Civil society groups demand transparency over canceled Adani deals

Civil society groups demand transparency over canceled Adani deals

FILE PHOTO: The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad, India, January 27, 2023. REUTERS/Amit Dave

The U.S. Securities and Exchange Commission (SEC) has issued a summons to Indian billionaire Gautam Adani, following his indictment in the United States on bribery allegations. 

The summons, which requires a response within 21 days, targets Adani Group Chairman Gautam Adani and his nephew, Sagar Adani, for their alleged involvement in facilitating hundreds of millions of dollars in bribes.

As the Adani Group faces a significant legal battle in the U.S., civil society groups in Kenya, operating under the Okoa Uchumi umbrella, are demanding transparency over the cancellation of two major deals involving the conglomerate. 

The deals were scrapped by President William Ruto after the billionaire was indicted by U.S. prosecutors for fraud.

Two days after the announcement, civil society groups are calling for full disclosure of the details surrounding the canceled agreements. 

The Okoa Uchumi coalition claims that the deals were shrouded in secrecy and insists that Kenyans should be informed about the financial implications and the actions taken against those involved in the contracting process.

"If they do not resign, we call on the president, as he did in June and July, to dismiss those who hold executive offices and powers. If that doesn't happen, we urge Parliament to begin impeachment proceedings, particularly against the Cabinet Secretaries who played a role in facilitating the Adani deal," said Diana Gichengo, Executive Director of TISA.

Dr. Abraham Rugo, Executive Director of Bajeti Hub, echoed concerns about the long-term impact on the Kenyan public. 

"The president did indicate that these agreements should be withdrawn and alternative options pursued. We want to know what these options are, what they will cost, and what the implications are. The Kenyan people are underwriting public-private partnerships, and if these ventures fail, it is the taxpayers who will ultimately bear the cost," Dr. Rugo stated.

The civil society groups also criticized what they described as unsustainable borrowing and the mismanagement of public funds.

 Dr. Rugo highlighted that over 70% of the nation's tax revenue and 50% of the national budget are allocated to servicing debt, which outpaces funding for critical services like healthcare, education, and social protection. 

"This is clear evidence that the country is debt-trapped rather than being on a pathway to a sustainable economy," he added.

Wanja Maina, founder of Hummingbird, also voiced concerns about the rising tax burden on Kenyans. 

"If these arbitrary and exorbitant taxes continue, there won't be anyone left to tax. How are Kenyans supposed to make money and run their informal businesses?" she asked.

The Okoa Uchumi coalition has also called on the government to address what they term as "budgeted corruption" in government projects. 

The group emphasizes the need for greater accountability and transparency in the management of public resources to ensure that taxpayer money is used effectively and efficiently.

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