Lies, Damn Lies, and Those Told by Bechtel and the World Bank

I guess I am not stunned anymore by the willingness of people in high public places to lie. The present administration in Washington has nearly made it a habit. However, I do truly remain stunned by the eagerness with which some people in high places are willing to lie on matters of basic fact, when those facts are so clearly documented by their own institutions.

Today I bring you two examples: The World Bank and the Bechtel Corporation.

This week a flurry of reporters has been in touch, writing stories about this month’s revolt against water privatization in El Alto. Reporters in contact with the World Bank and Bechtel continue to be told by their respective PR people the same goofy lies they have been telling for nearly five years:

LIE #1: The World Bank DID NOT coerce Bolivia into privatizing the public water systems of Cochabamba and El Alto/La Paz.

The Bank has been saying this for years, and has attacked me in print and over the phone for claiming that the Bank did indeed coerce the Bolivian water privatizations. If only the World Bank would read it own reports. Doubters should check out this Spring 2002 report from the World Bank, posted on the World Bank’s Web site. In it the Bank says quite clearly:

“These problems [with advancing water privatization voluntarily] were only addressed when the President of Bolivia decided to privatize the La Paz and Cochabamba water and sewage utilities, a Bank condition for the two-year extension of the [World Bank water development] loan to 1997.”

Note to the World Bank PR office: Do you really think that lying to reporters enhances your credibility with the media?

LIE #2: Bechtel’s water subsidiary, which ran its Cochabamba corporation, NEVER changed its corporate registration from the Cayman Islands to Holland [the maneuver that Bechtel pulled to set up its legal action against Bolivia before a World Bank trade court].

A reporter contacted me with this whopper yesterday, and asked if I could substantiate our claim in the face of Bechtel’s denial. Here again, the evidence can be found right on Bechtel’s own Web site with this corporate news release. It reads [on page five]:

“As an arbitrative body affiliated with the World Bank, ICSID has jurisdiction over this dispute by virtue of a bilateral investment treaty between Bolivia and the Netherlands, where Aguas del Tunari’s majority shareholder, International Water, has been registered since 1999. (When Edison S.p.A. of Italy bought 50 percent of International Water in 1999, registration moved from the Cayman Islands to the Netherlands because Edison required a change of domicile.) The treaty names ICSID the arbiter of record."

Note to Bechtel’s PR Office: Is there any way possible that I could invoice you for the hours I have had to spend responding to the documentable lies you have told about your Bolivian misadventures? I have two kids headed for college in the next few years and I could really use the money.

Lies, damn lies and the truth-less spin of the World Bank and Bechtel. Tell your friends.