TotalEnergies halts investments into Adani after alleged corruption scheme
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by Admin
French energy giant TotalEnergies on Monday (25 November) has paused any new investments in the Adani group of companies, following announcements 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 firm added the indictment does not target AGEL itself, nor any AGEL related companies.
“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,” it said in a statement.
TotalEnergies, which is “not targeted nor involved in the facts described by such indictment”, said it will take all relevant actions to protect its interests as a minority (19.75%) shareholder of AGEL and as a joint-venture partner (50%) in project companies with AGEL.
“TotalEnergies recalls that its investments in Adani’s entities 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 company added.
In January 2021 TotalEnergies acquired a minority interest in the listed company Adani Green Energy Limited of which it now owns 19,75%. As part of its strategy to enhance its development in renewables in India through direct access to a portfolio of assets, TotalEnergies also has acquired 50% stake in 3 JVs operating renewable assets (AGEL23 in 2020, AREL9 in 2023, AREL64 in 2024).
It was reported that a US District Court in New York has indicted Adani Group Chairman Gautam Adani and several senior business executives for their alleged roles in a multi-billion-dollar bribery and investor fraud scheme.
Adani, 62, was charged with securities fraud and conspiracy to commit securities and wire fraud.
It was alleged that Adani and seven other senior business executives offered over USD 265 million in bribes to Indian government officials to secure solar energy contracts.
In a statement, Adani Group said the allegations by the US Department of Justice and the US Securities and Exchange Commission against the directions of Adani Green are “baseless and denied”.
It added all possible legal recourse will be sought.
Photo credit: Venti Views on Unsplash
Published: 26 November, 2024
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