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Saturday, November 23, 2024

Trump, Trumpism, and the Polycrisis

By Jeremy Brecher
November 22, 2024
Source: Strike!


Image via Strike!/Jeremy Brecher


“Polycrisis” is a word that has recently come into use to characterize the way crises in many different spheres – ranging from geopolitics and economics to climate and pandemic – are aggravating each other and even converging. Trump and Trumpism, like similar leaders and movements around the world, took off in the era of polycrisis and reflect many of its themes. They are also likely to severely aggravate the dynamics of the polycrisis.

Although Trump and Trumpism are deeply rooted in American history, they are also an aspect of the emerging era now widely referred to as the global polycrisis. The polycrisis shaped many of the conditions that promoted the rise of Trumpism. Trumpism, in turn, echoes many of the themes of the polycrisis. Trump’s actions will go out not into a peaceful world order, but into a world order in polycrisis, where the effects of almost any actions are difficult to predict. And his actions are likely to significantly aggravate the polycrisis, in particular making it more violent, unpredictable, and folly-ridden.

Trump and Trumpism must be understood in the context of the polycrisis. In his address to the 2024 Republican National Convention, Donald Trump said,


We have an inflation crisis that is making life unaffordable, ravaging the incomes of working and low-income families, and crushing, just simply crushing our people like never before. They’ve never seen anything like it.

We also have an illegal immigration crisis, and it’s taking place right now, as we sit here in this beautiful arena. It’s a massive invasion at our southern border that has spread misery, crime, poverty, disease, and destruction to communities all across our land. Nobody’s ever seen anything like it.

Then there is an international crisis, the likes of which the world has seldom been part of. Nobody can believe what’s happening. War is now raging in Europe and the Middle East, a growing specter of conflict hangs over Taiwan, Korea, the Philippines, and all of Asia, and our planet is teetering on the edge of World War III, and this will be a war like no other war because of weaponry. The weapons are no longer army tanks going back and forth, shooting at each other. These weapons are obliteration.[1]

Trump’s description of the world is like a distorting funhouse mirror reflection of reality – the reality of the polycrisis. However fallacious his interpretations and proposals, terrifying threats are a reality in the era of polycrisis.

In reality, inflation has ravaged the incomes of working and low-income families, and the recent inflation is only one manifestation of an out-of-control global economy that has been crushing people since the Great Recession of 2007. In reality, millions of people have been driven from their homes around the world by war, globalization, and climate change. In reality, misery, poverty, disease, and destruction to communities has in fact been occurring, not as a result of immigration, but of the dismantling of public programs that reduce poverty, disease, and destruction. War is indeed raging in Europe and the Middle East, and a growing specter of conflict does hang over Taiwan, Korea, the Philippines, and all of Asia. Our planet is indeed teetering on the edge of World War III, and that would indeed mean “obliteration.” That is the reality of the polycrisis.

Trump’s claims that he and he alone can fix the problems he describes would be laughable if they weren’t so dangerous. But the real reality is as scary as the one he portrays. It is little wonder that millions of ordinary people are suffering from anger, fear, and pain. They are reacting to reality.

The era that preceded the polycrisis, roughly from the fall of the Soviet Union to the Great Recession, was marked by unilateral global hegemony by the United States. It was marked by a neoliberal globalization which imposed unregulated corporate power on every country and institution. It saw political power determined by elections in most countries, however unequal those elections may have been. And it saw governments and corporations at least shadowboxing against the threat of climate change.

This relatively stable if unjust world order has been transformed into the polycrisis. Unipolar US hegemony has been replaced by multiplying wars, the rise of Great Power conflict, and the decline of international cooperation inside and outside the UN. It has also been marked by fragmentation of the global economy and Great Power struggle to dominate what are still global economic networks. International climate protection has become a transparent sham, and major political forces, including the soon-to-be leader of the world’s most powerful country, deny the reality of climate change. The remaining institutions of democratic rule have been shredded by a transition to transparent plutocracy on the one hand and the rise of movements, parties, and national leaders who resemble the classic fascists who rose a century ago – similarly the product of burgeoning global disorder.

The past dozen years have witnessed the rise of movements in dozens of countries that resemble the classic fascism of 1920-1945. They manifest smashing of democratic institutions, contempt for constitutions and laws, utilization of violence for political purposes, scapegoating of racial, ethnic, gender, political, and other minorities, hostility to transnational cooperation, authoritarian dictatorship, and a variety of related characteristics. To include the many manifestations of this phenomenon, rather than exclusively those who proclaim themselves fascists, I refer to it as the new “para-fascism.”

Donald Trump is a paragon of this new para-fascism. His rise to power has coincided with that of para-fascists around the world. In Europe these include Giorgia Meloni’s Brothers of Italy; the Law and Justice Party in Poland; Viktor Orbán’s Fidesz in Hungary; ruling coalitions in Sweden and Finland; Marine Le Pen’s National Rally; Geert Wilders’ Freedom Party; and Alternative Fur Deutschland, among others. In South America similar parties control or share governmental power in Uruguay, Argentina, and until recently in Brazil. In Asia, India’s government under Modi and the Philippines under Duterte and Marcos, Russia under Putin, Turkey under Erdogan, and Israel under Netanyahu have become increasingly para-fascist. China has moved to an expanded nationalism and an authoritarian recentralization of power, though it differs in many ways from other para-fascisms.

