Kenyan President William Ruto has canceled two major deals involving Indian billionaire Gautam Adani after the tycoon was charged by US prosecutors with fraud.
In his State-of-the-Nation address on Thursday, Ruto said the deals had been canceled based on “new information provided by our investigative agencies and partner countries”.
The day before, Mr Adani, India’s second-richest man, was charged with fraud by US prosecutors for allegedly orchestrating and concealing a $250 million bribery scheme to raise money in the US.
Representatives of the Adani Group have denied US prosecutors’ allegations, calling them “baseless.”
“In the light of undisputed evidence or credible information on corruption, I will not hesitate to take decisive action,” Ruto said in a speech that was met with loud cheers within parliament.
The Adani Group would invest $1.85 billion in Kenya’s main airport in return for a 30-year contract, as well as a $736 million deal with the Ministry of Energy to build power lines.
According to the airport proposal, the upgrades would include a new runway and an improved passenger terminal at the Jomo Kenyatta International Airport.
The deals with the Adani group were deeply unpopular in the country and there were concerns about corruption.
The airport deal led to a strike among airport workers in September as many feared it would lead to job losses.
Energy Minister Opiyo Wandayi told a parliamentary committee on Thursday that there was no bribery or corruption in the purchase of the electricity lines.
President Ruto has promised to take action against corruption following repeated allegations against his government.
Ruto said his government would now look for alternative partners for the airport and energy deals.
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