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Kenya’s Darling Investor Gautam Adani Lands in Trouble in the US

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Gautam Adani charged in the US
US authorities said Adani and seven other defendants agreed to pay the bribes to Indian government officials to obtain contracts. (Photo: Arabian Business)
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Mr Gautam Adani, the billionaire chairman of Indian conglomerate Adani Group and one of the world’s richest people, has been indicted in New York over his role in a $265 million (Ksh34 billion) bribery scheme, according to US prosecutors, Reuters reports.

US authorities said Adani and seven other defendants, including his nephew Sagar Adani, agreed to pay the bribes to Indian government officials to obtain contracts expected to yield $2 billion (Kshh259 billion) of profit over 20 years and develop India’s largest solar power plant project.

The indictment will be closely watched in Kenya, where Mr Adani has caused ripples through his recent deals with the government. He is seen as a favourite investor for the Kenyan government in various sectors and his company has secured several key deals, including in the transport and energy sectors.

They include the proposed upgrading of Jomo Kenyatta International Airport (JKIA) and has as well signed an agreement with Kenya Electricity Transmission Company for the construction of transmission lines and sub-stations.

Additionally, there have been hints of other Public-Private Partnership (PPP) in the works in Kenya. A judge has issued arrest warrants for Gautam Adani and Sagar Adani and prosecutors plan to hand those warrants to foreign law enforcement, court records show.

Prosecutors also said the Adanis and another executive at Adani Green Energy, former CEO Vneet Jaain, raised more than $3 billion (Sh389 billion) in loans and bonds by hiding their corruption from lenders and investors.

Gautam Adani, Sagar Adani and Jaain were charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy, and the Adanis were also charged in a US Securities and Exchange Commission civil case.

> Personal Care Products Maker Splashes Ksh100 Million to Tap Luxury Market

Written by
BILL YAURA -

Bill Yaura is a Correspondent for Business Today. He can be reached on email: [email protected]

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