New Delhi: The Adani Group’s involvement in a big port project in Sri Lanka has been getting a lot of attention lately, especially because of some bribery allegations. The U.S. International Development Finance Corporation (DFC) had promised a loan of $553 million for the Colombo West International Terminal, a deep-water port project. However, the DFC hasn’t released any money yet because they’re still doing checks to make sure everything meets their rules.
The DFC confirmed that the project is still not finalized, and they haven’t signed any loan agreement yet. They’re taking their time to make sure the project meets their integrity and compliance standards before moving forward with the funding.
This port project is seen as a key move by the U.S. to reduce China’s influence in Sri Lanka. It involves Adani Ports and SEZ Ltd., along with local companies like John Keells Holdings and the Sri Lanka Ports Authority, to improve trade and connections in the region.
There are also allegations of bribery, involving Gautam Adani, his nephew, and other top executives. The claim is that they paid about $250 million in bribes to Indian officials to secure solar power contracts. These allegations have raised some questions about the Adani Group’s business practices.
GQG Partners, a big investor in Adani companies with over $8 billion at stake, was surprised that the U.S. government is still considering funding projects linked to companies under investigation. They see it as a sign of support for Adani, despite the ongoing legal issues.
After the news broke, Adani Ports’ stock prices dropped, as investors are worried about how these allegations might affect future projects and funding.
The DFC hasn’t said yet whether they’ll pull out of the project or find other developers. They did say that while Adani Ports hasn’t been directly involved in the U.S. legal investigations, they’re still committed to high standards when it comes to their partnerships.
So, the situation is still unfolding, and the future of the project depends on the ongoing checks and investigations.
