Adani Group Discredits US Govt Over Indictment In Ksh32 Billion Scandal

In a short, sharply-worded statement on Thursday, November 21, Indian firm Adani Group denied bribery charges by the United States (US) government after its founder Gautam Adani and several directors were indicted in the United States on a Ksh32 billion ($250 million) bribery case.

Adani, an Indian-based conglomerate, penned an instant letter responding to the charges levelled by the US Department of Justice (DOJ) and the US Securities and Exchange Commission, terming the allegations against the directors of Adani Green as baseless and denied.

“As stated by the US Department of Justice itself, “the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought,” the company replied.

The conglomerate further argued that it carried out its business practices ethically and would uphold its highest standards of governance.

“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws,” the letter added.

Adani and other executives were indicted in New York on Wednesday, November 21 by US prosecutors for their alleged roles in a yearslong, multi-million-dollar bribery and fraud scheme involving plans to develop a major solar power plant. The Department of Justice (DOJ) said in a statement that Adani, a key ally of Indian Prime Minister Narendra Modi, and seven other executives, including his nephew Sagar Adani, promised more than $250 million in bribes to Indian government officials to secure solar energy contracts.

According to a report by CNN, the impact of the allegations, which come more than a year after a US short-seller accused Adani Group of stock manipulation and accounting fraud, was immediately felt across the sprawling conglomerate. On Thursday, shares in the group’s listed firms fell between 10% and 20%, wiping out just under $30 billion (Ksh3.9 trillion) in total market value according to Reuters data.

The DOJ alleged that the solar energy supply contracts were projected to raise more than $2 billion (Ksh259 billion) in profits after tax over an approximately 20-year period.

Authorities stated that Adani, 62, personally met with an Indian government official to “advance” the scheme, which took place between 2020 to 2024. The defendants frequently met and allegedly discussed the bribery scheme, including evidence on several phones.

“This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” Deputy Assistant Attorney General Lisa Miller said in the statement, adding “These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of US investors.”

Right after the indictment caused uproar in Kenya, Energy Cabinet Secretary Opiyo Wandayi stated that the developments would not affect the Kenya Electricity Transmission Company Limited (KETRACO) deal with Adani Energy Solutions. Appearing before the Senate Committee on Finance on Thursday, November 21, Wandayi argued that the indictment of Adani in the bribery case was not connected to the deal.

In October 2024, Wandayi announced the signing of a 30-year deal between KETRACO and Adani Energy Solutions to develop, finance, construct, operate, and maintain key transmission lines and substations across the country.

According to the CS at that time, the Ksh95.68 billion deal would address the persistent power blackouts, as well as ensure power reliability.

Energy CS Opiyo Wandayi during a familiarisation visit to Kenya Power on September 5, 2024. /OPIYO WANDAYI