
communities should be better off than before. Clearly, for those who have
lost access to the land of their ancestors and to the natural resource base
that has sustained them in the form of building materials, energy, food,
medicines and traditional practices, this is not the case.

The above notwithstanding, we are pleased to see the World Bank take such a
high moral stand on the corruption allegations against the previous Chief
Executive Officer of the Lesotho Highlands Development Authority. We look
forward to seeing how this manifests in the World Bank's future lending
arrangements with the companies involved.

Liane Greeff
Environmental Monitoring Group

The following letter was sent to the Washington Post on Sept. 15 in
response to the World Bank letter of Sept. 13 (which was sent to listserv).


**************************************************

In their Sept. 13 letter regarding corruption allegations in the Lesotho
Highlands Water Project (LHWP), Callisto E. Madavo and Jean-Louis Sarbib of
the World Bank claim they are "determined to help African countries fight
corruption".  We, as members of non-governmental organizations in Lesotho,
appreciate this sentiment.  We are troubled, however, by their failure to
promise World Bank sanctions against the 12 multi-national corporations
when it is proved that they bribed the former chief executive of the LHWP.
What better way is there to "fight corruption" than to punish the big
companies that tempt us "poor" Africans with big bribes?

Madavo and Sarbib also claim that the LHWP is "helping poor communities in
Lesotho through a social fund" set up with LHWP revenues.  Unfortunately,
this is not our perception here on the ground.  The fund has been and
continues to be a tool of opportunistic politicians.  Although the
committee designated to select projects to be supported by the social fund
has not met even once yet, money from the fund has been used to support
ill-conceived projects built by workers hired according to political party
affiliation.  In Lesotho, we see the same stretch of road repaired; torn up
the next week; repaired again the following week; and then torn up once
more at the end of the month.  We see workers increase the height of unused
dams, and then cut spillways in them that effectively reduce their carrying
capacities to their original levels.  These projects are supported by the
LHWP's social fund.  Is this how large development projects "serve the
poor"?

We do support the LHWP, but we are beginning to question the "openness and
care with which it was prepared." Punishing the corrupt multi-nationals
involved with the LHWP and closely monitoring the implementation of the
project's social fund would reassure us of the World Bank's concern.  Mr.
Madavo and Mr. Sarbib, if you want to serve the "poor", help us to
challenge the existing power and economic relations that keep us "poor".

Motseoa Senyane
Transformation Resource Centre
Maseru, LESOTHO

Thabang Kholumo
Highlands Church Solidarity and Action Centre
Maseru, LESOTHO

Corruption and The World Bank (Cont'd)
Sunday, September 12, 1999; Page B06


In their Aug. 23 letter, Lori Pottinger of the International Rivers Network
and Korinna Horta of the Environmental Defense Fund expressed concern about
alleged corruption in the Lesotho Highlands Water Project. We agree that
such allegations must be taken seriously. For this reason, we are pleased
that the governments of Lesotho and South Africa have investigated the
matter promptly and brought the case to
court.

We also agree -- indeed, we are proud -- that the World Bank played a
leading role in making this important project happen, even if our financial
contribution was less than 5 percent of total costs. Our
commitment to preventing corruption extends well beyond our financial
involvement in a project. Corruption hurts the poor most of all -- whether
it involves official aid, private investment or the use of a developing
country's own taxpayers' money. Therefore, we are determined to help
African
countries fight corruption in all its forms.

The Lesotho project was in the making for more than 20 years and is
important for southern Africa as a whole, not just Lesotho. In addition to
meeting South Africa's water needs, the project is helping poor
communities in Lesotho through a social fund set up with revenues from the
project. World Bank involvement helped ensure that the project was designed
to the highest economic, social and
environmental standards.

Large development projects can carry special risks, but they can be
designed successfully. Most non-governmental organizations in Lesotho and
South Africa support the project and appreciate the
openness and care with which it was prepared. Dealing seriously with
corruption is consistent with that openness and with the World Bank's
interest in seeing such projects serve the poor.

CALLISTO E. MADAVO
JEAN-LOUIS SARBIB
 Washington

The writers are vice presidents for the Africa region at
the World Bank.

 Copyright 1999 The Washington Post Company

-----------------------
For more information: 
Liane Greeff
Environmental Monitoring Group,
PO Box 18977  Wynberg, South Africa, 7824
E: liane@kingsley.co.za Tel: +27 +21 7610549/788 2473 Fax: 762 2238