Para-fascism – and notably Trumpism — is a child of the polycrisis. The Great Recession, while not the cause of the polycrisis, can serve as a convenient marker for its emergence; as Philippine scholar and activist Waldon Bello noted, the “buildup of fascist movements and parties didn’t start till 2011, i.e. post-Great Recession.” The polycrisis helped make possible the rise of Trump and other para-fascist leaders. They in turn reflected, echoed, and even incorporated many features of the polycrisis:The polycrisis embodies the breakdown of international cooperation and the rise of national conflict. Trumpism is characterized by hatred of globalism and celebration of ethno-nationalism.
The polycrisis is a period of declining US hegemony, Great Power conflict, and war. Trump’s overriding theme, “Make America Great Again,” is a direct response to this reality.
The polycrisis is marked by the emerging conflict between the rising power of China and the relatively declining power of the US – sometimes referred to as an example of the “Thucydides trap.” The demonization of China and the attack against Chinese development has been a central theme of Trump’s approach to international affairs – one echoed by President Joe Biden during the Trump “interregnum.”
The polycrisis represents a transition from globalization’s global economic integration to Great Power battles to control global economic networks. Trump’s pugilistic economic nationalism represents both a reflection and an intensification of this trend.
The polycrisis has seen the decline of democracy and the breakdown of limits on plutocracy. Trump puts this tendency on steroids with his outright attacks on democratic institutions and his transformation of plutocracy into kleptocracy – aka politics by theft.
The polycrisis has seen a near total failure to restrain the climate destruction that is no longer just a threat but an everyday reality. Trump not only denies the reality of climate change but aims to do everything in his power to aggravate it through expanded fossil fuel extraction and burning.

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Notwithstanding his claims to fix the threats people are facing, Trump in power will only aggravate the polycrisis. The rubbishing of safeguards provided by democratic governance will amplify irrational policymaking and exacerbate popular feelings of powerlessness and alienation. Outlandish increases in military spending, designed to implement the fantasy of renewed US global domination, will lead instead to ruinous nuclear and conventional arms races. Trump’s style of provocation, deliberate unpredictability, and unrestrained folly will lead to intensified conflict, strange shifts in alliances, deliberately aggravated chaos, and wars. His energy policies will put climate catastrophe on steroids. This exacerbated polycrisis will produce a self-amplifying feedback loop that will increase the fear and anger that are prime sources – and prime resources — of Trumpism.

[1] “Read the transcript of Donald J. Trump’s Convention Speech,” New York Times, July 19, 2024. https://www.nytimes.com/2024/07/19/us/politics/trump-rnc-speech-transcript.html



Jeremy Brecher is a historian, author, and co-founder of the Labor Network for Sustainability. He has been active in peace, labor, environmental, and other social movements for more than half a century. Brecher is the author of more than a dozen books on labor and social movements, including Strike! and Global Village or Global Pillage and the winner of five regional Emmy awards for his documentary movie work.



Life With and After Trump

November 21, 2024
Source: Originally published by Z. Feel free to share widely.





How does one take seriously having a vaccine denier in charge of public health? How about having the world’s richest corporate owner in charge of cutting regulatory agencies? Or having the other foxes in the henhouse, much less Oval office-ing the degenerate ringmaster himself? I would guess all who read this article feel outrage and horror, but also more than a little scared.

Do you go to bed at night or get up in the morning with thoughts, fears, and dread that you want to jettison? Turn off the news. Turn it off. Turn it off. Enough already. Set aside the articles. Stop the flow. Netflix calls. A novel beckons for attention. Go for a walk, get some fresh air. Maybe have a drink or ten. Perhaps throw a fit, or maybe just snarl a lot.

I get all that. And I am not going to tell you that going to meetings or attending them online, reading or writing calls to action, thinking about what to do and how to do it, and urging friends, neighbors, workmates, and family to join you in it will banish the nightmares and bring on only joyous dreams. To fight the power can certainly have inspiring, energizing, and joyous moments, but it will also have plenty of frustrations, strains, drains, and flat out boring moments. It is, however, the only thing that can lead to better days.

In that context, as dreadful as things may now feel, as immobilizing as Trump’s barbarity may feel, the current humane, radical, and/or revolutionary task is to block near-term Trumpian successes while preparing to pursue longer term positive campaigns and agendas. Why? Five reasons. To prevent continued and new Trump-inspired damage at home and abroad.To show that Trump is beatable. He is not someone to start supporting or to double down in support of. Don’t do it. He is someone to usher into ignominy.To prevent structural changes we would have to later roll back.To develop vision we truly desire and means to win it, not just to survive.To contribute to and, yes, to enjoy emergent hope and community.

Trump’s appointments aim to establish a police state. Please read that again. That is our immediate setting. It is not rhetoric. It is not hyperbole. His appointments will seek to trash democracy and participation and increase corporate control. They will try to normalize my-way-or-the-highway rule. Trump’s appointments are not only unqualified and even anti-qualified, they are also shock and awe provocations. They are bludgeons to rob our initiative, but despite their weirdness, each is also smartly attuned to Trump’s perverse, homicIdal aims.

Trump himself is simultaneously a nightmare and a sick joke. As a wannabe dictator, he seeks dominance. As a degenerate clown, he caterwauls toward history’s garbage bin. Which persona will predominate?

As Trump tries to dramatically change society from its horrendously flawed present into a drastically worse future, I believe more than enough people will extricate from his lies, see through his false promises, and overcome their understandable fear and depression to resist both Trump and his appointees. Enough people will resist his border, deportation, spying, coercing, impoverishing, repressing, sickness-inducing, militaristic, misogynistic, racist, and corporatist agendas to scuttle his aims.

