Kenya Cancels Adani Deal Over Ksh.34 Billion Bribery Accusations
Adani Group’s Chief Financial Officer Jugeshinder Singh has firmly denied allegations from U.S. authorities accusing Chairman Gautam Adani and other executives of involvement in a Ksh.34 billion bribery scheme. The Indian government has also stated it has not received any formal request from the U.S. regarding the matter.
“We reject all of this strongly on behalf of the individuals,” Singh declared during an event in Mumbai. He expressed absolute certainty about the group’s innocence, adding, “If we were paying that amount of cash to someone, I would certainly know.”
The accusations, which involve Adani, his nephew Sagar Adani, and Adani Green’s managing director Vneet S. Jaain, claim they conspired to pay bribes to secure solar power supply contracts in India. However, Singh reiterated the conglomerate’s earlier stance, describing the allegations as “baseless” and promising “all possible legal recourse.”
While the group itself does not plan to take legal action against the U.S. indictment, Singh noted that the accused individuals would address the allegations within 10 days after consulting their legal teams. Despite the gravity of the claims, Singh assured stakeholders that the group’s investment and expansion plans in logistics and energy remain unaffected. “No planned acquisition will be on hold,” he confirmed.
Indian Government’s Response
India’s foreign ministry, addressing the allegations for the first time, emphasized that the matter was a legal issue between private parties and the U.S. Department of Justice. “There are established procedures and legal avenues in such cases which we believe would be followed,” said ministry spokesperson Randhir Jaiswal, adding that India had not been informed in advance about the indictment.
The allegations have triggered political debates in India, with opposition parties accusing Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) of shielding Adani from domestic investigations. Both the BJP and the government have denied these accusations, asserting that the law will take its course.
Market and Global Fallout
The indictment’s impact has been significant. Adani Group’s shares initially lost about Ksh.4.4 trillion in value but have since recovered, with total losses now standing at Ksh.906 billion. Adani Green Energy, the company at the heart of the allegations, saw its shares surge nearly 22% on Friday.
The ripple effects extend beyond India. At least one Indian state is reconsidering its power deal with the group, while France’s TotalEnergies has suspended further investments. Additionally, Adani Green shelved a Ksh.77 billion bond issue, opting instead for a private placement of Ksh.64 billion planned for February. Indian banks are also reassessing their exposure to the group.
On the global stage, Adani Group has received backing from countries like Israel, where it holds significant investments, and from Abu Dhabi’s International Holding Company, a major foreign investor.
Kenyan Developments
In a related development, Kenya canceled a Ksh.259 billion procurement project that would have granted Adani control of the country’s main airport. Additionally, a Ksh.95 billion public-private partnership deal was shelved.
Despite these challenges, Adani Group remains committed to repaying approximately Ksh.388 billion in debt over the next 12 months, primarily through rupee borrowings, Singh confirmed.
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Kenya Cancels Adani Deal Over Ksh.34 Billion Bribery Accusations
