Let's talk about Indians

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Adani's Australian coal unit faces human rights complaint​

FILE PHOTO: A protester holds a sign as he participates in a national Day of Action against the Indian mining company Adani's planned coal mine project in north-east Australia, at Sydney's Bondi Beach in Australia, October 7, 2017. REUTERS/David Gray/File Photo

Nov 22, 2024

MELBOURNE - India's Adani Group, whose billionaire chairman has been indicted for fraud by U.S. prosecutors, is facing accusations of racism at its Australian coal unit after an Aboriginal group filed a complaint with the country's Human Rights Commission.

The Nagana Yarrbayn Wangan & Jagalingou Cultural Custodians in Queensland state said it filed a complaint alleging serious racial discrimination by the unit, Bravus Mining and Resources, earlier this week.

The complaint details how Adani employees sought to “verbally and physically obstruct and prevent” members of the Aboriginal group from accessing springs near Adani's Carmichael coal mine “in order to perform cultural rites and share cultural knowledge”, the group said in a statement.


“We have endured years of discrimination and vilification from Adani, and we’re not putting up with this anymore," Nagana Yarrbayn Senior Cultural Custodian, Adrian Burragubba said in the statement.

"Adani has been on notice about their conduct since our lawyers sent a concerns notice last year, and they refused to take action. Legal recourse is the only answer,” he added.

A Bravus spokesperson "wholly rejected" the group's allegations, saying it was an attempt to stop Bravus from telling its side of the story and "sharing facts with the public about our interactions with him and members of his ‘Family Council’."

It said the mine had been operating safely and responsibly in line with Queensland and Australian law and in partnership with the majority Traditional Owner group for the mining area under the terms of ratified Indigenous Land Use Agreements and Cultural Heritage Management Plans for more than two years.

It has not received any notification from the Australian Human Rights Commission of a complaint, it added.

A spokesperson said the Commission was unable to confirm if a complaint has been received until it had been publicly acknowledged by both the complainant and the respondent.

The Aboriginal group said it was seeking compensation, an apology, the removal of offending social media, a retraction of media statements, and anti-racism and cultural awareness training for Adani’s directors, managers and employees.

The Carmichael coal mine battled a seven-year campaign from climate activists and some Aboriginal groups before shipping its first cargo in December 2021.

Adani Group companies' shares fell for a second straight day on Friday after U.S. prosecutors charged chairman Gautam Adani in an alleged bribery and fraud scheme. REUTERS

 

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Adani shares extend losses after $44 billion rout on US charges​

Investors are also watching to see if more Adani deals could be scuttled in the wake of the indictments.PHOTO: REUTERS

Nov 22, 2024

Sydney – Stocks and bonds of India’s Adani Group dropped for a second day on Nov 22 after a US arrest warrant was issued for its billionaire founder Gautam Adani over an alleged US$265 million (S$356.7 million) bribery scheme.

Adani Green Energy, the company at the centre of the case, was down 8 per cent in early trade, and has lost a total of US$7 billion in market value since the news of the indictment. The conglomerate’s stocks have seen their combined market value fall by US$33 billion (S$44 billion).

US prosecutors have charged Adani and seven others with agreeing to pay bribes to Indian government officials to obtain contracts that could yield US$2 billion of profit over 20 years and to develop India’s largest solar power plant project.


Adani Group said the accusations levelled by US federal prosecutors and by the US Securities and Exchange Commission in a parallel civil case are “baseless and denied”, and that it will seek “all possible legal recourse”.

Adani Ports and Special Economic Zone debt maturing in 2027 traded at 91.5 cents on the dollar, down more than a cent on the day and more than 4 cents below Nov 20 prices.

Longer-dated maturities have fallen around 5 cents in two days and trade near 80 cents.

Ratings agency S&P warned in a statement that the group will need regular access to equity and debt markets given its large growth plans, but that access could now be hampered. “We believe domestic, as well as some international banks and bond market investors, look at Adani entities as a group, and could set group limits on their exposure,” it said.

S&P added it could lower the ratings on Adani Electricity, Adani Ports and an Adani Green Energy subsidiary if the companies started to face weakening funding access and increased funding costs.

Investors are also watching to see if more Adani deals are scuttled in the wake of the indictments.

Kenya has cancelled a procurement process worth nearly US$2 billion that had been widely expected to award control of the country’s main airport to the Adani Group. It also nixed a separate 30-year, US$736 million public-private partnership deal that an Adani Group firm signed with the energy ministry in October to construct power transmission lines.

“India’s renewable energy sector, a critical pillar for global climate goals, may face reduced international investment as a result of this controversy,” said independent analyst Nimish Maheshwari, who publishes on Smartkarma.

“Investors may demand greater transparency and due diligence, slowing down the pace of project financing.”

Adani Green also cancelled a scheduled US$600 million US bond sale.

