Relief to Adani? Trump pauses enforcement of foreign bribery law
Washington (PTI): US President Donald Trump signed an executive order directing the Department of Justice to pause enforcing a nearly half-century-old law that was used to launch a bribery investigation against the Adani Group.
Trump signed an order to pause enforcing of the 1977 Foreign Corrupt Practices Act (FCPA) that prohibits American companies and foreign firms from bribing officials of foreign governments to obtain or retain business.
The President directed US Attorney General Pam Bondi to pause enforcement of FCPA, which was at the heart of some of the US Department of Justice's most high-profile cases, including an indictment against Indian billionaire and Adani Group head Gautam Adani and his nephew Sagar.
Last year DoJ under President Joe Biden charged Adani for allegedly being part of a scheme to pay over USD 250 million (about Rs 2,100 crore) bribe to Indian officials in exchange of favourable terms for solar power contracts.
This was concealed from the US banks and investors from whom the Adani group raised billions of dollars for the project, the prosecutors had alleged last year citing FCPA that allows pursuing foreign corruption allegations if they involve certain links to American investors or markets.
The pause and the review is being seen as a relief to the Adani Group but it remains to be seen what stand the DoJ takes after the six month review period.
The order that Trump signed asked "the Attorney General to review guidelines and policies governing investigations and enforcement actions under the FCPA" in 180 days.
"During the review period, the Attorney General shall cease initiation of any new FCPA investigations or enforcement actions, unless the Attorney General determines that an individual exception should be made," it said.
Also it sought "review in detail all existing FCPA investigations or enforcement actions and take appropriate action with respect to such matters to restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives".
FCPA investigations and enforcement actions initiated or continued after the revised guidelines or policies are issued "shall be governed by such guidelines or policies; and must be specifically authorized by the Attorney General".
After the revised guidelines or policies are issued, the Attorney General shall determine whether additional actions, including remedial measures with respect to inappropriate past FCPA investigations and enforcement actions, are warranted and shall take any such appropriate actions or, if Presidential action is required, recommend such actions to the President, it added.
Last year, the DoJ had charged a former executive at renewable energy firm Azure, which was at the heart of a case accusing Adani of perpetrating a bribery scheme. The DoJ also brought a criminal indictment.
While Adani Group had called the charges "baseless", Azure said the former employees referenced in the charges had been "separated" from it for more than a year.
Separately, half a dozen US Congressmen have written to the new Attorney General against "questionable" decisions made by the US Department of Justice (DoJ) such as the indictment against the Adani Group in an alleged bribery scam, which "jeopardises the relationship with close ally India".
Lance Gooden, Pat Fallon, Mike Haridopolos, Brandon Gill, William R Timmmons and Brian Babin on February 10 wrote to Pamela Bondi drawing "attention to some questionable decisions made by the DOJ under the Biden administration".
"Some of these decisions involved selectively pursuing and abandoning cases, often acting against America's interests at home and abroad, jeopardizing relationships with close allies like India," the Congressmen said in the joint letter.
India, they said, has been an important ally of the United States for decades. This relationship has flourished beyond politics, trade, and economics by evolving into a continuous socio-cultural exchange between the world's two largest democracies.
"This historical partnership and continuous dialogue between friends, however, was put at risk due to some unwise decisions by the Biden administration," they said.
"One such decision involves a questionable pursuit of a case against the Adani group, an Indian company whose executives are situated in India. This case rests on the allegation that preparations were made by members of this company in India to bribe Indian officials, also exclusively located in India.
"Instead of deferring the case to the appropriate Indian authorities, the Biden DOJ decided to push forward and indict the company's executives without any real injury to US interests being present," they wrote.
The "selective pursuit" by the Biden DOJ, despite knowing the possible outcomes of such a reckless decision, requires a second look, they wrote, adding knowing the real considerations guiding this decision will also be a major step in uncovering whether the previous administration was compromised to outside entities over the past four years.
"We request you investigate the Biden DOJ's conduct and would appreciate you sharing with us all records pertaining to this case, for a coordinated effort in uncovering the truth," they added.
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Sujit Nair raises concerns over speculation of DMK-AIADMK understanding to block TVK
Chennai: Journalist and political commentator Sujit Nair has expressed concern over speculation that the Dravida Munnetra Kazhagam and the All India Anna Dravida Munnetra Kazhagam could explore a post-poll understanding to prevent Vijay-led Tamilaga Vettri Kazhagam from forming the government in Tamil Nadu.
In a social media post, Sujit Nair said the election verdict in Tamil Nadu reflected a clear public demand for political change and argued that the mandate should be respected irrespective of political preferences.
Referring to reports and political discussions surrounding a possible understanding between the DMK and AIADMK, he said he hoped such developments remained only speculative conversations and did not turn into reality.
Nair stated that if such an alliance were to take shape, it would raise serious questions about ideological politics in the country. He said TVK had emerged through a democratic electoral process and that the legitimacy to govern in a parliamentary democracy comes from the people’s verdict.
According to him, attempts to prevent an electoral winner from forming the government through unexpected political arrangements may be constitutionally valid, but many people could view them as politically opportunistic.
He further said that such a move could particularly affect the political image of the DMK, which has historically projected itself around ideology, social justice and opposition politics. Nair said that in ideological terms, the DMK appeared closer to TVK than to the AIADMK, and joining hands with its long-time political rival only to remain in power could weaken its broader political narrative.
He added that the same questions would apply to the AIADMK as well, as the party had spent decades positioning itself against the DMK and such an arrangement could create discomfort among its cadre and supporters.
Drawing a comparison with Maharashtra politics in 2019, Nair said he had expressed similar views when the Shiv Sena formed an alliance with the Indian National Congress and the Nationalist Congress Party after the Assembly elections.
He said post-poll alliances between long-standing political rivals often create a public perception that ideology and electoral mandates become secondary when political power equations come into play.
Nair also said such developments increase public cynicism towards politics and reinforce the belief among voters that ideology is often sidelined after elections.
He maintained that the Tamil Nadu verdict was emphatic and said respecting both the spirit and substance of the mandate was important for the credibility of democratic politics.
