Paris (AFP) – French energy giant TotalEnergies said Monday it was halting new investment linked to Indian conglomerate Adani, after the indictment of its billionaire founder on US bribery charges, an announcement which saw Adani Green shares lose 7.9 percent on the Indian stock market.
US prosecutors have accused tycoon Gautam Adani of paying more than $250 million in bribes to gain lucrative government solar energy contracts, to the detriment of US investors. The energy and infrastructure tycoon has rejected the accusations which came in a bombshell indictment in New York on Wednesday. It led to India’s opposition leader Rahul Gandhi demanding Adani’s arrest and Kenyan President William Ruto scrapping airport and electricity deals worth about $2.5 billion.
“TotalEnergies has learnt through public announcements made by the US authorities of the indictment of certain individual Adani group executives in relation to an alleged corruption scheme linked to the business of Adani Green Energy Limited (AGEL),” the energy group said in a statement. “This indictment does not target AGEL itself, nor any AGEL related companies.”
In accordance with its code of conduct, TotalEnergies rejects corruption in any form,” the group stated. “Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” the group went on.
TotalEnergies, one of the world’s leading independent energy companies, noted it had in January 2023 taken a minority stake in AGEL and a 50 percent holding in three AGEL renewable energy joint ventures. “TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as minority (19.75%) shareholder of AGEL and as a joint-venture partner (50%) in project companies with AGEL,” the group said.
The group stressed all of its investments linked to Adani were “undertaken in full compliance with applicable laws, and with TotalEnergies’ own internal governance processes pursuant to due diligence and representations made by the sellers.” In particular, TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme.
The rise of Adani, one of the world’s richest people, has been dogged by controversy — and allegations he benefited from his close ties to India’s Hindu nationalist prime minister Narendra Modi. Adani is India’s largest private port operator, and operates key airports including in the financial capital Mumbai and Ahmedabad, the biggest city in Modi’s home state of Gujarat.
The empire also spans coal, cement and media interests in countries ranging from Australia to Bangladesh, Bhutan, Israel, Sri Lanka, Tanzania and Nepal. The conglomerate weathered previous allegations of impropriety that wiped $150 billion from its market value in 2023, after a report by US short-seller Hindenburg Research accused it of “brazen” corporate fraud. Adani also denied those claims.
© 2024 AFP
