Kenya: CS Chirchir Defends Adani Against Graft, Tax Evasion Claims

Nairobi — Roads and Transport Cabinet Secretary Davis Chirchir has refuted claims of corruption and tax evasion surrounding Adani Limited, stating that a thorough government investigation has found no evidence to support such allegations.

Speaking on the floor of the National Assembly, Chirchir told Members of Parliament (MPs) that due diligence had confirmed that Adani Airport Limited had not been debarred by any country in the five years prior to the initiation of its privately initiated proposal.

This comes after a case was filed by the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC), who have sought a court order prohibiting the implementation of the Adani proposal for the management of Jomo Kenyatta International Airport (JKIA) until the matter is resolved.

The petitioners argue that leasing a strategic and profitable asset like JKIA to a private entity is irrational.

“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 offenses related to professional conduct, nor have they been disqualified under any administrative disbursement processes,” Chirchir said.

The Cabinet Secretary revealed that a joint effort by several government agencies, including the National Treasury, the Public-Private Partnership Directorate, and a transaction advisor (Ashitiva firm), had thoroughly evaluated Adani’s proposal.

Shred of Evidence

Chirchir was responding to concerns raised by Gatanga MP Edward Muriu, who questioned Adani’s compliance with good governance, integrity, transparency, and accountability in the proposed transfer of JKIA’s management.

“I am extremely surprised by the Cabinet Secretary’s assertions that Adani has no corruption cases anywhere in the world and that it has complied with taxes. I have documents that I can submit to the House showing that Adani has been barred from doing business in Australia and India,” Muriu countered.

However, Muriu, a first-time lawmaker, indicated he would refrain from discussing the specifics of the case, citing the ongoing court proceedings.

“The facts presented by the Cabinet Secretary are not accurate, and there may be a need for further clarification. However, as this matter is before the court, we cannot discuss it in detail. I will submit the papers before the House,” Muriu said.

Uasin Gishu Woman Representative Gladys Shollei criticized Muriu for raising concerns about Adani without presenting substantive evidence to back up his allegations.

“When assertions are made by a member, they must be proven. You should have written to the Ministry of Foreign Affairs to clarify the correct position with those countries. The precedent we are setting could chase away investors, and this country doesn’t have the money for these investments,” Shollei remarked.

Majority Leader Kimani Ichung’wa urged that any unsubstantiated evidence regarding Adani Airport Limited be expunged from the House records, stressing the importance of basing allegations on verified facts.

“He should table the document and not show us WhatsApp messages. What MP Muriu is verifying are just things he is Googling on his phone. We should remove these assertions from Hansard, as debates in the House must be grounded in facts,” Ichung’wa said.

National Assembly Speaker Moses Wetangula ruled that the documents presented by Muriu lacked proper authentication and could not be accepted.

“Hon. Muriu, these papers have no authentication and no indication of where they are coming from. For now, I will disallow them. If you find a way to authenticate their source, content, accuracy, and veracity, then we can consider them,” Wetangula stated.

Homa Bay Town MP Peter Kaluma also criticized Muriu, arguing that without evidence to back the claims of criminal wrongdoing, such accusations could damage the reputation of Adani, a firm with a history of delivering substantial projects in other countries.

Sign up for free AllAfrica Newsletters

Get the latest in African news delivered straight to your inbox

Success!

Almost finished…

We need to confirm your email address.

To complete the process, please follow the instructions in the email we just sent you.

Error!

There was a problem processing your submission. Please try again later.

“If indeed Adani Airport had a problem in other countries, we as leaders should be alerted so that we can protect our deal and secure our national interests. This rumor-mongering is unfortunate,” Kaluma noted.

“If you cannot substantiate the claims you have made, they must be expunged from the record of the House. The person making the allegations should withdraw and apologize. It is unfortunate that MP Muriu, a serious lawyer, would come to this House with newspaper cuttings from Wamnunyoro,” Kaluma added.

Last month, Kenya’s High Court temporarily blocked a proposed deal for India’s Adani Group to lease JKIA for 30 years in exchange for its expansion. The LSK and KHRC argue that the lease is financially unviable, threatens jobs, poses a fiscal risk, and does not offer taxpayers value for money.

ADVERTISEMENT