French oil major TotalEnergies SE will halt new investments in the Adani Group till the accusations against those accused and their consequences are clear.
The company clarified in a statement on November 25 it was unaware of a United States regulatory investigation into possible bribery and corruption at Adani Green Energy (AGEL). TotalEnergies holds close to a 20 per cent stake and a seat on the board of directors in AGEL.
“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. 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 company statement said.
It added, “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.”
Further, on its JV with Adani, it added, “Until such time when the accusations against the Adani group individuals and their consequences have been clarified, Total Energies will not make any new financial contribution as part of its investments in the Adani group of companies.”
Also sharing the press statement, Kenya airport whistleblower Nelson Amenya took at a jab at the Adani group's troubles, saying “When it rains it pours!!”
On November 21, US prosecutors charged eight people, including billionaire Gautam Adani, his nephew Sagar Adani and the company’s managing director Vneet Jaain, among others, for bribery.
They allege that between July 2021-2024, the accused promised and made improper payments to Indian officials for business advantages, Reuters reported.
Total purchased its stake in AGEL January 2021 just months before the bribery is alleged to have begun, the report added. The French giant also has a 37.4 per cent stake in Adani Total Gas and 50 per cent stake in three renewable joint ventures with AGEL — two of which were entered into after the FBI served search warrants on Sagar Adani and seized evidence related to AGEL, it added.
Analysts at Bernstein Research estimate TotalEnergies' financial exposure to Adani firms at between $4-5 billion, or around 3 per cent of capital employed.
(With inputs from Reuters)
