Adani's legal fortunes rise? Trump eases US anti-bribery law enforcement

World News: President Donald Trump has paused enforcement of the Foreign Corrupt Practices Act (FCPA), a move touted as boosting American competitiveness but criticized as potentially enabling corruption.The decision has ignited discussions about the role of the U.S. in combating international bribery and raised questions about its potential impact on ongoing investigations, including those involving the Adani Group.

Trump's Executive Order

President Donald Trump signed an executive order on Monday, February 10, directing the Justice Department to halt prosecutions of Americans accused of bribing foreign officials to secure or retain business. The order suspends enforcement of the nearly 50-year-old Foreign Corrupt Practices Act (FCPA) and instructs Attorney General Pam Bondi to review current and past decisions related to the law and issue new enforcement guidelines. Trump has long criticized the FCPA, calling it a "horrible law" that puts American companies at a disadvantage. He stated that the world is "laughing at us" for enforcing it, arguing that it discourages businesses from dealing with Americans due to the risk of investigation and indictment. The White House maintains that FCPA over-enforcement harms US companies because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field.

Global Reactions and Concerns over Corruption

The decision has been met with mixed reactions. The White House argues that this move will restore American competitiveness and security by stopping excessive FCPA enforcement. However, anti-corruption watchdogs like Transparency International have stressed that the U.S. became a leader in addressing global corruption by enforcing the FCPA. Critics like Richard Nephew, a former anti-corruption coordinator at the State Department, argue that most U.S. companies appreciate the FCPA because it allows them to firmly refuse bribes.

Potential Impact on Adani Group

The move has sparked particular interest due to its potential implications for the Adani Group, which has faced allegations of fraud and bribery. The U.S. Justice Department was reportedly investigating whether the Adani Group violated the FCPA, with allegations of bribing Indian state government officials to secure solar power contracts. With Trump pausing prosecutions under the FCPA, any ongoing or potential investigations into Gautam Adani in the U.S. could be delayed or weakened. Hindenburg Research's accusations against the Adani Group, including potential corrupt dealings with foreign officials, could also see stalled legal action in the U.S.. While the Adani Group has denied the allegations as baseless and affirmed its compliance with all laws, this move could shield them from U.S. legal troubles.