TotalEnergies has paused its financial contributions to the Adani Group amid a U.S. investigation into corruption. The company was unaware of the ongoing investigation at the time of its investment. Whistleblower Nelson Amenya commented on the adversity faced by Adani, whose executives have been indicted for bribery of Indian officials. TotalEnergies has significant stakes in Adani and regards India as a vital market for growth.
French oil giant TotalEnergies SE announced its decision to halt financial contributions to its investments in the Adani Group amid revelations of a U.S. investigation into corruption involving Adani Green Energy Limited. TotalEnergies, which holds a 20% stake and has a seat on the board of Adani Green Energy, stated that it was unaware of the investigation prior to the recent indictment of several individuals connected to Adani. The company suspended further financial commitments pending clarification regarding the allegations against the Adani Group.
Whistleblower Nelson Amenya commented on the situation, highlighting the extent of difficulties faced by the Adani Group. The U.S. prosecutors have charged eight individuals, including Gautam Adani and key executives, for engaging in improper payments to Indian officials for business advantages.
TotalEnergies acquired its stake in Adani Green Energy in January 2021, shortly before the alleged bribery commenced. Additionally, TotalEnergies possesses a significant equity share in Adani Total Gas Limited and multiple joint ventures with Adani Green Energy. These joint ventures were established after the FBI executed search warrants related to Adani Green Energy.
The French company views India as a critical market for its natural gas and renewable energy initiatives, particularly as electricity generation has seen significant growth post-pandemic. Notably, a substantial portion of TotalEnergies’ operational renewable assets derives from its participation in Adani’s wind and solar projects, constituting approximately 25% of its renewable portfolio.
TotalEnergies’ recent actions stem from a sprawling investigation into alleged bribery and corruption that has implicated various executives within the Adani Group. The allegations surfaced at a time when TotalEnergies had significantly invested in Adani’s renewable projects, highlighting the interconnectedness of international investments and ethical governance. As a key player in the Indian energy market, TotalEnergies’ response reflects wider implications for foreign investments in sectors experiencing legal scrutiny.
In summary, TotalEnergies has decided to suspend financial engagements with the Adani Group, driven by emerging corruption allegations that have led to criminal charges against several individuals connected to Adani. The situation underscores the complexities of maintaining a robust investment strategy in regions where legal issues may arise, especially in strategic energy markets like India.
Original Source: www.livemint.com
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