Indeed, resistance is already surfacing. But resistance doesn’t automatically succeed. To win, resistance must become a persistent, continuous and unified force. It must attract and retain steadily more public participation. It must manifest increasingly more mutual aid and solidarity. It must raise social costs that elites do not wish to meet. Is that possible? And is it possible before Trump solidifies his support and transforms institutions to his specifications?

Most of Trump’s voters mainly supported what they thought was a positive possibility that he would shake things up so that they might benefit. They wanted change and rightly thought he would cause change. He successfully deflected their realizing it would be change for the worse.

Trump’s voters also secondarily supported prospects of his overcoming problems that don’t exist or fears that are greatly exaggerated but which he will only make worse. And finally, some of Trump’s voters thought he would protect old ways of living against new disorienting trends.

So how do we raise social costs for Trump and more for elites that support or simply put up with his aims?

If we uncompromisingly reach out to many of Trump’s voters while we (and Trump’s own actions) reveal Trump’s true aims and do so while Trump is restrained by fierce resistance, many and we should hope even most of his voters will reject what they come to see as Trump’s negative effects.

On the other hand, if we do not reach out to Trump’s voters and if we do not block Trump in coming months then even his weakly supportive voters will see Trump pull off one programmatic step after another, each of which he will celebrate as serving their interests, as freeing them, and as punishing their enemies, and in that case their tenuous support for him may become deeper and more intense. People who voted for him but voted down ballot for the likes of AOC or for reproductive rights or for a higher minimum wage, or who voted for Trump but would have preferred to vote for the likes of Bernie Sanders, may fall deeper and more intensely in thrall to him. To prevent that is essential.

Activism to block Trump’s agenda needs to welcome and to provide supportive opportunities for participation and leadership to voters for Harris as well as to non voters and indeed to anyone who is already horrified by the specter of a Trump-defined future but who lacks prior experience of active dissent and is thus not already plugged in. Activism should welcome all, but offer suitably different strokes for different folks.

We can’t stop Trump much less move on to win positive change without greater numbers. True enough, you might agree, but you may nonetheless have doubts about succeeding. And I get that things look grim, but does anyone need that point repeated over and over again? To say it will be hard to block Trump and to reverse MAGA and to finally fully rebut fascism’s morbidity is true. But to say that it won’t happen, or at any rate that it won’t happen for years and years, is self-fulfilling unwarranted defeatism. We have to face facts, yes, but not spin them into worse than they are. Defeatism feeds fascism.

Okay, you may feel, but why is defeatism unwarranted? Trump won a big battle. True, but we won many progressive referendums for increased minimum wages, reproductive rights, labor gains, and other progressive results, including in red states. Still, Trump will forever claim a mandate, and will certainly try to parlay his actually narrow electoral victory of between 1% and 2% into some immediate Trumpist gains.

He will try to bludgeon or shock passive acceptance. He will point to whatever early reactionary Trumpian gains he manages to enact to try to galvanize support for more reactionary steps. If in response we move quietly aside or we even jeer in righteous anger while we predict our own coming defeat, we will indeed be defeated.

To resist Trump’s every effort, to start to reverse them and to tirelessly tatter his aura of invulnerability, to reduce rather than ratify people’s fear of him, and to interrupt and then hack away at his level of support and build sufficient active unified resistance to finally replace him is all mandatory. And it will happen. But how fast it will happen, which includes with how little human and social loss along the way, will depend mainly on two things.

First, Trump’s overreach and rate of personal unravelling, and second the pace with which resistance spreads, becomes wholistic rather than atomistic, and reaches out to inspire ever wider activist rejection of Trump’s agenda.

That sounds nice, you might think, but is it real? What about the people who voted Democrat? And beyond them, what about the Democratic Party itself? Won’t they be a dead weight of passive resignation? Or won’t they, however well meaning, drag growing opposition to Trump into Democratic Party let’s get back to business as usual-ism? Will we prevent full blown fascism but return to from where fascism emerged?

Just as Trump’s voters are not peas in a pod, so too for Harris’s voters. Some Harris voters will abstain from resisting Trump, perhaps too comfortable, too scared, too convinced it is futile, or sometimes maybe even donning a red hat. Some will resist Trump but with the express intention of returning to fondly remembered business as usual. Some will begin to resist, including people at higher and higher levels of income and influence, but only the more they feel that Trump’s actions are generating resistance that may come for them next. Not praiseworthy, but relevant. And already happening.

Some will want to return to pre-Trump stability but also to enact some serious and meaningful gains for various constituencies and even regarding sustainability for all of humanity. That is also already happening. It’s praiseworthy but not fundamental. And some will want to move past all of that to prepare the way to win fundamentally new economic, political, and social relations. That is praiseworthy and fundamental, but very far from predominant.

How many people will move toward which new posture will not depend exclusively on peoples’ genes or even their personalities. Nor will it depend only on their incomes or their social identities. It will depend somewhat on all of that but also, and crucially, more on what they encounter in coming weeks and months, including on our words and the scope and effectivity of our resistance, and how welcoming our efforts are to new participants.

The Democratic Party will of course reject fundamental change, and for the most part it will even reject meaningful gains whenever it feels they might expand beyond meaningful to fundamental. The avalanche of essays, interviews, and talks that have recently railed at today’s Democratic Party as an agent of oppressive hierarchy and injustice are correct. It is.

