Tump signed an order to pause enforcing of the 1977 Foreign Corrupt Practices Act (FCPA) that prohibits American companies and foreign firms from bribing officials of foreign governments to obtain or retain business.
The President directed US Attorney General Pam Bondi to pause enforcement of FCPA, which was at the heart of some of the US Department of Justice’s most high-profile cases, including an indictment against Indian billionaire and Adani Group head Gautam Adani and his nephew Sagar.
Last year DoJ under President Joe Biden charged Adani for allegedly being part of a scheme to pay over $250 million (about Rs 2,100 crore) bribe to Indian officials in exchange of favourable terms for solar power contracts.
This was concealed from the US banks and investors from whom the Adani group raised billions of dollars for the project, the prosecutors had alleged last year citing FCPA that allows pursuing foreign corruption allegations if they involve certain links to American investors or markets.
The pause and the review is being seen as a relief to the Adani Group but it remains to be seen what stand the DoJ takes after the six month review period.
The order that Trump signed asked “the Attorney General to review guidelines and policies governing investigations and enforcement actions under the FCPA” in 180 days.
“During the review period, the Attorney General shall cease initiation of any new FCPA investigations or enforcement actions, unless the Attorney General determines that an individual exception should be made,” it said.
Also it sought “review in detail all existing FCPA investigations or enforcement actions and take appropriate action with respect to such matters to restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives”.
FCPA investigations and enforcement actions initiated or continued after the revised guidelines or policies are issued “shall be governed by such guidelines or policies; and must be specifically authorized by the Attorney General”.
After the revised guidelines or policies are issued, the Attorney General shall determine whether additional actions, including remedial measures with respect to inappropriate past FCPA investigations and enforcement actions, are warranted and shall take any such appropriate actions or, if presidential action is required, recommend such actions to the President, it added.
Last year, the DoJ had charged a former executive at renewable energy firm Azure, which was at the heart of a case accusing Adani of perpetrating a bribery scheme. The DoJ also brought a criminal indictment.
While Adani Group had called the charges “baseless”, Azure said the former employees referenced in the charges had been “separated” from it for more than a year.