ADANI SCANDAL SHAKES GLOBAL SCENE: U.S. CHARGES ROCK KENYA AND INDIA

The embattled Adani Group has been thrust into the global spotlight yet again, as its CEO Gautam Adani and seven senior executives face indictment in the United States over a staggering $250 million (approximately Ksh32 billion) bribery scheme. Just a week prior, Kenya’s Transport Cabinet Secretary Davis Chirchir defended the Indian conglomerate, vouching for its integrity before Parliament and refuting allegations of corruption.

Kenyan Government’s Defence of Adani

On November 14, Chirchir assured Kenyan lawmakers that the Adani Group was above reproach. “Adani has not been barred by any country, has no history of corruption based on our due diligence, is solvent, and is tax compliant in all jurisdictions where it operates,” he declared confidently. He also emphasised that the directors of Adani had no recent criminal convictions or disqualifications.

The timing of Chirchir’s defence has become glaringly ironic in light of the U.S. Department of Justice’s (DOJ) explosive charges. The indictment alleges that the Adani Group orchestrated a scheme to bribe Indian government officials to secure lucrative green energy contracts while misleading U.S. investors.

Details of the Indictment

Deputy Assistant Attorney General Lisa Miller announced that the DOJ had unearthed a sophisticated corruption network that funnelled bribes to Indian officials from 2020 to 2024. The goal was clear: manipulate state energy supply contracts to benefit the group’s Adani Green subsidiary, raking in a projected $2 billion (approximately Ksh259 billion) in profits over two decades.

The DOJ’s case is bolstered by substantial evidence, including:

• Documents detailing bribe amounts.
• Digital evidence, such as cellphone data and PowerPoint presentations used to track the scheme.
• Testimonies from whistleblowers privy to the inner workings of the corruption.

The charges extend beyond the green energy bribery scandal, implicating Gautam Adani, his nephew Sagar Adani, and another executive in a separate $175 million (approximately Ksh22 billion) scheme linked to fraudulent contracts in India.

Kenya’s JKIA Deal Under Scrutiny

Adani’s woes have amplified criticism of Kenya’s controversial negotiations over the Jomo Kenyatta International Airport (JKIA). The potential 30-year contract would hand over operational control of the airport to the Adani Group, sparking public outcry.

Since the whistleblower revelations, lawsuits have surfaced worldwide accusing Adani of fraudulent activities. Despite these allegations, Chirchir has consistently defended the government’s due diligence process, dismissing concerns as unfounded.

A Questionable Track Record

Adani’s troubles are not new. The group has faced accusations of environmental violations, labour exploitation, and opaque financial dealings. However, the U.S. charges mark a significant escalation, directly implicating Adani’s leadership in criminal activities.

Critics in Kenya have questioned why the government continues to engage with a company under such intense international scrutiny. “This is not just a Kenyan issue,” remarked one opposition MP. “This is about protecting our nation’s reputation and ensuring public resources are not mismanaged.”

Implications for Kenya and Beyond

The indictment raises serious questions for Kenya’s leadership:

1. Was due diligence compromised? The government’s insistence on Adani’s clean record now appears questionable.
2. What are the risks of proceeding with the JKIA deal? If signed, the contract could expose Kenya to significant reputational and financial liabilities.
3. Will public trust erode further? Kenyans are increasingly sceptical of deals perceived as opaque or tainted by corruption.

Adani’s Response

The Adani Group has denied all allegations, labelling them as politically motivated attacks. In a statement, the company claimed, “We remain committed to transparency and ethical business practices. These charges are baseless and will be vigorously contested in court.”

Kenya at a Crossroads

For Kenya, the Adani scandal is more than just a corporate controversy; it is a test of governance and accountability. As the story unfolds, the government will face mounting pressure to revisit its partnerships and reassure citizens that public interests come first.

Will Kenya sever ties with Adani to preserve its reputation, or will it double down on its defence of the embattled conglomerate? Only time will tell.

Stay tuned for updates on this unfolding saga.