Indian billionaire Gautam Adani, the Chief Executive Officer of Adani Group, was indicted on November 20 by a federal grand jury in the United States.
The charges, brought against him and other executives, allege that they paid over $250 million (approximately Ksh32.4 billion) in bribes to Indian government officials, while concealing these payments from U.S. investors.
Adani’s business interests extend beyond India. Notably, he has become a favored investor for the Kenyan government in various sectors. His company has secured several key deals, including in the transport and energy sectors.
These include the proposed upgrading of Jomo Kenyatta International Airport (JKIA) — which is still awaiting approval — as well as a signed agreement with Kenya Electricity Transmission Company (KETRACO) for the construction of transmission lines and sub-stations.
Additionally, there have been hints at other potential Public-Private Partnership (PPP) investments in Kenya.
The recent indictment also reveals that Adani, along with the other accused, is alleged to have made illegal payments to secure lucrative solar energy contracts with the Indian government between 2020 and 2024.
“The defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars,” Breon Peace, US Attorney for the Eastern District of New York, said in a statement.
The court documents outline the conspiracy began in 2020 when Ranjit Gupta and Co-Conspirator #2, along with Gautam Adani, his family members, and other associates, allegedly conspired to bribe Indian government officials.
Adani indicted
According to the documents, the purpose of these bribes was to secure contracts with state-run electricity distribution companies in India through SECI (Solar Energy Corporation of India).
Between 2021 and 2022, additional individuals joined the conspiracy, allegedly working together to conceal the bribery scheme from U.S. authorities.
This included obstructing investigations by U.S. agencies such as the FBI, the SEC, and a grand jury in New York.
Also Read: Court Gives Way Forward on Adani-JKIA Case
In parallel to the bribery activities, the Indian Energy Company and its subsidiaries is alleged to have sought to raise funds to support their operations through significant financial transactions.
“In or about and between 2020 and 2024, in order to fund its operations, the Indian Energy Company and certain of its subsidiaries engaged in a series of financial transactions, including obtaining more than $2 billion of United States-dollar denominated bank loans from international financial institutions and United States-based asset management companies and offering more than $1 billion in securities underwritten by international financial institutions and marketed and sold to investors in the United States,” the court documents read.
During these transactions, the Adani Group and its leadership, including Gautam Adani, his brother, and an executive are accused of misleading U.S. investors by making false statements and omitting crucial information.
Specifically, they allegedly misrepresented the company’s anti-bribery commitments and concealed the bribery scheme from investors.
JKIA Deal
The development comes after Transport Cabinet Secretary Davis Chirchir assured Members of Parliament that the government conducted thorough due diligence on Adani Group, which the High Court has temporarily barred from assuming control of JKIA.
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Chirchir while appearing before a parliamentary committee stated that Adani Group has not been involved in any acts of corruption, its directors have clean criminal records, and the company is fully tax compliant.
“Adani has not been barred by any country, has no history of corruption based on our due diligence, is solvent, and is tax compliant in all jurisdictions where it operates. Its directors have not faced criminal convictions related to professional conduct within the last five years and have not been disqualified due to any administrative suspension or debarment proceedings,” Chirchir told Parliament.
Also Read: Ruto Breaks Silence on Adani-KETRACO Deal, Reveals Billions It Will Save Kenyans
Adani Group has already secured a deal with the government of Kenya in the Energy sector.
Energy Cabinet Secretary Opiyo Wandayi on October 11 announced that KETRACO) and Adani’s subsidiary-Adani Energy Solutions Limited had inked a Ksh95.68 billion Project Agreement
CS Wandayi said the signing of the agreement marked the conclusion of a long-negotiated process that had been ongoing.
KETRACO deal
The CS also highlighted that KETRACO conducted comprehensive due diligence on Adani Energy Solutions as the project proponent, along with thorough stakeholder engagement, before signing the agreement.
Wandayi noted that this ensured that all concerns have been addressed, and the project is primed for successful execution.
However, the project deal suffered a setback following a ruling by the High Court.
Justice Bahati Mwamuye on October 25 issued conservatory orders suspending the implementation of the Ksh95.68 billion deal following a petition filed at the court.
A Mombasa-based non-governmental organization (NGO) petitioned the high court to stop KETRACO and the Energy and Petroleum Regulatory Authority (EPRA) from awarding electricity transmission infrastructure contracts to Adani Energy Solutions Limited.
The Commission for Human Rights and Justice (CHRJ) in the petition was also seeking the two state agencies be ordered to share information about the deal as required in Article 35 of the constitution and provisions of Access to Information Act.
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