2024-11-25 12:28:00
While the head of the Indian conglomerate Adani and his nephew are indicted for acts of corruption alleged by the American federal justice, TotalEnergies declared, this Monday, that it would not make any new financial contribution within the framework of the investments it holds in common with it.
« Until the accusations against the directors of the Adani group 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 », announced the company in a press release published this Monday.
Reputational risk
Fearing a reputational blowback, the French group “ recalls that its investments in the entities ofAdani were carried out in compliance with applicable laws and with its own internal governance processes (and that it was) not informed of the existence of an investigation into the alleged corruption ».
TotalEnergies specifies that in January 2023 it acquired a minority stake in the listed company Adani Green Energy Limited (Agel), of which it now holds 19.75%. It also acquired a 50% stake in 3 joint ventures with Agel, an operator of renewable assets.
« The indictment does not target the Agel company itself, nor any company linked to Agel (…) TotalEnergies, which is neither targeted nor involved in the facts described in this indictment, will take all necessary measures to protect its interests as a minority shareholder (19.75%) of Agel? and as a partner (50%) in joint ventures with Agel “, indicated the group.
Corruption case
In the details of the case, Gautam Adani, 62, is suspected of having participated in the payment of 250 million dollars in bribes to Indian officials to obtain solar energy contracts in India, in to the detriment of investors in the United States. The Adani group on Thursday denied these accusations, describing them as “ baseless ”, and promised to challenge them in court.
This is not the first scandal involving the company. In 2023, the Adani group was accused of “ shameless manipulation » prices of its own shares and “ accounting fraud over several decades » by the American investment company Hindenburg Research.
Gautam Adani had rejected these accusations, but his group had seen its stock market value cut by more than 150 billion dollars, and his personal fortune melted by 80 billion dollars. The tycoon, India’s second-richest, and his company have since offset a large part of these losses.
Indian Prime Minister in turmoil
The new affair once again throws into trouble the Adani empire, a group whose activities extend from coal mines and renewable energies, to ports and airports and even the media. The multi-billionaire is considered close to Hindu ultranationalist Prime Minister Narendra Modi.
Opposition leader Rahul Gandhi once again accused the businessman on Thursday of having taken advantage of his relationship with Narendra Modi, like him from the state of Gujarat (northwest), to build his fortune by winning markets unfairly. He demanded “ immediate arrest » by Gautam Adani, and accused the Prime Minister of “ protect him ».
(With agencies)
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#TotalEnergies #freezes #financing #Indian #giant #Adani
What are the implications of the Adani Group’s bribery allegations for international business partnerships?
**Interview on the Adani Group Corruption Allegations and TotalEnergies’ Response**
**Host:** Welcome to our segment on recent global business news. Today, we’re joined by Dr. Anika Patel, an expert in corporate governance and international business ethics. We’ll discuss the serious allegations against India’s Adani Group and the implications for its partnerships, particularly with TotalEnergies. Welcome, Dr. Patel.
**Dr. Patel:** Thank you for having me.
**Host:** To start, could you summarize the accusations against Gautam Adani and his nephew regarding corruption and bribery?
**Dr. Patel:** Certainly. The U.S. federal justice system has indicted Gautam Adani and his nephew on accusations of paying approximately $250 million in bribes to Indian officials. These payments were allegedly made to secure solar energy contracts, which raises significant concerns about corruption and the integrity of business practices within the energy sector, especially considering the interests of U.S. investors [[1](https://www.reuters.com/legal/what-are-us-findings-related-gautam-adanis-bribery-charges-2024-11-21/)].
**Host:** That’s quite alarming. How has this situation impacted TotalEnergies’ commitments to the Adani Group?
**Dr. Patel:** In light of these accusations, TotalEnergies has stated that it will not make any new financial contributions to its investments with the Adani Group until the allegations are resolved. They emphasized that their past investments were conducted in accordance with applicable laws and their internal governance processes, which reflects their concern about reputational risk amid these serious allegations [[1](https://www.reuters.com/legal/what-are-us-findings-related-gautam-adanis-bribery-charges-2024-11-21/)].
**Host:** TotalEnergies also mentioned that their investments in Adani Green Energy Limited are not directly implicated in the indictment. How does this affect their strategy moving forward?
**Dr. Patel:** Yes, that’s correct. TotalEnergies holds a minority stake of 19.75% in Adani Green Energy and has a 50% stake in several joint ventures with them. TotalEnergies has indicated that they will take necessary measures to protect their interests as a shareholder, while asserting that the entities they are involved with are not directly implicated in the charges. This tactical withdrawal from new investments is a way for TotalEnergies to manage potential fallout from the ongoing investigations [[1](https://www.reuters.com/legal/what-are-us-findings-related-gautam-adanis-bribery-charges-2024-11-21/)].
**Host:** The implications of this case could be significant for both Adani and TotalEnergies. What broader impacts do you foresee on corporate governance and international partnerships in similar sectors?
**Dr. Patel:** This situation underscores the critical importance of transparency and ethical conduct in global business operations. Companies will likely become more vigilant in their partnerships and due diligence processes, especially in sectors like energy that are heavily regulated and scrutinized. Furthermore, we could see an increasing reliance on compliance programs and governance frameworks that ensure adherence to anti-corruption laws to mitigate reputational damage and legal risks stemming from such allegations [[1](https://www.reuters.com/legal/what-are-us-findings-related-gautam-adanis-bribery-charges-2024-11-21/)].
**Host:** Thank you, Dr. Patel, for your insights into this complex situation. We’ll continue to monitor the developments in the Adani case and its implications for international business practices.
**Dr. Patel:** Thank you for having me. It’s important to keep a close watch on corporate governance issues like these.
**Host:** That concludes our interview for today. Thank you to our viewers for tuning in.
—
This interview format provides an informative overview of the current situation involving the Adani Group and TotalEnergies, emphasizing the complexity and potential consequences of the ongoing allegations.