An arrest warrant has been issued in the United States for Indian billionaire Gautam Adani and his nephew, Sagar Adani, following serious allegations of fraud and bribery.
The charges, brought by the U.S. Securities and Exchange Commission (SEC), accuse them of defrauding investors and bribing officials.
The charges come in connection with one of the world’s largest solar energy projects, and involve Gautam Adani, 62, alongside his nephew and six other co-accused.
The indictment was handed down by a grand jury in New York on Wednesday, November 20, with the accused facing charges of paying over $250 million (approximately sh32.4 billion) in bribes to Indian government officials, all while concealing these payments from investors.
The arrest warrant news comes shortly after President William Ruto halted major business dealings with the Adani Group.
In his State of the Nation Address, President Ruto announced the immediate suspension of the ongoing Public-Private Partnerships (PPP) between the Kenyan government and Adani Group,
Specifically those involving the takeover of Jomo Kenyatta International Airport (JKIA) and the Kenya Electricity Transmission Company (KETRACO).
The charges in the U.S. allege that Adani and his co-defendants used bribery to secure profitable solar energy contracts from the Indian government while misleading investors and banks to raise billions of dollars.
“This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to deceive investors and banks, and to obstruct justice,” said Deputy Assistant Attorney General Lisa Miller.
FBI Assistant Director James Dennehy added, “Adani and the other defendants defrauded investors by raising capital based on false statements regarding bribery and corruption, while attempting to cover up the conspiracy by obstructing the government’s investigation.”
The Adani Group had proposed two major projects in Kenya: a sh260 billion plan to modernize JKIA over 30 years and a Ksh95 billion initiative to enhance the country’s transmission lines.
Both projects were part of a PPP arrangement with the Kenyan government.
However, President Ruto’s decision to cancel these contracts was based on new information from local investigative agencies and international partners.
“The procuring agencies within the Ministry of Transport and the Ministry of Energy and Petroleum immediately cancel the ongoing procurement process for the JKIA Expansion Public-Private Partnership transaction, as well as the recently concluded KETRACO transmission line Public-Private Partnership contract, and immediately begin the process of onboarding alternative partners,” said President Ruto.
Despite the cancellation, Energy Cabinet Secretary Opiyo Wandayi defended the Kenya-Adani partnership, asserting that no evidence of wrongdoing had been found in relation to the local projects.
Speaking to the Parliamentary Energy Committee, Wandayi emphasized that the contracting authority had conducted thorough due diligence in compliance with the law.
In response to the U.S. allegations, Adani Group has strongly denied the accusations, calling them baseless.
The company has also stated that the allegations made by the U.S. Department of Justice and SEC against its directors are unfounded.
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