Pretoria, November 17, 1999.

"DON’T CORRUPT THE TRUTH," KASRILS TELLS PROTESTERS

In a statement to the media, the Minister of Water Affairs and Forestry, Ronnie Kasrils voiced his concern about critics of the World Bank, for what he called their "corruption of the truth." International financiers of the Lesotho Highlands Water Project – including the hosts, the World Bank - gathered in the city today to discuss anti-corruption policies and ways of supporting Lesotho in combatting corruption and bribery, following the prosecution of Mr Sole, a former chief executive of LHDA.

Minister Kasrils reiterated that authorities had been involved in a thorough investigation of the matter, followed by a legal process of more than four years to bring Mr Sole to book. He dismissed accusations made recently by one of the critics that his efforts were "wholly inadequate", saying, "Look at the scoreboard. Our side is winning." The ongoing effort of the authorities to prosecute Sole have not been in vain - the court found in their favour and ordered him to repay approximately R7.7 million. "Now the criminal case is being pursued in Maseru and summons are being issued as we speak," the Minister said.

MOTIVES QUESTIONED

"The critics’ shameless linkage of the World Bank to the scandal, as well as to the initiatives of iGoli 2002 cannot stem from mere ignorance," Minister Kasrils said. "They claim to fight corruption, but then use the corruption of the truth," he added. "The World Bank is not involved in any cover-up. It’s exactly the opposite," according to the Minister. Referring to calls for the "shutdown of the LHWP", he questioned the motives of those concerned, saying, "How can they seriously think about blocking this priceless lifeline to continued life, jobs and health in Gauteng? Surely, they cannot have the welfare of our people at heart? "

USE BANK EXPERTISE

"I concur with Mr Wolfensohn (of the World Bank) who, after his meeting with President Mbeki said, ‘we cannot conceive of South Africa not succeeding’ to meet its economic and social objectives. Surely the protesters follow the news. This Government is not chasing World Bank loans, but we are attacking the huge problem of poverty in a transparent and responsible manner, " Minister Kasrils said, adding "and we will use the (Bank’s) huge reservoir of expertise. We will also do so in the fight against corruption."

Minister Kasrils pointed out that the ANC Government was committed to turning the tide on the issue of corruption.

"We don’t expect laurel wreaths just yet," he said, "but we don’t expect to be wrongfully accused either." He said that while he valued all forms of constructive criticism against corruption, he would not accept misleading generalisations that bore the seeds of anarchy. "We cannot act irresponsibly, especially when international relations are at stake. We cannot build with one hand and break down with the other."

"It is reassuring to know that we are not alone in the fight against corruption," Minister Kasrils said. "Today our resolve was strengthened by the joint action plan developed by the institutions who attended the meeting." He declined to give more details of the plans, saying, "We would like to keep it as a surprise for anyone who might attempt to derive some illegal benefit. We mean business."

The Sole case to date

Mr Ephraim Masupha Sole, former CE of the Lesotho Highlands Development Authority (LHDA) was dismissed in 1995 following a management audit. The LHDA instituted civil proceedings against Sole. Despite denials under oath as to their existence, Sole’s South African and, in mid-1999, Swiss bank accounts were uncovered. Large sums of money, paid to Sole by intermediaries, were traced to companies involved in the construction of the Lesotho Highlands Water Project.

Following the disclosure by the Swiss, the Lesotho Director of Public Prosecution immediately filed criminal charges against him.

Meanwhile, judgment was handed down in the civil case in favour of the project authorities.

The prosecutor has issued summons for several people to appear before the court on bribery charges.

LHWP IS A STRATEGIC ASSET

Turning to the Lesotho project, he expressed the hope that its detractors would appreciate what it meant for the future growth and stability of the country. "Our future security doesn’t rely on nuclear weapons, but on access to sustainable water resources. While we are firmly committed to demand management initiatives, we have taken steps to ensure that we can survive serious climatic irregularities without suffering economic disaster."

Minister Kasrils noted that the LHWP "was an object of pride and a strategic asset to both South Africa and Lesotho" because it guaranteed mutual growth and stability.

END