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Enron: Cancelled Loans, Bribery and Corruption : Corruption Case

In March 2000, the World Bank cancelled a $100m water project loan because of corruption concerns. Ghana has also been called upon to pay $800,000 for the costs of preparing the defunct project.

The UK's Department for International Development also cancelled a $30m rural water project.

The company which was awarded the contact on a 'non-transparent basis', Enron subsidiary Azurix, denies press allegations that the company paid a $5m bribe to senior officials to secure the contract.

Peter Harrold, the bank's country director, who informed the government of its intention to kill the loan, said: "There were suspicions of corruption, and a draft schedule of payments by Azurix showed a Dollars 5m upfront payment."

The recipient was not specified, though Azurix executives, who deny bribery, said the payment was to the water company for taking over an asset.

The bank was also concerned about the cost of the water, which, at 95 cents a cubic metre, was at least one-third more expensive than the average in the capital area. After the loan was cancelled, Enron pulled out. Though five other water companies entered the open competition, Azurix did not.

The following lists all references contained in our database that are relevant to this briefing
Africa Energy & Mining [3/29/2000] 'Rocky Ride for Enron' [Source ID = 5310]

Africa Confidential [3/17/2000] 'Ghana: World Bank turns off the taps on water project , 17 March 2000' [Source ID = 5311]

Financial Times [2/12/2002] 'Enron: over there and overpaying' by THOMAS CATAN, STEPHEN FIDLER, KHOZEM MERCHANT, GWEN ROBINSON and ROBERT WRIGHT [Source ID = 6615]

Washington Post [5/6/2002] 'Enron Pipeline Leaves Scar on South America: Lobbying, U.S. Loans Put Project on Damaging Path' by James V. Grimaldi [Source ID = 6666]


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