The Kenyan government has announced the cancellation of a multi-million dollar deal with Adani Group following allegations of bribery and fraud leveled against the conglomerate by US authorities, as reported by news agency Reuters. Kenyan President William Ruto disclosed the decision on Thursday, stating that he had directed the termination of a $700 million contract for constructing power transmission lines.
Additionally, Ruto ordered the cancellation of a procurement process to expand Jomo Kenyatta International Airport, which included a proposal from Adani Group.
The move comes as Adani Group faces legal troubles in the United States. US prosecutors recently indicted Adani executives, including founder Gautam Adani, on charges of orchestrating a $265 million bribery scheme. The indictment alleges that the group conspired with executives of a former New York-listed company to bribe Indian officials and secure lucrative solar energy contracts.
Adani Group Denies Allegations
Adani Group has strongly denied the charges. In an official statement, a spokesperson for the conglomerate dismissed the allegations as “baseless,” highlighting the presumption of innocence until proven guilty.
“The allegations made by the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) against directors of Adani Green are denied. As stated by the DOJ, the charges are merely allegations, and the defendants are presumed innocent unless proven otherwise. All possible legal recourse will be sought,” the spokesperson said.
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The group reaffirmed its commitment to maintaining high standards of governance, transparency, and regulatory compliance in all its operations, assuring stakeholders and employees of its dedication to the law.
On Thursday, all Adani Group stocks, including Adani Enterprises, Adani Energy Solutions, Adani Ports, and Adani Green Energy, experienced steep declines, with losses of up to nearly 23 per cent.
US Indictment Details
The charges, filed in a Brooklyn court, accuse Gautam Adani, Sagar R. Adani, and Vneet S. Jaain of orchestrating a $250 million bribery scheme to secure solar energy contracts in India. Prosecutors allege that the group misled US investors and banks, concealing critical information while securing billions in funding for their solar energy projects.
The alleged scheme sought to generate $2 billion in profits through fraudulent practices, including making false statements to investors and violating US federal laws.
Implications for Adani Group
The indictment has placed Adani Group under intense international scrutiny, potentially jeopardising its global ventures. While the group has denied the charges, the fallout has already impacted its operations in Kenya, with President Ruto’s administration signalling a zero-tolerance policy toward corruption.
This development adds to the challenges faced by Adani Group, which has been under the spotlight for its business practices and governance standards in recent years.
