Gautam Adani’s name is in the global newsreels for the wrong reasons again; this time, New York prosecutors are pursuing him for allegedly bribing Indian government officials with US$250 million to secure solar energy contracts.
Gautam Adani plus other top executives of the renewable energy company, including Sagar R Adani and Vneet S Jaain, were hoping to bag the contracts worth US$2 billion between 2020 and 2024.US prosecutors said that the renewable energy company also raised more than U$3 billion in loans and bonds during this period based on false and misleading statements.An arrest warrant has already been issued by a US court for Gautam and Sagar Adani and prosecutors will request foreign law enforcement to bring them to justice.
“As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and… lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” US Attorney Breon Peace said in a statement.
Adani is also facing parallel charges in the US filed by the Securities and Exchange Commission (SEC). The regulator accused Adani and his associate companies for violating laws governing the stock market, seeking to impose sanctions and fines on the Indian conglomerate. Adani runs a dozen companies all over the world, most notable being operating airports and ports, as well as investing into the renewable energy sector.
Gautam Adani, 62, is one of the richest men in the world, with a net worth of US$69.8 billion according to Forbes. The indictment comes one year after Adani was accused of large-scale fraud and stock manipulation by short-seller investment firm, Hindenburg Research. Although Adani vehemently denied the claims, the accusation shed off his net worth by US$65 billion and slashed more than US$100 billion of his companies’ market value.
All these controversies have piqued the attention of Kenyans who have questioned Adani’s interest in the country. This year alone, the government has secretly entered into PPP deals with Adani on two different mega projects. Adani Energy Solutions signed an agreement with the Kenya Electricity Transmission Company Limited (KETRACO) to develop, finance, and maintain key power infrastructure in Kenya intending to invest more than US$700 million.
On the flip side, Adani Airport Holdings proposed a US$1.84 billion investment in JKIA’s renovation and modernization, in which the company would operate the busiest airport in the region for 30 years and retain an 18% equity in perpetuity.
Both deals have faced backlash from Kenyans because they are shrouded in mystery. The public is also aware of Adani‘s portfolio in other countries like Bangladesh and India itself, casting doubt on whether a company soiled in the corporate cesspool deserves to be entrusted with key national infrastructure. It is also unclear how the conglomerate plans to recoup their investments and many Kenyans fear it will be an expensive affair dealing with the Adanis.
A week ago, Transport Cabinet Secretary told the National Assembly that Adani was not implicated in corrupt dealings – citing that no evidence has been provided to support the claim. Kenya Kwanza MPs, most notably Gladys Boss Shollei and Kimani Ichung’wa, supported Chirchir and demanded the unsubstantiated claims be struck off from House records.
“Adani has not been involved in any corruption, is not insolvent, and has no issues with tax compliance in any jurisdiction. Their directors have not been convicted of any criminal offenses related to professional conduct, nor have they been disqualified under any administrative disbursement processes,” Chirchir said.
Opposition Party Chief Raila Odinga, who has been known in the past as a rabid critic of secretive government deals, defended Adani as a reputable company with investments in prosperous projects. He even claimed he met Gautam Adani during a state visit to India during the Grand Coalition government.
“When I was the Prime Minister of Kenya, I was introduced to Adani by Prime Minister Narendra Modi, who was then Chief Minister of Gujarat,” Raila recalled, as he described how the Adani Group turned a swamp in the Asian country into an industrial hub which included a port, power plant and overall industrial hub,” Raila Odinga said.
A month later, Raila’s statement praising Adani’s ethic plods through the bog of unending controversy. After a whistleblower revealed that the JKIA was being leased off to Adani, Kenyans suspected that for such a ‘sour’ deal to go through as seamlessly as it had, certain senior state officials had been bribed. No evidence can establish this yet, but the possibilities are glaring. Both deals are currently halted by court orders after aggrieved petitioners cited that no public participation or competitive bidding was done.