Then again, such observations have been correct even in just my own experience, ever since the mid 1960s. And have been correct from still earlier, way earlier, for people even older. I tend to wonder, therefore, when I read such observations, especially in progressive and seriously leftist venues, who are they written for? Once or twice, as a kind of gentle here’s what we all know reminder, I might understand. But over and over in such venues, as if only the author knows? As if it is some kind of newly discovered wisdom? It seems to me that the people who read those essays in progressive outlets already know what they are being told. So what is the editorial point?

The real world truth is that a very large component of resistance to Trump is going to come from organizations and also spontaneous projects with considerable history and even deep roots in Democratic Party activities. If this is not the case, our prospects for preventing full-on fascism will be insufficient. So rather than disparaging such efforts, it seems to me that to try to discern, describe, and debate what to do next along with but not literally melting into such efforts will be more helpful.

When some left writers seem to carelessly dismiss every elected or appointed Democrat much less every voter for Harris as abettors of genocide, misogyny, racism, and corporate domination, they are wrong in the same way as when some left writers seem to carelessly write off all of Trump’s voters as lunatic fascists. These narratives not only ridicule and reject people who are needed for resistance to win, but even people who are already hell bent on resisting.

So, yes, the Democratic Party is part of the repressive, oppressive society that has spawned Trump, produced Trump’s voters’ warranted alienation and anger, and also manipulated and distorted some of the perceptions of Trump’s and indeed of all voters. So of course we don’t want to swear allegiance to the Democratic Party. We even want to keep it in our minds and not forget that it is, as a whole, very much not our ally, but the opposite. But, at the same time, to prevent Trump implementing gain after gain and increasing his support by himself touting his every gain will depend in large part on how many Harris voters resist and, indeed, on how many Democratic Party affiliated actors and organizations resist.

But in that case, a question arises. As we fight to reveal and reject Trump, what do we who aren’t about returning to business as usual seek instead? What do we desire for life after Trump? Is it premature to even ask? After all, we know we have to remove Trump before we can construct better than what we had before Trump.

Indeed, this was one of the costs of a Trump victory. If Harris had won we would now be able to fight for positive and even fundamental change toward a much better future. With Trump having won, we have to first fight against vicious negative fundamental changes that would impose a much worse future. It is also true that on the road to life after Trump Republican majorities in the Senate and House will need to be erased. And then Republican ownership of the White House will need to be erased as well. That is another price of Harris losing. But that isn’t our final goal. Of course not.

It is true, however, that to work to remove Trump can tend toward, can welcome, and can even celebrate and enforce business, government, culture, and households as they were before Trump—or it can begin to inspire desires for and even develop means to win gains toward implementing gains that go fundamentally beyond yesterday’s normal. For that matter, the wherewithal to resist fascism will thrive better if it is fueled and oriented by positive desires for more than restoring the conditions and circumstances that earlier led us toward fascism. We all know that, don’t we? We all know that getting back to everything being broken for us but working fine to serve power and wealth is not our ultimate aim, don’t we?

But if the whole goal isn’t only for the Democrats to win midterm elections in two years so the House and Senate become Democrat dominated, and only for Democrats to win the Presidency in four years so a Democratic Administration replaces Trump (or Vance), then what do we want? If those interim steps are important but not defining, then what do we want for life after Trump?

My answer is, I want Life After Capitalism, After Misogyny, After Racism, After War, After Ecological Denial. What’s your answer? But I am not delusional. We are not going to do all that in four years. What we can do, however, while we stop Trump, is to also think through our aims and methods and begin to implement new approaches able to keep going forward after Trump, even as they are also essential to defeating Trump.

Sanders, AOC, Michael Reich, maybe even Gavin Newsom, and plenty of others whose work I don’t know are saying something halfway similar. They are saying that they in the Democratic Party need to jettison the practices and commitments that their Party has been emphasizing for decades. Those folks are not revolutionaries the way I, for example, prefer. But the odd thing is that they do appear to be self critical of their team. They are saying they have failed. But they are not saying they give up, Trump wins. They are not saying to Trump, go ahead and trample everything. They are not saying they will just try to survive until Trumpism runs out of energy.

No, they are saying that they are not only going to fight, they are going to change their ways, or at least try to. They are going to try to reach out more widely and more aggressively to people who work and not to people who own workplaces, or in some cases, those who boss those who obey. Okay, I won’t belabor that some of them, yes, some of them in the Democratic Party, even if saddled by not yet fully rejecting such basics as private ownership and patriarchy, are sincerely taking stock and seeking to change their ways. But I will merely say that we need that and should welcome that, and not ridicule it and them, and call it mere manipulation.

And I will add, can’t we do as much regarding our team? Our movements? Our organizations? To blame Harris, Democrats, mainstream media, social media, widespread ignorance, rampant apathy, malignant cynicism, all past American history, and even in some degree the whole population is all true enough. It may even be an important part of usefully understanding our emerging context. But what about our own faults? What about the problems we have, within our team.

There is going to be resistance. A whole lot of resistance. What are some things we might want to consider about how our resistance unfolds? Maybe that growing in size and scope and not in verbosity or outrage is the primary measure of success. Maybe that each perspective welcomed as part of the whole needs to respect and welcome and even support and nurture and certainly not rail at and reject every other perspective welcomed as part of the whole. Maybe that to tell ourselves things we already know is not near as important as to find ways to constructively communicate with those who we don’t know and don’t yet agree with. Maybe that to raise social costs for elites is our only road to success and for that it needs to be all willing hands on deck, in turn reaching for unwilling hands too.


