Adani Group defends JKIA takeover deal

Adani Group has denied claims that the proposed deal to take over Jomo Kenyatta International Airport (JKIA) in Nairobi was conducted in secrecy.

The company- one of India's largest conglomerates- argues that the allegations result from misinformation spread by certain vested interests and self-proclaimed activists with the intent of damaging its reputation.

In a detailed response to a story published by The Standard titled "Skeletons of Adani's Dark Past Exposed as JKIA Takeover Looms," Adani refuted parts of the story claiming to be accusations, calling them part of a coordinated campaign against the company.

The article had drawn from reports by the Australian Parliament, Bloomberg media, and other leading publications in Norway, India, and the USA, that accused Adani of various malpractices, including stock manipulation, environmental destruction, and human rights abuses.

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“It has become increasingly apparent that a group of publications is working with a clear agenda to malign the reputation of the Adani Group,” the company said in a statement released through Oxygene, a local media firm handling its communications.

The statement also claimed that the publications, operating both in India and internationally, have developed a "playbook" to execute a smear campaign against the group.

Adani came under the spotlight in Kenya after reports surfaced that the company had been contracted by the Kenyan government to take over the management of JKIA for 30 years. This move, according to the Adani proposal, has been seen as a step toward monopolizing the aviation sector in Kenya, in a deal blocking Kenyans and the government from the development of a new airport for the next three decades.

This proposal overrides Vision 2030’s goals, preventing the upgrade of Kenya's 38 airports, including Mombasa, Kisumu, and Eldoret, keeping them stagnant. Adani will also enjoy tax exemptions, land access, and the power to set and collect fees while the government bears all financial risks.

In the deal, Adani has demanded a fund be established by the Kenyan government to cover any damages should the JKIA deal be terminated, regardless of the circumstances.
Additionally, the deal reportedly included provisions that would require the government to handle all existing litigation regarding the land at JKIA, while Adani would be responsible for any future disputes.

Despite the mounting criticism, Adani defended its intentions, stating that its role would be limited to managing and refurbishing the airport, rather than expanding it.
“An additional runway is not required until the end of the concession period in 2054,” the company said in the PIP, further arguing that its involvement would ensure better management and improved services at JKIA.

The company also dismissed the allegations made in the Hindenburg Research Report, which had accused Adani of using tax havens and carrying excessive debt. The report had initially caused significant negative sentiment around the group, but Adani claims that these accusations have since been proven baseless.
“The report has been dismissed by the Supreme Court, the highest court in India, and the financial community, which has heavily investigated us,” Adani stated.

Adani also emphasized that several sovereign and government entities from countries such as Japan, France, the US, UAE, and Qatar have made significant investments in their businesses.

The company pointed out that leading global rating agencies, including S&P, Fitch, and Moody’s, have upgraded their businesses, debunking the myth of high levels of debt.

“As a short seller, the Hindenburg Research Report was nothing but a malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive,” the group added.

The company also addressed the controversy surrounding Adani’s environmental record in Australia. In Australia, the group has faced criticism for allegedly causing environmental destruction, including illegal land clearing and destruction of protected mangroves.

A report filed with the Australian Parliament painted a grim picture of environmental devastation linked to Adani’s activities. However, Adani has rejected these allegations, describing them as recycled and false claims made by a small number of Australian politicians aligned with the anti-fossil fuel movement.

“We wholly reject the recycled and false allegations about the Adani Group published in The Standard on 6 August 2024,” the company stated. “These false claims were made many years ago by a small number of Australian politicians as part of a long-running campaign of misinformation and green lawfare to try to stop the Carmichael coal mine in the Australian state of Queensland, which has been safely and responsibly exporting coal for more than two years now.”

Adani also responded to allegations regarding labour exploitation and underpayment of its workforce, stating that these claims were unfounded and lacked authenticity.
“The allegation that labour was paid US$160 a month in 2013—more than twice India’s minimum wage then and 50% more than Kenya’s present minimum wage—is unfounded,” the company said.

Adani accused its haters of sensationalism and spreading misinformation, stating that such tactics harm the organization and mislead stakeholders.

“Sustainability is fundamental to the Group, shaping our approach to nation-building,” Adani’s spokesperson added. The company emphasized that all its partnerships and initiatives prioritize sustainability, aligning with the United Nations' Sustainable Development Goals (SDGs).

The company stated that its feasibility report outlined the proposed model of implementation, technical and financial liabilities, implementation timelines, and the public benefits of expanding JKIA.