The recent bribery scandal involving Gautam Adani and his associates has escalated after US prosecutors filed charges against them. This situation has caused major financial setbacks for the Adani Group, especially after Kenyan President William Ruto announced the cancellation of proposed contracts with the company. On November 21, President Ruto announced that he ordered an end to the procurement process for a project to expand the main airport in Kenya, which was under consideration for a proposal from the Adani Group. He also instructed the cancellation of a contract exceeding $700 million that the energy ministry had signed with a subsidiary of the Adani Group for building power transmission lines.
In his statement, President Ruto said, “I have directed agencies within the ministry of transport and the ministry of energy and petroleum to immediately cancel the ongoing procurement,” explaining that the decision was based on "new information provided by investigative agencies and partner nations." In October, Adani Energy Solutions had entered into a 30-year, $736 million public-private partnership with the Kenya Electrical Transmission Company, but that contract was halted by a court the same month. Gautam Adani, the chairman of the Group, was indicted by US prosecutors for allegedly participating in a $265 million bribery scheme involving Indian officials. The Adani Group has denied these accusations, labeling them as "baseless." The indictment has also highlighted various disclosures made by Adani Group companies.
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Despite these challenges, Kenya's energy minister, Opiyo Wandayi, stated on November 21 that the contract awarded to Adani Energy Solutions for the power line project did not involve any bribery or corruption. Wandayi stressed the legitimacy of the deal, saying, “There has been no case of corruption or bribery as far as the Privately initiated proposal with Adani Energy Solutions is concerned.”
What is the matter?
US prosecutors have charged Gautam Adani, his nephew Sagar Adani, who is a director at Adani Green, and six others with alleged bribery and fraud related to renewable energy projects in India that benefited both Adani's company and Azure Power, which was publicly traded on the NYSE until late 2023. Additionally, Adani and his executives are accused of providing false and misleading information to US investors and lenders regarding the company's commitment to anti-bribery measures while securing funding. As a result of these developments, Adani Group companies have lost around $27 billion in market value following the charges.
On Wednesday, US authorities revealed that Adani and seven other defendants, including his nephew Sagar, allegedly agreed to pay about $265 million in bribes to Indian officials for contracts expected to generate $2 billion in profits over the next 20 years and to develop India's largest solar power project.