§ John AustinTo ask the Secretary of State for Trade and Industry what report ECGD received in 1994 about action taken by the Lesothan Government pending an audit of the Lesotho Highlands Water Project; what representations ECGD made to the Government of Lesotho; what action ECGD took; and if she will make a statement about progress with investigations involving bribery and that project. [82350]
§ Ms HewittIn December 1994 ECGD received advice that the Chief Executive of the Lesotho Highlands Development Authority (LHDA) and the Chief Delegate to the Joint Permanent Technical Committee (JPTC) had been asked to vacate their offices pending the outcome of a Management Audit of the LHDA. ECGD was not called upon to respond nor did it think it appropriate to make direct representations to the Government of Lesotho, as there was no suggestion of illegal acts on the part of these individuals.
As to the current situation, ECGD has contacted the companies who were members of the consortia involved in the project and which benefited from its support. We have sought and received assurances from them that they had no involvement in any unlawful conduct and we have been provided with no information to suggest that they were involved in corruption.
We are aware that there has been a guilty verdict against Acres International Canada, which we understand is subject to appeal. ECGD continues to closely monitor developments in relation to the Court action in Lesotho.