
Trump’s FCPA order, Congressmen’s letter: Is relief in sight for Adani?
While 6 Congressmen have written to US Attorney General against “questionable” decisions by the Biden DoJ, Trump has paused the enforcement of a key law
Two significant developments in the US may come as a relief to billionaire industrialist Gautam Adani, who has been charged by US prosecutors for allegedly bribing Indian officials to get favourable terms for solar power contracts.
In one, as many as six US Congressmen have written to the newly appointed Attorney General of the USA against “questionable” decisions made by the US Department of Justice (DoJ), including the indictment against the Adani Group, which “jeopardises the relationship with close ally India”.
In the other, US President Donald Trump signed an executive order on Monday (February 10) pausing the enforcement of a federal law that criminalises bribery of foreign officials by US businesses. The Foreign Corrupt Practices Act (FCPA) is the very law under which Adani has been charged.
What the Congressmen wrote
On Tuesday, Congressmen Lance Gooden, Pat Fallon, Mike Haridopolos, Brandon Gill, William R Timmons, and Brian Babin wrote to Pamela Bedi, Attorney General of the US, drawing “attention to some questionable decisions made by the DOJ under the Biden administration”.
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Adani has been charged by US prosecutors for allegedly being part of a scheme to pay over USD 250 million (about Rs 2,100 crore) in bribes to Indian officials in exchange for 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 have alleged. US law allows pursuing foreign corruption allegations if they involve certain links to American investors or markets.
The Adani group, however, has denied the charges.
‘Historical partnership’ with India ‘put at risk’
“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 US ally 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.
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“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.
‘Misguided crusade’
The Congressmen said there was no compelling reason to pursue a case in a manner that could complicate relations with an ally like India unless some external factors were at play.
“This misguided crusade came at the risk of harming our relationship with a strategic geopolitical partner like India immediately preceding President Trump’s return to the Oval Office.
“Considering President Trump’s commitment to revive America’s economic prosperity, our economic relationship with valuable partners from India and abroad works as an important factor in achieving that goal,” they said.
Also read: Adani prosecution: US Congressman demands preservation of all records
‘No real injury to US interests’
The letter went on to state that needless pursuits against those who have contributed tens of billions and created thousands of jobs deter and discourage investors from contributing to the US economy.
“Considering these factors and the lack of any real injury to US interests, the decision to pursue this indictment demonstrates more harm for America’s interests than good, if any,” it said.
The Congressmen stated that such “selective pursuit by the Biden DOJ, despite knowing the possible outcomes of such a reckless decision, requires a second look”. “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.
FCPA ‘a Jimmy Carter concept’: Trump
On the other hand, Trump, while signing the executive order on FCPA, said the law puts companies at a disadvantage on the global stage.
He ordered newly confirmed Attorney General Pam Bondi to immediately stop actions taken under the FCPA, including prosecutions of American individuals and companies the DoJ has charged with bribing foreign government officials with the aim to gain business in those countries.
“It sounds good on paper, but in practicality, it’s a disaster,” Trump said about the FCPA. “It means that if an American goes over to a foreign country and starts doing business over there, legally, legitimately or otherwise, it’s almost a guaranteed investigation indictment, and nobody wants to do business with the Americans because of it.”
He added: “It was a Jimmy Carter concept, and it sounds so good, but it’s so bad. It hurts the country and many, many deals are unable to be made because nobody wants to do business.”
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New guidelines to come
The White House has announced that all current and past FCPA-related actions will be reviewed, and all future FCPA investigations and actions will be governed by the revised guidelines issued by Bondi and require approval from her.
The White House fact sheet also said that US companies “are harmed by FCPA over enforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field”.
(With agency inputs)