Wed Nov 27 10:28:47 UTC 2024: ## US Delays Funding for Adani-Linked Colombo Port Project Amidst Corruption Allegations
**Colombo, Sri Lanka/New Delhi, India – November 27, 2024** – The US International Development Finance Corporation (DFC) has announced it is delaying the disbursement of a $553 million loan to the Adani-controlled Colombo Western International Terminal (CWIT) project in Sri Lanka. This decision follows recent indictments by the US Department of Justice (DoJ) and Securities and Exchange Commission (SEC) alleging bribery and corruption involving Adani Group executives.
The DFC stated it is conducting further due diligence to ensure the project meets its “rigorous standards,” raising questions about the future of the project. Sri Lanka’s government has said it is taking the indictments “very seriously” and will make a final decision after receiving a report from its Foreign and Finance Ministries.
The delay casts a shadow on the Adani Group’s involvement in the project, which was touted by the company as a testament to its governance. The DFC’s loan commitment was previously cited by Adani and its investors as a mark of international confidence. However, the indictments, which include charges against Adani Group CEO Gautam Adani and his nephew, allege a significant bribery scheme involving Adani Green Energy.
This is not an isolated incident. The Adani Group is facing scrutiny in several countries. A Bangladesh court has ordered an inquiry into an Adani power project, Kenya has cancelled deals with the group, and France’s TotalEnergies has paused further investment in an Adani project. The Adani Ports’ operations in Israel are also facing challenges.
While the DFC maintains that the allegations do not directly implicate Adani Ports & Special Economic Zones Limited (APSEZ), the entity involved in the Colombo port project, the fact that Gautam Adani is named in the indictments and heads both the implicated Adani Green Energy and APSEZ creates significant uncertainty. The Sri Lankan government, under President Anura Kumara Dissanayake, who campaigned on an anti-corruption platform, is expected to make a decision on the project’s future shortly. The first phase of the CWIT’s construction is nearing completion, with the terminal scheduled to receive its first ship in February 2025. However, the DFC’s action significantly jeopardizes this timeline. The Hindu has reached out to the Adani Group and relevant government agencies for comment, but has yet to receive a response.
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