Kenyan President William Ruto has canceled two major deals involving Indian billionaire Gautam Adani, after the tycoon was charged with fraud by US prosecutors.
In his state of the nation address on Thursday, Ruto said the agreements were withdrawn due to “new information provided by our investigative bodies and our partner countries”.
A day earlier, Mr Adani, India’s second-richest man, was charged with fraud by US prosecutors for allegedly orchestrating a $250m (£198m) bribery scheme and hiding it to raise money in the US.
Representatives of the Adani Group denied the allegations of the US prosecutors and called them “baseless”.
“Due to unquestionable evidence or concrete information about corruption, I will not hesitate to take drastic measures,” said Ruto in his speech which was met with great cheers in parliament.
The Adani Group was to invest $1.85bn in Kenya’s main airport to secure a 30-year operating contract, as well as a $736m deal with the energy ministry to build power lines.
Under the airport proposal, the development will include a new runway and an upgraded passenger terminal at the Jomo Kenyatta International Airport.
The deals with the Adani group were not popular in the country, and there were concerns about corruption.
The airline deal sparked a strike by 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 involved in the purchase of power lines.
President Ruto has pledged to take action against corruption, following repeated allegations against his administration.
Ruto said his government will now start looking at other competitors for the airport and power.
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