Australian news, and some related international items

Adani Group embroiled in corrupt arms deal in South Africa

Adani embroiled in African corruption scandal arms deal, Michael West, June 13, 2017 The Adani Group has become embroiled in a corruption scandal in South Africa after a series of leaked emails revealed the Indian power company was in talks to do a weapons deal with the controversial Gupta family.

Adani Mining, which is behind the Carmichael mine – the world’s biggest new thermal coal project in the Galilee Basin in Queensland – is owned by Adani Enterprises. It is Adani Enterprises which has been identified in the leaked emails as being in discussions with the Gupta family to enter the arms business.

The unfolding scandal will lend further credence to calls that Adani should not pass the “fit and proper person” test and be granted large taxpayer subsidies to build its coal mine and railway in Australia.

Adani has been gifted an unlimited water licence by the Queensland government and a royalties deferral arrangement. The federal government, via its Northern Australia Infrastructure Facility (NAIF), is considering a $1 billion discount loan to a Caymans Islands-controlled Adani entity to build a railway line.

Several Australian government ministers have spoken favourably about the subsidies despite Adani companies and family members being embroiled in scandals in India in the past.

This latest scandal is bigger. ……..

The scandal in South Africa is likely to leave opponents of the Carmichael project even more unimpressed. One, Tim Buckley, director of IEEFA, told tonight, “Even without taxpayer subsidies the Adani project is a white elephant and, in oversupplying the seaborne thermal coal market, a market in structural decline, this mine is contrary to Australia’s national interest.

“I think this linkage to coal-corruption in South Africa and special deals with Modi’s government by Adani is a major credibility hit for Adani here, particularly as it relates to the probity of the NAIF subsidised loan and the Queensland royalty holiday, not to mention free water.”…..

June 14, 2017 - Posted by | Uncategorized

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