CS Chirchir defends Adani against claims of graft and tax evasion
By Maureen Kinyanjui |
But Gatanga MP Edward Muriu questioned Adani's compliance with governance standards.
Roads and Transport Cabinet Secretary Davis Chirchir has refuted allegations of corruption and tax evasion against Adani Limited, asserting that a government investigation found no evidence to substantiate these claims.
Speaking before the National Assembly on Wednesday afternoon, Chirchir said due diligence had confirmed Adani Airport Limited's clean record, with no bans or legal restrictions in any country over the past five years, including during the evaluation of its proposal to manage Jomo Kenyatta International Airport (JKIA).
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"Adani has not been involved in any corruption, is not insolvent, and has no issues with tax compliance in any jurisdiction. Their directors have not been convicted of any criminal offences related to professional conduct, nor have they been disqualified under any administrative processes," he told MPs.
Chirchir's defence follows a legal challenge by the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC), who are seeking a court order to halt the implementation of the Adani proposal.
The petitioners argue that leasing a strategic asset like JKIA to a private company is a poor financial decision, citing concerns about its viability and potential risks to the Kenyan economy.
The CS also revealed that a joint review by various government agencies, including the National Treasury, the Public-Private Partnership Directorate, and a transaction advisor (Ashitiva firm), had thoroughly assessed Adani's proposal and found it satisfactory.
However, Gatanga MP Edward Muriu questioned Adani's compliance with governance standards, challenging the Cabinet Secretary's statements.
"I have documents showing that Adani has been barred from doing business in Australia and India," he claimed, although he refrained from delving into details due to the ongoing court proceedings.
Other MPs, including Uasin Gishu Woman Representative Gladys Boss, criticised Muriu's claims and urged him to provide substantial evidence to support them.
"When assertions are made by a member, they must be proven," she said, cautioning against the potential impact of unfounded accusations on investor confidence.
Kimani Ichung'wah, the Majority Leader, also voiced his opinion, stating that the House records should not contain any unsubstantiated claims.
Homa Bay Town MP Peter Kaluma further criticised Muriu for spreading rumours without evidence, suggesting that such accusations could harm Adani's reputation and the country's broader investment prospects.
"If indeed Adani Airport had a problem in other countries, we as leaders should be alerted so that we can protect our deal," he said.
However, National Assembly Speaker Moses Wetang'ula ruled that the documents presented by Muriu lacked proper authentication and could not be accepted without further verification.
The controversy over the Adani proposal comes after Kenya's High Court temporarily blocked the deal, which would see the Indian multinational lease JKIA for 30 years.
The LSK and KHRC argue that the lease agreement is financially unfeasible, poses a risk to jobs, and does not provide value for money to taxpayers.
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