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Michael Albert`s radicalization occurred during the 1960s. His political involvements, starting then and continuing to the present, have ranged from local, regional, and national organizing projects and campaigns to co-founding South End Press, Z Magazine, the Z Media Institute, and ZNet, and to working on all these projects, writing for various publications and publishers, giving public talks, etc. His personal interests, outside the political realm, focus on general science reading (with an emphasis on physics, math, and matters of evolution and cognitive science), computers, mystery and thriller/adventure novels, sea kayaking, and the more sedentary but no less challenging game of GO. Albert is the author of 21 books which include: No Bosses: A New Economy for a Better World; Fanfare for the Future; Remembering Tomorrow; Realizing Hope; and Parecon: Life After Capitalism. Michael is currently host of the podcast Revolution Z and is a Friend of ZNetwork.



CRIMINAL CAPITALI$M

Adani Indictment: Concerned Citizens Seek Probe Into ‘Policy Corruption’ in Power Sector


Newsclick Report 




The Peoples’ Commission on Public Sector and Public Services also demanded a comprehensive report by the government in Parliament in 6 months.

New Delhi: Taking note of “disturbing concerns” following the US indictment of several companies, including Adani Green, in the alleged multi-crore bribery scheme in India’s solar power projects, several concerned citizens have demanded accountability in government and corporate players in India’s power sector. The also demanded that a comprehensive report on this be placed before Parliament within six months.

In a press release, the Peoples’ Commission on Public Sector and Public Services (PCPSPS) said the indictment by the US is “not only about large-scale corporate corruption that evidently prevails in India and the USA but also about how fraudulent policies adopted by the Union Ministry of Power at the instance of favoured business conglomerates have defrauded electricity consumers across the country.”

It demanded that under an independent judicial oversight, a comprehensive probe should be ordered “by CBI/ED/CBDT and other investigating agencies to gather further evidence from the US SEC/FBI, factual evidence on the circumstances that led to the Union Ministry of Power adopting such misguided policies and issuing such illegal directives to States, the role of the concerned Indian business conglomerates including the extent to which they unduly benefitted, the one-sided nature of the PPAs, the role of public functionaries at the Centre and in the States and the extent of loss suffered by electricity consumers in the country.”

The PCPSPS said if the allegations are proved true, the concerned conglomerate and their promoters should be blacklisted from undertaking activities in India’s electricity sector.

 

Read the full release below:

Concerned Citizens Demand Accountability for Corporate and Policy Corruption in India’s Power Sector

The US District Court (Eastern District Court of New York)’s recent indictment of several Indian companies, including Adani Green, part of the the Adani conglomerate and the Solar Energy Corporation of India (SECI), a CPSE, raises disturbing concerns not only about large-scale corporate corruption that evidently prevails in India and the USA but also about how fraudulent policies adopted by the Union Ministry of Power at the instance of favoured business conglomerates have defrauded electricity consumers across the country.

In this connection, we refer to our statements issued on June 2, 2022June 30, 2022 and August 16, 2024 in which we had repeatedly pointed out how the Ministry of Power irregularly invoked its authority under Section 11 of the Electricity Act of 2003 to impose an obligation on State power utilities to buy electricity from solar power plants to meet at least 10% of their total electricity requirement, irrespective of its unit cost and affordability. Similarly, the Centre created a man- made coal shortage situation across the country and the Ministry of Power equally irregularly ordered the State power utilities to buy coal from overseas sources to cover the shortage. Both those measures indirectly benefitted a few domestic private business groups known to be close to the ruling political executive at the cost of electricity consumers across the country. Such consumer-unfriendly measures so blatantly adopted by the Ministry led one to the inevitable inference that the policies adopted by the Ministry of Power during the last several years were at the instance of a few business conglomerates close to the executive, certainly not for safeguarding the interests of millions of electricity consumers, many below the poverty line. We hope that institutions like SEBI function independently so as to reinforce the integrity of the stockmarkets and elicit public trust.

The US court’s judgement, based on detailed investigations by US Security Exchange Commission and the US Federal Bureau of Investigation, clearly points to how the Adani Group officials acting in tandem with a US company persuaded SECI and the State-owned power utilities in several States including Andhra Pradesh, Tamil Nadu, Chhattisgarh, Odisha and J&K to sign one-sided Power Purchase Agreements (PPAs) that would enable those private companies to earn billions of dollars of profits over the next several decades, entirely at the cost of the electricity consumers in India. In the process, ably supported by the Ministry of Power’s anti-consumer policies and diktats, the private companies not only defrauded unwary consumers, crippled DISCOMs’ finances but also committed fraud on the public at large.                                                                                        

We demand that, under independent judicial oversight, a comprehensive investigation of this be taken up by CBI/ ED/ CBDT and other investigating agencies to gather further evidence from the US SEC/ FBI, factual evidence on the circumstances that led to the Union Ministry of Power adopting such misguided policies and issuing such illegal directives to States, the role of the concerned Indian business conglomerates including the extent to which they unduly benefitted, the one-sided nature of the PPAs, the role of public funcionaries at the Centre and in the States and the extent of loss suffered by electricity consumers in the country.

If the allegations emerging out of the indictment are found to be true, we feel that, not only the concerned business conglomerates and their promoters be blacklisted and prohibited from underataking activities in the electricity sector in the future but they should be forced to pay a deterrent penalty in addition to compansating electricity consumers for the additional costs borne by them on account of these acts of malfeasance. The culprits should be prosecuted for their criminal liability under the relevant laws.

We demand that a comprehensive report on this be placed before the Parliament within six months.

People’s Commission on Public Sector and Public Services, which includes eminent academics, jurists, erstwhile administrators, trade unionists and social activists.


