Tanzania has said it intends to honor its contracts with the Adani Group despite the US sanctions placed on its billionaire chairman Gautam Adani over accusations of bribery and fraud.
Gautam Adani was indicted for fraud last week and arrest warrants were issued for him and his nephew for their alleged roles in a $265 million scheme to bribe Indian officials to secure power-supply deals. Adani Group has denied the accusations.
Announcing the decision, Tanzania Ports Authority Director General Plasduce Mbossa said. “We don’t have any problems with anyone. Everything we are doing is according to our laws and agreements.
“For contracts we have, we don’t have such claims (of wrongdoing). If other people are taking action, they are doing so according to their reasons.” He concluded.
Adani Contracts in Tanzania
Contracts handled by Adani in Tanzania includes a 30-year concession agreement between the Tanzanian government and Adani Ports, a unit of Adani Group, to operate a container terminal in its Dar es Salaam port, known as Container Terminal 2.
Adani Ports also has a share purchase agreement for a 95% stake in state-owned Tanzania International Container Terminal Services for $95 million.
The fear of cancellations come after fellow East African country, Kenya recently cancelled two deals between its government and the Adani Group.
Kenya Cancellation of Adani Deals
Last week, Kenyan President William Ruto announced the cancellation of the country’s engagements with the Adani Group in the Energy & Transport sectors over the indictment of Gautam Adani by the US government.
The cancelled deals were the deal for Adani to build power transmission lines as well as a proposal to add a second runway at the Jomo Kenyatta international airport and upgrade the passenger terminal in exchange for a 30-year lease granted to Adani group.
