Adani: Sly Indian deal maker who excited Kenya's top leadership

Adani Group Chairman Gautam Adani. [AFP] In Nairobi boardrooms, Gautam Adani was regarded as a visionary, a partner capable of transforming Kenya's infrastructure and addressing critical gaps in the country's energy and aviation sectors. Yet, on the global stage, Adani's reputation is sharply contested, with mounting allegations of corruption and fraudulent business practices. Adani's company, the Adani Group, is the subject of an ongoing investigation by the United States Department of Justice, with accusations of bribes exceeding $250 (Sh32 billion) million promised to Indian government officials to secure lucrative solar energy contracts. "As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from the US and international investors," states United States Attorney Breon Peace. "My Office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets," Peace says. The charges against Adani and his top executives have drawn international condemnation and have sent shockwaves through the business world, causing a 10-20 per cent drop in the group's share price, wiping away billions in value. "This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice," stated Deputy Assistant Attorney General Lisa Miller. "These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S investors. The Criminal Division will continue to aggressively prosecute corrupt, deceptive, and obstructive conduct that violates U.S law, no matter where in the world it occurs." Despite the scandal, Kenyan leaders, from President William Ruto to opposition figures like Raila Odinga, appeared to defend the partnerships with Adani despite mounting public skepticism. Speaking to The Standard in an interview, Nelson Amenya, the whistleblower of Adani deals in Kenya, explained that Adani was heavily protected in the country and that this put his life in danger. "Two police officers visited my family home. I have been summoned by DCI and there are many things those in power protecting Adani deals have done to put my life at risk," Amenya told the Standard. Adani, born in Ahmedabad, Gujarat, in 1962 and a Jain adherent, has cultivated an image as a business mogul who has revolutionised industries in India. His rise from a small-time diamond trader to one of Asia's wealthiest men is a narrative that many admire, especially in his home country. The Adani Group operates across sectors as diverse as energy, ports, logistics, and mining, with a market cap that soared to over $242 billion in 2022. "Adani Group consists of 10 publicly listed entities with a combined market capitalisation of over $242.73 billion (as of August 29, 2022) with businesses spanning energy, ports & logistics, mining & resources, gas, defence & aerospace, and airports. The Group has established a leadership position in India in each of its business areas," Adani says on the group's website. But that vision has been shadowed by persistent accusations. In 2023, Hindenburg Research, a short-seller firm, accused Adani of engaging in stock manipulation and financial fraud, allegations that were vehemently denied by the Adani Group. Adani, however, continues to stand by his innocence, with his legal team labeling the charges "baseless" and dismissing them as politically motivated attacks, in a statement sent to CNN. "The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws," said a spokesperson for the group. Despite the international firestorm surrounding Adani's business empire, Kenyan leaders have embraced him as a key partner. The most significant of these partnerships is the just cancelled deal for Adani to overhaul Jomo Kenyatta International Airport (JKIA) in Nairobi. The deal was fashioned as a broader Public-Private Partnership (PPP) agreement, under which Adani Group would modernise Kenya's primary international gateway, a move the government had said would have boosted tourism, streamline operations, and stimulate the economy. India's Congress Party slammed the proposed 30-year deal for Adani to manage Jomo Kenyatta International Airport. Spokesperson Jairam Ramesh warned mid this year that the plan, which sparked a workers' strike disrupting East Africa's busiest airport, could incite anger against India. "This is a matter of grave concern for India, because the non-biological PM's [Narendra Modi] friendship with Mr Adani is now globally well known. The protests can therefore easily convert into anger against India and the Indian government," Ramesh was quoted as saying. "Today, the PM's collusion with the Adani group has contributed to the diminishing of this strength and unprecedented reversals for India on the global stage, just one of the many sacrifices the country has had to make at the altar of the non-biological PM's special friendship," the spokesman of the opposition party added. Raia, who has long been an advocate for transparency and good governance, shocked many when he took a notably more supportive stance on Adani's involvement in Kenyan projects. While he acknowledged concerns over the secrecy surrounding the negotiations, he argued that the PPP model was essential for Kenya, given its current debt load. "We all have misgivings about how the current proposed PPP concerning JKIA and power distribution have been processed, which has resulted in the raging debate over the involvement of the Indian firm in the airport and energy sector projects. Unfortunately, these misgivings have also resulted in a lot of misinformation regarding the investors who have made the PPP proposals," Raila said in a statement supporting the deal. Raila's defense of Adani's airport project came amid growing controversy, particularly regarding the lack of public participation and transparency in the deal-making process. According to reports, key government officials from the National Treasury visited Adani's headquarters in Ahmedabad, India, in early 2024, to negotiate terms for the transmission PPPs, without the usual scrutiny and public consultation. "Engage in discussions with the PPP directorate and Adani Energy Solutions to facilitate the implementation of their transmission PPPs," Controller of Budget Margaret Nyakang'o stated in the National Government Budget Implementation Review report for FY 2023/24 The move sparked outrage, particularly among opposition leaders like Kisii Senator Richard Onyonka, who labeled the Adani agreements as another example of "fiscal mismanagement" and exploitation of taxpayers. "We told them that everything about Adani was not straight and Kenyans have stood with us. You can see they have celebrated after the government cancelled," Onyonka said yesterday, adding: "Now moving forward, any charges arising after the signing must be paid by those who signed, not the government." Onyonka is not alone in his criticism. Many Kenyans are uneasy with the speed at which Adani's proposals were being rubber-stamped by the government. An investigation by The Standard newspaper into two separate feasibility reports, one commissioned by Kenya Airports Authority (KAA) and another by Adani Group, raised alarm over the potential financial burden that could be placed on the public. The study commissioned by KAA estimated a cost of Sh211 billion ($1.63 billion) to upgrade JKIA's facilities, while Adani's proposal inflated the cost to Sh238 billion ($1.9 billion), a difference of Sh27 billion. "We are happy with Amenya. We should protect him as patriotic Kenyans," Onyonka said. A report by the global consulting firm ALG, commissioned by KAA, recommended a more competitive and transparent bidding process for the JKIA project, but these recommendations were ignored in favour of a more expedited process. ALG's report highlighted that JKIA required a massive investment of $1.277 billion, a figure that could easily escalate if the government opts for the terms in Adani's proposal, which would see the Indian conglomerate take over not just the terminals, but also the maintenance and operation of the entire airport for the next 30 years.

Adani: Sly Indian deal maker who excited Kenya's top leadership

Get Full Access for Ksh299/Week.

Related Topics

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

DIGGER JOBS

Digger Motors

Digger Real Estate

Adani: Sly Indian deal maker who excited Kenya's top leadership

Get Full Access for Ksh299/Week.

Related Topics

Trending Now

Popular this week

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS