Nairobi [Kenya], November 21 : The Kenya government on Thursday cancelled the procurement process for the expansion of a key international airport - an announcement that has implications for the Adani Group, reports Reuters
This announcement comes close on the heels of US Prosecutors indicting Gautam Adani and others in an alleged bribery case. While addressing the nation during a joint sitting of the parliament, Kenyan President William Ruto directed the procurement agencies within the transport and energy ministries to immediately cancel the ongoing procurement process for the expansion of the Jomo Kenyatta International Airport in Nairobi and Kenya Electricity Transmission Company (KETRACO) deals and immediately commence the process of onboarding other partners.
"I now direct according to article 10 of constitution on transparency and accountability and based on new information provided by investigative agencies and partner nations that the procuring agencies under the Ministry of Transport and the Ministry of Energy are immediately cancelled for the procurement process of JKIA expansion as well as the recently concluded KETRACO deals," said Ruto as the Kenyan House broke into loud cheers.
Under the proposed deal to expand the Nairobi airport, the Adani group was to add a second runway and upgrade the passenger terminal. In September, a Kenyan court temporarily blocked a proposed airport lease deal.
In a separate deal, the Adani group had also signed a PPP deal with the Energy Ministry to construct Power transmission lines. Both the projects now stand cancelled.
Reuters quoted Energy Minister Opiyo Wandayi as saying that there was no bribery or corruption involved in the award of the transmission lines contract.
Earlier, the Adani Group strongly refuted bribery allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of the Adani Green terming them baseless.
Adani Group spokesperson, in an official statement, said all legal recourse will be taken. "The US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied," the statement read.
The group further highlighted a key aspect of the legal proceedings.
"As stated by the US Department of Justice itself, 'The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.' All possible legal recourse will be sought," the statement said.
Amid these allegations, Adani Green Energy also informed stock exchanges that its subsidiaries have decided to defer their planned US dollar-denominated bond offerings.
It said "In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings".
US prosecutors had charged Gautam Adani and others in an alleged Solar Energy contract bribery case. A five-count criminal indictment has been unsealed in the United States District Court for the Eastern District of New York, charging prominent Indian executives including Chairman of the Adani Group Gautam Adani by linking them to an alleged bribery and fraud scheme.