SECI’s Silence Amid Adani Bribery Allegations
Amidst the chaos surrounding the Adani bribery scandal, one key player’s silence is particularly noticeable – the Solar Energy Corporation of India (SECI). SECI, a central public sector undertaking, is at the center of the criminal and civil proceedings initiated by the US Department of Justice and the Securities Exchange Commission (SEC). Despite this, SECI has chosen to remain quiet, not taking any investigative actions or providing explanations about their involvement.
This silence has raised important questions about SECI’s role in the controversy, especially after Total Energies from France announced that they would not be making further financial contributions to the Adani Group. Following this statement, shares of Adani Green Energy Ltd saw an 8% decline, adding to an 11% drop previously. Total Energies also confirmed that they were unaware of the corruption investigation, supporting the charges brought forth by the US DoJ that the Adani Group failed to disclose being under investigation.
The allegations against Adani Green involve orchestrating a bribery scheme to secure power contracts. These contracts were crucial for the Adani Group’s aim of becoming the world’s largest private solar power producer. Adani Green raised $750mn through a corporate bond offering, with US investors contributing $175mn. The Adani Group is accused of making false declarations regarding compliance with anti-bribery laws under the Foreign Corrupt Practices Act.
The key to this bribery scheme involved Adani Green and Azure Global Power securing power purchase agreements with SECI, which required solar power developers to build plants capable of manufacturing solar components in India. These contracts promised significant profits for Adani Green and Azure, but only if SECI could convince state DISCOMs to purchase power at inflated tariffs for 25 years.
The involvement of SECI in agreeing to these high prices for solar power without clarity on viability or discussions with state governments is concerning. The process by which SECI reached this decision requires further investigation, especially since high solar power prices burden Indian consumers and businesses. Former Union secretary E.A.S. Sarma has questioned the Union government’s role in encouraging large centralised solar plants over decentralised systems, alleging corruption in the solar sector.
The allegations and charges surrounding the Adani bribery scandal shed light on the potential corruption and ethical issues within the solar industry. The lack of transparency and accountability in these dealings raises alarms about the integrity of such projects and their impact on the energy sector. The need for thorough investigations and regulatory oversight is crucial to ensure that such incidents do not undermine the growth and trust in renewable energy initiatives.