US prosecutors say Adani, his nephew Sagar Adani and others bribed Indian officials to gain business advantages in renewable energy projects in India that benefitted Adani Green and a company called Azure Power, which was listed on the New York Stock Exchange until late 2023.

They are also accused of making misleading statements to the public, including US investors, despite being made aware of the US investigation in 2023.

The Adani Group is a major corporate presence in its home market. Still, Citigroup analysts estimate Indian banks’ exposure to the group is less than 1 per cent of total loans for most lenders. REUTERS

 

[Leckmichamarsch]

Can give your opinions on race as long as it is not offensive.

S'pore's approach in prohibiting offensive speech but not sharing of opinions on race, protects minorities: Shanmugam​

The approach gives greater protection for minorities by making it safe for them to speak about their experiences, said Home Affairs and Law Minister K. Shanmugam.PHOTO: ST FILE

Hariz Baharudin


JUL 5, 2021

SINGAPORE - Singapore's approach, in strictly prohibiting offensive speech on race, but not the sharing of opinions on these matters, gives greater protection for minorities by making it safe for them to speak about their experiences, said Home Affairs and Law Minister K. Shanmugam on Monday (July 5).

He added that if racially offensive speech by all is tolerated or allowed, it can be expected that more of such speech will be directed towards minority communities, who will then bear the brunt of it.

Mr Shanmugam was replying to Ms Raeesah Khan (Sengkang GRC), who had asked if laws against racist hate speech here are consistent with recommendations by the United Nations that state how measures to combat racist speech should not be used as a pretext to curtail expressions of protest.

Singapore's laws against racist hate and offensive speech are consistent with these recommendations, said the minister.

He said that under the Penal Code, it is an offence to commit acts that deliberately wound the racial feelings of any person, promote enmity between different racial groups, or conduct acts that are prejudicial to the maintenance of racial harmony.

"These laws apply equally to everyone, regardless of race," said Mr Shanmugam. He shared two incidents when such laws were used.

In the first, in January 2019, a Chinese man was charged under the Penal Code for deliberately intending to wound the racial feelings of the Malay population. The man had scrawled racist messages about Malays on walls in void decks and sheltered walkways in Geylang and Aljunied.

In the second, in June 2020, a Malay man who used a Twitter account with a Chinese name "@sharonliew86" to make racist remarks against people of different races was similarly charged.

While noting that a significant amount of discussion, commentary and sharing of experiences on race takes place, Mr Shanmugam said that Singapore takes a strict approach to offensive speech and hate speech.

This approach applies equally to all, regardless of majority or minority, which he said gives greater protection for minorities by making it safe for them to speak about their experiences, and to give their views.

Should racially offensive speech be tolerated or allowed, more of such speech will likely be directed towards minority communities, added Mr Shanmugam.

"That will ironically reduce the safe space for discussion of such issues, and increase minority community concerns for safety and security. These are not hypotheticals. This is what has happened in several other countries," he said.

"We need to be careful about changing what has worked reasonably well in Singapore (though it is not perfect), and replacing it with policies which have not worked so well, in other places."

In his reply, Mr Shanmugam also noted that the UN recommendations have similarly taken the view that the protection of people from racist hate speech is not incompatible and is not "simply one of opposition" against the freedom of expression.

The minister added that is not clear in Ms Raeesah's question if she is suggesting that whenever anyone claims to be protesting against "injustice, expressing social discontent, or speaking in opposition", they should be exempted from the Penal Code and be allowed to engage in hate or offensive speech.

The Ministry of Home Affairs has invited her to clarify this, said Mr Shanmugam.

it follows , we cannot talk about his stay in Govt subsidised housing

 

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ST Explains: What are the Adani indictments, and how do they affect S’pore’s financial sector?​

The indictment wiped out US$27 billion in market value in the listed companies under the Adani Group umbrella when it was first announced.PHOTO: REUTERS

Sue-Ann Tan
Nov 26, 2024

SINGAPORE - Indian billionaire Gautam Adani is one of the world’s richest people, heading the country’s largest conglomerate Adani Group, which in 2020 won a bid to supply eight gigawatts of electricity to a state-owned firm through its renewable energy arm, Adani Green Energy.

That deal was what Adani called the single largest solar development bid ever awarded.

But all this was called into question when US prosecutors alleged a bribery scheme in criminal and civil charges related to the bid, unsealed on Nov 20.

US prosecutors alleged that Mr Adani and seven others, including his nephew, promised to pay bribes to Indian government officials to win solar energy contracts.

The bribes are said to be over US$250 million (S$336.5 million) for solar contracts worth an estimated US$2 billion over 20 years. The prosecutors alleged that this plan was concealed as the group tried to raise money from US investors.

The Adani Group denied the charge, saying the allegations were “baseless”. It said it will seek all possible legal recourse to defend itself.