CBI Should Book Adani on Corruption Charges: CPI (M); Arrest Him, Says Rahul Gandhi


Newsclick Report | 21 Nov 2024

Congress has demanded a comprehensive JPC to look into every aspect of the working of the Adani Group, the "deliberate" institutional erosion of the SEBI, SECI and government bodies, and the deals in foreign countries




File photo of Opposition protest in Parliament. Image Credit: PTI


New Delhi: After indictment of Gautam Adani and seven others by the US Justice Department, Opposition parties on Monday reiterated their long-standing demand for a Joint Parliamentary Committee (JPC) probe into allegations against the Adani Group.

While Leader of the Opposition Rahul Gandhi demanded the arrest of Gautam Adani, his party, Congress, demanded a comprehensive JPC, while the CPI(M) also demanded that the industrialist be booked forthwith by CBI.

In press release, the Communist party of India (Marxist) said the US indictment contains serious charges of paying bribes to Indian government officials at the Centre and state level.

“The indictment states that Rs. 2,029 crores was offered or promised to Indian government officials to get state electricity distribution companies to execute power sale agreements for the supply of solar power. The case has come up in the United States as the charge is that US investors were misled by the Adanis,” said the release.

The party said it was “shameful that such large-scale bribery and suborning of government officials by the Adanis had to be exposed not in India but in the United States through their criminal justice system,” adding that “Gautam Adani and his business empire have had the full protection of the Modi government to execute his unlawful and criminal activities. Prime Minister Modi himself had shielded Adani from any enquiry or prosecution on the charges emanating from the Hindenburg expose. “

The CPI(M) said the Modi government cannot hide behind any smokescreen now. “The Central Bureau of Investigation (CBI) must be directed to immediately file a case based on the material provided by the prosecution in the United States. Bribery of public servants comes under the Prevention of Corruption Act, which is under the remit of the CBI. A full-fledged investigation by an independent agency is required to unearth all other wrongdoings by the Adani group of companies.”

Vicious Nexus Involving Cronies: Congress

Taking a dig at Prime Minister Narendra Modi’s Ek Hain, Toh SAFE Hain”, Congress president Mallikarjun Kharge said “it is about One Monopoly to protect the looted SAFE!”

In a post X (formerly Twitter), Kharge tagging the PM and Leader of Opposition Rahul Gandhi, Kharge said: “When a top ranking Indian businessman is indicted by a foreign country, it tarnishes our image at the global stage.”

He said, “The Indian National Congress has been continuously objecting to unethical business practices which profiteer and promote certain individuals by implementing Modi Govt’s policy of creating monopolies in key sectors and concentrating wealth in the hands of few by giving undue favours.

This entire vicious nexus involving cronies, compromised bureaucrats and certain politicians created by PM Modi & Adani has to be investigated and dismantled. This nexus severely hurts our people - poor and middle class, aspiring entrepreneurs, MSMEs, Startups and crores of small and medium retail investors, for it widens inequalities by snatching savings and opportunities.”

The Congress demanded a comprehensive JPC, which “not only investigates every aspect of the working of the Adani Group, the deliberate institutional erosion of the SEBI, SECI and government bodies, and the deals of Adani Group in foreign countries is the need of the hour.”

Arrest Adani: Rahul Gandhi

At a press conference, Leader of Opposition Rahul Gandhi called for the immediate arrest of Adani Group chairman Gautam Adani, alleging that the Prime Minister was “protecting him.”

The Congress leader, who has been for long demanding a probe into various allegations against the Adani group inside Parliament and outside, said the allegations and accusations made by the US Justice Department must be thoroughly investigated and appropriate legal action should be taken.

"Adani should be arrested and punished for his actions," he said, adding that the charges against the Indian billionaire highlight “serious governance and corruption concerns.”

The Adani Group in a statement has, however, brushed off the allegations as "baseless and denied."


Gautam Adani, 7 Others, Indicted in US in Alleged $250m Bribery Scheme For Solar Power Contracts



Newsclick Report 



Adani Group shares tumble after indictment alleged bribes were “offered and promised” between 2020 and 2024 to people in the Indian government… and were allegedly concealed from US banks and investors.



Business tycoon Gautam Adani.

New Delhi: One of the world’s richest industrialists, Gautam Adani, who heads a conglomerate that includes diverse sectors such as ports, mining, energy, renewables, railways, roads, aviation, edible oils among others, has been indicted by US prosecutors in an alleged $250 million bribery case seeking favours for solar power projects, reports the Financial Times.

The business tycoon, perceived as close to Prime Minister Narendra Modi, along with seven other senior executives have been charged with “bribing Indian officials" and "concealing" it from US banks and investors.

“He (Gautam Adani) was charged alongside seven others, including executives of Adani energy subsidiaries and former employees of a Canadian pension fund. His nephew Sagar Adani, who is the executive director at a renewables company founded by Gautam Adani, is also among the defendants,” said the FT report.

The indictment notice alleged that they “orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors.”

According to the FT report, “US federal prosecutors said more than $250mn in bribes were “offered and promised” between 2020 and 2024 to people in the Indian government as part of the scheme, which was allegedly concealed from the US banks and investors from which they raised billions of dollars. They claimed that Gautam Adani met an Indian official to “advance” the scheme.”

After the indictment, shares of the Adani Group’s 10 listed companies tumbled in the stock market in India.

Recall that the Opposition parties led by Congress leader and Leader of Opposition Rahul Gandhi have been repeatedly demanding a Joint Parliamentary Committee to probe into allegations of stock manipulation by the Adani group, more so after a damning report by US short-seller Hindenburg Research, as also into the alleged role of market regulator SEBI chief Madhabi Puri Buch.

