The World Bank has formally reopened a corruption inquiry into a leading Canadian engineering company which could lead to the first blacklisting of a major international firm. The move follows the conviction of Acres International in the high court of Lesotho in southern Africa, an unprecedented example of a western firm being prosecuted for bribery by a developing country. The Ontario company was the first of several to be found guilty of bribing Masupha Sole, the chief executive of the multibillion-dollar Lesotho Highlands Water Project, a massive series of dams providing water to South Africa and electricity to the tiny, landlocked country.

Hundreds of thousands of people in Lesotho will require international assistance for a third consecutive year due to the combined impact of another devastating drought and the worsening HIV/AIDS epidemic, warned James T. Morris, the UN Secretary-General’s Special Envoy for Humanitarian Needs in Southern Africa. “Any hopes that Lesotho’s humanitarian crisis would begin to ease this year have been dashed by yet another drought and by the increasingly devastating impact of HIV/AIDS,” Morris said.