Brussels - Three European companies were found guilty and fined 4.4-million Euro for paying bribes in order to win contracts in Lesotho, the European Anti-Fraud Office (OLAF) announced.
The details of the case were published now, as evidence is mounting that Western companies are paying bribes in developing countries.
The Lesotho investigation into the suspicions of fraud and bribery, in regard to the Highland Water Project, began in November 1999.
The donors of the project, such as the European Commission, the European Investment Bank and the World Bank, were informed of the findings of the criminal investigation.
The Lesotho Highlands Water Project was set up for the construction of dams, water transfer tunnels and an underground hydroelectric power plant. It is one of the biggest dam projects in the world and the largest bi-national construction project ever in Africa.
The European Union has been involved in this project since the early eighties.
The total European Development Fund (EDF) financing for the project was 61.2-million Euros and the share of the European Investment Bank (EIB) in the funding of the project was 122.5-million Euro.
The Chief Executive Officer of the project was found guilty of bribery by the High Court of Appeal of Lesotho and is serving a 15 year prison sentence. (Ed. Note: His name is withheld for reasons of privacy.)
The French company, Schneider Electric of France pleaded guilty and was convicted of 16 counts of bribery and fined 1.19-million Euro.
The Impregilo company of Italy, pleaded guilty in the High Court of Lesotho to the alternative charge of Attempting to Defeat the Course of Justice and was fined 1.62-million Euros.
Lahmeyer engineering contractor of Germany was found guilty of eight counts of bribery and was fined 1.6-million Euros. An appeal before the Court of Appeals of Lesotho was rejected.
OLAF revealed the fines only now, although the fines were given in 2004, because there was no longer scope for the companies to appeal.
Israel Rafalovich
Please also see:
European Anti-Fraud Office (OLAF)
http://ec.europa.eu/anti_fraud/index_en.html
Transparency International 2006 Bribe Payers Index
http://www.unobserver.com/index.php?pagina=layout4.php&id=2646&blz=1
The details of the case were published now, as evidence is mounting that Western companies are paying bribes in developing countries.
The Lesotho investigation into the suspicions of fraud and bribery, in regard to the Highland Water Project, began in November 1999.
The donors of the project, such as the European Commission, the European Investment Bank and the World Bank, were informed of the findings of the criminal investigation.
The Lesotho Highlands Water Project was set up for the construction of dams, water transfer tunnels and an underground hydroelectric power plant. It is one of the biggest dam projects in the world and the largest bi-national construction project ever in Africa.
The European Union has been involved in this project since the early eighties.
The total European Development Fund (EDF) financing for the project was 61.2-million Euros and the share of the European Investment Bank (EIB) in the funding of the project was 122.5-million Euro.
The Chief Executive Officer of the project was found guilty of bribery by the High Court of Appeal of Lesotho and is serving a 15 year prison sentence. (Ed. Note: His name is withheld for reasons of privacy.)
The French company, Schneider Electric of France pleaded guilty and was convicted of 16 counts of bribery and fined 1.19-million Euro.
The Impregilo company of Italy, pleaded guilty in the High Court of Lesotho to the alternative charge of Attempting to Defeat the Course of Justice and was fined 1.62-million Euros.
Lahmeyer engineering contractor of Germany was found guilty of eight counts of bribery and was fined 1.6-million Euros. An appeal before the Court of Appeals of Lesotho was rejected.
OLAF revealed the fines only now, although the fines were given in 2004, because there was no longer scope for the companies to appeal.
Israel Rafalovich
Please also see:
European Anti-Fraud Office (OLAF)
http://ec.europa.eu/anti_fraud/index_en.html
Transparency International 2006 Bribe Payers Index
http://www.unobserver.com/index.php?pagina=layout4.php&id=2646&blz=1