Meanwhile, the Adani Group in a statement denied the allegations made by the US Justice Department against Adani Green officials as "baseless." It said it ill seek "all possible legal recourse."

 


Fiscal Transfers to Capitalists Are Counter-Productive


Prabhat Patnaik 



Far from reviving the economy, transfers to capitalists in a neo-liberal regime have the effect of further contracting the economy.

It is common for governments these days to provide fiscal transfers to capitalists, whether through reduced corporate tax rates, or by providing direct cash subsidies, to encourage greater investment by them and thereby stimulate the economy. During Donald Trump’s first presidency there had been a cut in corporate tax rate in the US with this objective in mind.

In India, the Narendra Modi government, as is well-known, has given massive tax concessions with the same objective. Even a minimum knowledge of economics, however, would show that such transfers to capitalists are counter-productive in a neoliberal regime.

This is because such a regime is characterised by “fiscal responsibility” legislation that fixes the upper limit to the fiscal deficit as a percentage of the gross domestic product, and normally the government operates at this ceiling. Transfers to the capitalists, therefore, have to be matched by reductions in expenditure elsewhere, typically in welfare expenditures undertaken for the working poor, or by an equivalent increase in tax revenue garnered from the working poor.

Now, the effect of handing over, say, Rs 100 to the capitalists by reducing transfers to the workers by Rs 100, is to reduce the level of aggregate demand and hence employment and output. Far from reviving the economy, transfers to capitalists have the effect of further contracting the economy. The way in which this comes about is the following.

Investment undertaken in any period is the result of investment orders given earlier, and hence of investment decisions taken in the past; this is so because investment projects have long gestation periods and it is as true of private investment as of public investment. If the tempo of investment is to be stepped up, then a decision for doing so will be taken in the current period and the actual tempo will increase only subsequently. Hence investment in any period must be taken as a given magnitude that does not change during the period in question.

What does change during the period in question is the level of consumption; and here, because the workers consume a higher share of their incomes than the capitalists, any shift of purchasing power from workers to capitalists has the effect of lowering consumption (the same happens if the government reduces its consumption in order to make transfers to capitalists).

What is more, transfers from workers to capitalists (and even from the government to capitalists) have the effect of reducing net exports (that is, the excess of exports over imports), since capitalists’ consumption is more import-intensive. But let us deliberately understate our argument by assuming that transfers to capitalists, that are financed at the expense of the workers, do not change net exports. Since the gross national income, Y, of a country must equal the sum of consumption C, investment I, government expenditure G, and the surplus on the current account of its balance of payments (X-M), that is,

 Y = C+ I + G + (X-M)        ……              (i)   

transfers to capitalists, by lowering C, lower the right-hand side, which depicts the level of aggregate demand.

The equality in the above equation, therefore, can be restored only through a fall in Y, that is, through a reduction in output and employment.

When this happens, the degree of unutilised capacity in the economy increases, which has the effect of lowering the investment decisions of the capitalists taken in the current period and hence their actual investment in the subsequent period. The economy, therefore, far from getting stimulated, actually contracts.

But the story does not end there. Any such contraction in itself, that is, if other things remain the same, has the effect of reducing profits. Thus, while transfers to capitalists as such, have the effect of increasing profits, the fact that such transfers are obtained by reducing the purchasing power of the workers, have the opposite effect, of reducing profits. And under fairly realistic assumptions, these two effects cancel each other out exactly, so that total profits of the capitalists remain exactly the same as would have obtained without the transfers. The assumption under which this result holds is that the working people consume their entire income.

This is a fairly realistic assumption because the proportion of the total wealth of the economy that is owned by the bottom segment of the population is quite minuscule. In India, for instance, the bottom 50% own only 2% of the total wealth of the country. Since all wealth necessarily arises from savings, this only shows that they scarcely save anything at all. Hence our assumption that the working people do not save and that the entire savings in the economy come from the rich, apart from the government, is quite realistic.

Let us, only for a moment, assume that the rich, in this case the capitalists, save their entire income; then private savings equal profits. Since in any economy, total domestic savings must equal total domestic investment minus the inflow of foreign savings, and since government investment minus government savings is what is called the fiscal deficit, this amounts to saying that private savings, and hence profits, in the economy, must necessarily equal private investment plus the fiscal deficit minus foreign savings F coming into the economy during the period; that is,

Profits = Private Investment + Fiscal Deficit – F …(ii)

Since we have argued that private investment and the inflow of foreign savings (which is the just the negative of X-M above) will remain unchanged during the period, as will the fiscal deficit because of the “fiscal responsibility” legislation, profits must remain the same despite the transfers to capitalists.

Dropping the assumption that all profits are saved makes no difference to the above argument. If a proportion α of profits is saved, then equation (ii) simply becomes:

α. Profits = Private Investment + Fiscal Deficit – F… (iii)

If the right-hand side of (iii) remains unchanged, for reasons we have just discussed, then profits must also remain unchanged even if α is not equal to one. Budgetary transfers to the capitalists in short, in a neoliberal regime where the fiscal deficit cannot be increased to finance such transfers and where, therefore, workers’ incomes have to be reduced correspondingly, have the effect not only of precipitating a contraction in output and employment, but of not even increasing the magnitude of capitalists’ income if the workers consume their entire income.

Budgetary transfers to the capitalists in other words cause inequality to increase in an economy without even increasing the capitalists’ income, because they cause an output contraction that negates the profit-increasing effects of such transfers.

