Lahmeyer International, the German consulting engineer, was found guilty last month of bribing a former chief executive of the US$multi-billion Lesotho Highlands Water Project.
The bribes (approximately US$550,000) were in return for favourable contracts. Lahmeyer is the second company to be convicted in a trial that began in 1999. Acres International, the Canadian engineering firm, received a US$2.2M fine for its involvement in the scandal, which has been suspended pending an appeal. Masupha Sole, the project’s former chief executive, was also convicted of corruption, and is now serving a 15-year prison sentence.
Lahmeyer met the decision with “disappointment”, and is currently consulting its lawyers.
“The course of the trial gave rise to the expectation of a verdict of ‘not guilty’, especially in view of the fact that the World Bank closed the case, which they had started on the same issue against our company, more than a year ago,” Lahmeyer said in a statement.
However, some organisations are calling for greater scrutiny over all the projects that Lahmeyer is involved in. “We expect the World Bank to bar Lahmeyer and all other companies found guilty of corruption on the Lesotho Highlands Water Project from participating in other World Bank-funded projects,” said Ryan Hoover, of the International Rivers Network, a body that defends local communities from development.
International contractors, Spie Batignolles, Dumez, and Impregilo also face prosecution.
Sentencing is due this month.
