The billionaire, alongside seven other associates, was accused of allegedly paying or planning to pay about $265 million (Ksh35 billion) in bribes to government officials to help attain billion-dollar contracts.
Indian billionaire and founder of the Adani Group of Companies, Gautam Adani broke his silence on the woes that bedevilled his companies. This followed the explosive allegations by the United States (US) government which many believed influenced the likes of Kenya to review contracts with the Indian conglomerate.
His remarks come days after US authorities indicted him over a $265 million bribery scheme in which Kenya cancelled two multi-billion deals with his companies. Adani, one of Asia’s richest men, saw his conglomerate gain global attention on November 20 after US prosecutors in New York charged him with conspiracy to commit securities fraud and duping investors.
The billionaire, alongside seven other associates, was accused of allegedly paying or planning to pay about $265 million (Ksh35 billion) in bribes to government officials to help attain billion-dollar contracts.
A collage of Adani Group CEO Gautam Adani and the logo of his company. /INDIA TODAY
His address at an awards ceremony in India on Saturday evening was therefore a personal statement touching on the matter. Adani had insisted that his conglomerate was committed to world-class regulatory compliance.
“Less than two weeks back, we faced a set of allegations from the U.S. about compliance practices at Adani Green Energy. This is not the first time we have faced such challenges.
“What I can tell you is that every attack makes us stronger. And every obstacle becomes a stepping stone for a more resilient Adani Group,” the 62-year-old said in the northern Indian city of Jaipur.
While reiterating the challenges his company was facing was “the price of pioneering”, Adani added, “In today’s world negativity spreads faster than facts. And as we work through the legal process, I want to reconfirm our absolute commitment to world-class regulatory compliance.”
Gautam Adani, his nephew and executive director Sagar Adani and the managing director of Adani Green (ADNA.NS), Vneet S. Jaain have been accused by U.S. authorities of an elaborate scheme to win business by paying hefty bribes.
Before Adani’s direct response, the group released an official statement in the wake of the explosive allegations by the US, terming them as ‘baseless’.
However, the statement did little to save what would befall them as the US indictment prompted other countries overseas to review their deals with Adani, a significant blow for the Indian firm.
For example, hours after the indictment, Kenya’s President William Ruto cancelled multimillion-dollar deals with the Adani Group for the modernisation of the Jomo Kenyatta International Airport (JKIA) valued at nearly $2 billion (Ksh259 billion) and energy projects. This, however, has done little to restore the faith of sceptical Kenyans, who want proof that Kenya has indeed severed ties with the Adani Group.
The deal was to see the Adani Group take over the airport for 30 years with a clause barring Kenya from constructing or expanding any airport to rival JKIA, guaranteeing Adani Group that no competition would arise.
A separate 30-year, $736 million (Ksh95.3 billion) public-private partnership deal that an Adani Group firm signed with the energy ministry in Kenya was also cancelled after its founder was indicted in the United States.
Similarly, a Sri Lankan government spokesperson said the country was reconsidering a 20-year deal with Adani, similar to that of Kenya. The deal involved the investment of over $440 million (Ksh57 billion) to develop 484 megawatts of wind power in the northeastern regions of Sri Lanka and develop a terminal in the Colombo port.
In the wake of the indictment, France’s TotalEnergies halted all investments in the Adani Group, serving yet another blow to the conglomerate.
President William Ruto speaking during his State of the Nation address in Parliament on November 21, 2024. /PCS