The indictment wiped out US$27 billion in market value in the listed companies under the Adani Group umbrella when it was first announced. The group has businesses spanning ports, airports, manufacturing and energy.

The saga has hit the global financial sector, affecting businesses like French oil firm TotalEnergies, which holds a stake in Adani Green Energy, as well as some 770 environmental, social and governance (ESG) funds that hold its shares.

Could lenders and investors have been forewarned of the crisis? What implications does it have on the financial sector here?

Investors exposed to Adani’s listed companies could feel a financial pinch if the shares lose market value as a result of reputational damage, said corporate governance expert Lawrence Loh. Professor Loh is the director for the centre of governance and sustainability at the National University of Singapore (NUS).

Adani Group saw some of its bonds being put on watch for a possible downgrade by ratings agency Fitch, Reuters reported on Nov 26.

Fitch said Adani Energy Solutions, Adani Electricity Mumbai and some of Adani Ports and Special Economic Zone rupee and dollar bonds are now on “watch negative”. Ratings on four Adani subsidiary senior unsecured US dollar bonds were downgraded from stable to negative, the agency added.

Governance advocate Professor Mak Yuen Teen of the NUS said banks that might have lent money to Adani companies run the risk of these firms being unable to service their loans due to loss of business or loss of access to capital.

It is unlikely the credit ratings of banks would be affected unless they have big exposures, he added.

But 770 ESG funds that hold Adani Green shares could see their holdings affected. According to Bloomberg, these funds oversee about US$400 billion and some of them are managed by the world’s largest asset managers.

ESG funds are investment funds that focus on companies that meet specific ESG criteria. ESG fund managers are expected to take extra measures to protect clients from risks. Such funds are also available to investors in Singapore.

Prof Mak said: “It is unfortunate that this case may be cited by opponents of ESG-investing to further push back against such investing.” He noted that Adani Green was doing rather well in most ESG ratings and that was why it was included as a component in many of such funds.

“The problem with ESG ratings is that by combining the E, S and G in one rating, poor corporate governance may be overshadowed by a company’s scores for other aspects – in Adani Green’s case, the ‘environment’ aspect,” he added.

“This is yet another example of why an assessment of a company’s sustainability must start with governance first... poor governance may ultimately still cause a company’s value to be destroyed.”

Prof Loh said: “The Adani case serves as yet another key lesson in the authenticity of ESG funds and the need for better global investment regulatory enforcement and coordination.”

So far, the local banking sector’s overall exposure to Adani Group is small, according to a Nov 25 statement by the Monetary Authority of Singapore.

Adani Group runs an edible oil and food business in India through a joint venture with Singapore-listed Wilmar International. Shares of Adani Wilmar, which is listed in India, have fallen since the indictment on Nov 20.

When contacted, Wilmar International declined to comment.

Aletheia Capital analyst Nirgunan Tiruchelvam is already reinforcing his sell recommendation on Wilmar International.

Wilmar International holds a 50 per cent stake in the Adani Wilmar joint venture, with Adani Enterprises holding the other 50 per cent. Mr Tiruchelvam noted that the two companies were planning to sell a minority stake in Adani Wilmar to comply with Indian securities laws.

“The sale would have involved selling a roughly 13 per cent interest in the company, which would have been valued at about US$736 million. The recent controversy may complicate and delay these plans,” he noted in a Nov 26 report.

It was reported in October 2022 that Adani was in early discussions with investors that included Temasek and Singapore sovereign wealth fund GIC to raise at least US$10 billion to fund Adani Group’s expansion into clean energy, ports and cement businesses.

Temasek has since let go of its positions in Adani. GIC declined to comment when contacted by ST.

Experts said the Adani case serves as a wake-up call to the finance sector and should prompt financial institutions to reassess their risk evaluation frameworks.

This is especially relevant to Singapore as a major Asian financial hub with significant exposure to emerging market investments, said Associate Professor Ben Charoenwong from Insead Singapore.

He said the finance sector can strengthen due diligence processes by integrating research with macro views, to understand underlying governance structures.

It can also develop an ESG evaluation framework that gives enough weight to governance factors, as well-governed firms usually deliver good performance for investors, as well as less negative social and environmental outcomes.

“Third, enhance cross-border cooperation in regulatory oversight. Given Singapore’s position as a global financial hub, taking the lead in developing stronger international governance standards could be beneficial for the entire sector,” he said.

Companies should be aware of the “herding mentality” whereby firms might feel that a very large company like Adani cannot possibly get into trouble. This mentality can be strengthened by the pressure on companies to engage in the green economy, he said.

“Moreover, as investors herd into the company, other foreign investors who may have less information are also less likely to go through their own costly due diligence process and instead follow the herd,” he said.

He noted that there were already negative reports about Adani group business practices.

“It’s akin to finding a hair in your soup. While one instance might not be immediately harmful or ruin that dish’s taste, it raises questions about the entire kitchen’s operations overall,” he said.