On Monday, US President Donald Trump signed an order that stops the Department of Justice (DoJ) from prosecuting American companies accused of bribing foreign officials to win business. This pause affects the Foreign Corrupt Practices Act (FCPA), which has been in place for nearly 50 years. Trump asked Attorney General Pam Bondi to look into past cases and create new guidelines for the law.
This decision comes just before Indian Prime Minister Narendra Modi’s visit to the US on February 12. During this trip, Modi will have talks with Trump.
Under President Joe Biden’s administration, a billionaire named Gautam Adani was accused of fraud and bribery while trying to secure contracts. Trump’s new order could change the focus on this case, potentially helping Adani.
Currently, the Justice Department was investigating whether Adani’s company broke the FCPA by bribing foreign officials. Now, with Trump’s decision, any investigations might be slowed down or weakened.
Hindenburg Research also accused Adani Group of dishonest stock practices and corrupt dealings. With the US backing off, it’s now up to Indian regulators like the Securities and Exchange Board of India and the Enforcement Directorate to decide if they will pursue the case further against Adani. If they choose not to, Adani might avoid facing serious problems.
While Trump’s decision could protect Adani from US charges, it doesn’t mean international eyes will look away. Investors and watchdogs in other countries will continue to pay attention to Adani’s business.
The allegations against Adani include claims that he and some executives bribed Indian officials to get contracts for solar power. This could lead to criminal charges if proven true. Adani’s group denied all accusations, saying they follow the law.
The Foreign Corrupt Practices Act (FCPA) prevents American companies from bribing foreign officials. It also requires them to keep accurate financial records.
Trump believes the FCPA makes it harder for US companies to compete globally, calling it a disaster for business. However, some experts argue that the law helps companies refuse bribes and maintain fair competition.
Leave a Reply