TotalEnergies suspends investments into Adani Group after bribery charges

French oil company TotalEnergies has halted its investments in the Adani Group citing bribery allegations against Gautam Adani, the billionaire Indian industrialist.

In a press statement, TotalEnergies stated that its recent move is based on its code of conduct that rejects corruption in any form.

"TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as a minority (19.75 per cent) shareholder of Adani Green Energy Limited (AGEL) and as a joint-venture partner (50 per cent) in project companies with AGEL.

The Indian tycoon was mid-November indicted for fraud by U.S. prosecutors and arrest warrants were issued for him and his nephew for their alleged roles in a $265 million (Sh30b) scheme to bribe Indian officials to secure power-supply deals.

According to TotalEngergies, its investments in Adani's entities were undertaken in full compliance with applicable laws and with its own internal governance processes pursuant to due diligence and representations made by the sellers.

“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 French company stated.

However, the Adani Group maintains that the accusations as well as those levelled by the US Securities and Exchange Commission in a parallel civil case are baseless and that it will seek “all possible legal recourse”.

"The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied," the conglomerate said in a statement.

Last week, President William Ruto directed the Ministries of Transport and Energy to cancel the ongoing deals proposed by the Adani Group to take over the country's infrastructure in the energy and aviation sectors. 

According to Ruto, the decision was attributed to credible evidence from the relevant agencies and such deals could not continue with such insurmountable evidence. 

"In the face of undisputed evidence or credible information on corruption, I will not hesitate to take action," Ruto stated during his State of the Nation address.