THIRD SUPPLEMENTARY MEMORANDUM SUBMITTED
BY THE EXPORT CREDITS GUARANTEE DEPARTMENT
ECGD: LESOTHO HIGHLANDS WATER PROJECT
You asked if I would supplement the evidence
I gave to the Committee on 1 February regarding the allegations
of corruption made against Balfour Beatty in relation to the Lesotho
Highlands Water Project. In particular you suggested I should
address the claim made by The Guardian in an article on
17 February that I was incorrect in saying that Balfour Beatty
had not been prosecuted and that the companies, of which it was
a consortium member, had not been charged at all.
As I explained in the letter I wrote to The
Guardian on 22 February, which I copied to the Committee,
I am satisfied that I did not mislead the Committee in the evidence
I gave. Contrary to what The Guardian claimed in its selective
quotations from my evidence, I referred to the charges which had
been made against the consortium of which Balfour Beatty is
a member and said that the consortium had denied any wrong doing.
I also said that Balfour Beatty had not been prosecuted for bribery;
whilst Balfour Beatty had, as a member of the consortium, been
indicted for bribery, the prosecution is not due to begin until
2 May.
You also asked whether I had all relevant information
on the case. I can confirm that I did, indeed, have access to
all information that was available to ECGD at that time. ECGD's
information came from discussions with the UK companies involved
in the allegations, and from contacts with the British High Commission
in Maseru and the lending bank involved in the transaction. Other
than this, I cannot conceive of any other relevant information
to which I might have had access—ECGD does not, for example,
have access to the evidence to be put before the courts.
We will, of course continue to monitor the information
emerging about the case as it progresses through May and June.
However, as I explained when I gave evidence to the Committee,
I do not think I can comment further on a case which is at present,
as I said in evidence, sub judice.
I hope this answers your questions sufficiently,
but would be happy to provide further clarification if necessary.
Vivian Brown
Chief Executive, Export Credits Guaranteee Department
April 2000
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