A consortium of European and South African contractors that built tunnels on the huge $2.1bn Lesotho Highlands water project are among a group of 12 firms and ventures implicated in a $2m bribery scandal. The contracting group was led by French firm Spie Batignolles and included the UK’s Balfour Beatty, Ed Züblin of Germany and South Africa’s LTA.

Spie Batignolles spokeswoman Bridget Brullion told T&T International: "We have been informed by the French consulate authorities in Africa that an investigation is going on into various bribery allegations. We deny that we, or the consortium, made any payments of this kind. These allegations have soured what has otherwise been a very successful project." The group, Lesotho Highlands Project Contractors, has been named in court documents as paying $57,269 to Masupha Sole, the former chief executive of client, the Lesotho Highlands Development Authority (LHDA) None of the 12 firms and JVs has been charged with bribing Sole, although they have been named in court documents as paying money to the former LHDA boss.

The Highlands Water Venture built the Katse Dam, while the other firms were either consultants or supplied equipment on the massive water and hydro scheme. Sole has been released on bail after being charged on 12 counts of accepting bribes between spring 1998 and late 1998.

Lesotho’s director of public prosecutions, Godfrey Mdhluli, said the corruption probe was still in its early stages and charges were brought against Sole to ensure that he remained in the country.

He alleges contractors made the payments to Sole ‘as a consideration for action or inaction by him in his capacity’ as LHDA chief executive. If any of the contractors are found to have bribed Sole, the potential consequences could be disastrous, with firms facing possible blacklisting by the World Bank, which provided a $155m project loan.

The bribery investigation is the latest probe into Sole’s activities while head of the LHDA. He left the authority in 1995 after an audit found evidence of abuse of power and financial procedures.

Sole is facing separate charges of fraud and perjury relating to travel expenses and also a civil suit that LHDA has brought against him.