They do, however, have one other important effect which is the real reason why the government resorts to them, and that is to change the distribution of profits among the capitalists in favour of the monopoly stratum, away from non-monopoly capitalists. This is so for the following reason. We have seen that total profits remain unchanged despite budgetary transfers to capitalists because while transfers are an addition to profits, the fact that they are associated with taking away incomes from the workers, and reducing aggregate demand, lowers profits to an exactly equal extent; but while this is true in the aggregate, the capitalists who face reduced demand and the capitalists to whom the bulk of the transfers accrue are not the same. In particular, large capitalists are not affected much by the reduction in workers’ consumption demand; but they get the lion’s share of the budgetary transfers. They are, therefore, net gainers, while smaller capitalists whose presence is more pronounced in the market for workers’ consumption goods, become net losers, even when total profits remain unchanged at the aggregate level.

Budgetary transfers to the capitalists are thus a means of aiding what Marx had called “centralisation of capital”, of hastening the replacement of smaller capitals (or even petty producers who produce goods for workers’ consumption) by large capitals. This is what its “crony capitalists” want and the government obliges them. Such transfers are undertaken in the name of stimulating the economy, but they do nothing of the sort; on the contrary they succeed only in contracting the economy, but even in such a contracting economy, they strengthen the position of the monopoly capitalists.

There is some recognition in the media and among Opposition parties that small producers in the country were harmed by demonetisation and the introduction of the Goods and Services Tax. There is, however, less recognition of the harm done to them by the tax concessions and other forms of budgetary transfers made to the capitalists.

Prabhat Patnaik is Professor Emeritus, Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi. The views are personal.

Friday, November 22, 2024

CRIMINAL CAPITALI$M

Gautam Adani: Billionaire Indian tycoon facing US bribery charges

AFP
November 21, 2024

Gautam Adani has been charged by US prosecutors with paying more than $250 million in bribes to Indian officials for lucrative solar energy supply contracts - Copyright AFP Sam PANTHAKY

Billionaire Indian industrialist Gautam Adani, whose business empire has been rocked by US bribery charges against him, is one of the corporate world’s great survivors.

The tycoon — a close ally of Hindu nationalist Prime Minister Narendra Modi — oversees a vast conglomerate encompassing coal, airports, cement and media operations.

The US court charges that he paid hundreds of millions of dollars in bribes sent his companies’ shares plunging. But Adani has seen off big threats before.

On New Year’s Day in 1998, Adani and an associate were reportedly kidnapped by gunmen demanding a $1.5 million ransom, before being later released at an unknown location.

A decade later, he was dining at Mumbai’s Taj Mahal Palace hotel when it was besieged by militants, who killed 160 people in one of India’s worst terror attacks.

Trapped with hundreds of others, Adani reportedly hid in the basement all night before he was rescued by security personnel early the next morning.

“I saw death at a distance of just 15 feet,” he said of the experience after his private aircraft landed in his hometown Ahmedabad later that day.

Adani, 62, differs from his peers among India’s mega-rich, many of whom are known for throwing lavish birthday and wedding celebrations that are later splashed across newspaper gossip pages.

A self-described introvert, he keeps a low profile and rarely speaks to the media, often sending lieutenants to front corporate events.

“I’m not a social person that wants to go to parties,” he told the Financial Times in a 2013 interview.

– ‘Stop Adani’ –


Gautam Adani, whose empire has been rocked by panic-selling and allegations of fraud, is one of the business world’s great survivors – Copyright AFP INDRANIL MUKHERJEE

Adani was born in Ahmedabad, Gujarat state, to a middle-class family but dropped out of school at 16 and moved to financial capital Mumbai to find work in the lucrative gems trade.

After a short stint in his brother’s plastics business, he launched the flagship family conglomerate that bears his name in 1988 by branching out into the export trade.

His big break came seven years later with a contract to build and operate a commercial shipping port in Gujarat.

It grew to become India’s largest at a time when most ports were government-owned — the legacy of a sclerotic economic planning system that impeded growth for decades and was in the process of being dismantled.

Adani in 2009 expanded into coal, a lucrative sector for a country still almost totally dependent on fossil fuels to meet its energy needs, but a decision that brought greater international scrutiny as he rose rapidly up India’s rich list.

His purchase the following year of an untapped coal basin sparked years of “Stop Adani” protests in Australia after dismay at the project’s monumental environmental impact.

Similar controversies plagued his coal projects in central India, where forests home to tribal communities were cut down for mining operations.

– ‘Extraordinary growth’ –

Adani is considered to be close to Prime Minister Modi, a fellow Gujarat native, and offered the leader the use of a private company jet during the 2014 election campaign that swept him to power.

The tycoon has invested in the government’s strategic priorities, in recent years inaugurating a green energy business with ambitious targets.

In 2022, he completed a hostile takeover of broadcaster NDTV, a television news service considered one of the few media outlets willing to outwardly criticise Modi.

Adani batted away press freedom fears, but told the Financial Times that journalists should have the “courage” to say “when the government is doing the right thing every day”.

Last year a bombshell report from US investment firm Hindenburg Research claimed the conglomerate had engaged in a “brazen stock manipulation and accounting fraud scheme over the course of decades”.

Hindenburg said a pattern of “government leniency towards the group” stretching back decades had left investors, journalists, citizens and politicians unwilling to challenge its conduct “for fear of reprisal”.

Adani Group denied wrongdoing and characterised the report as a “calculated attack on India” but lost $150 billion in market capitalisation in the weeks after the report’s release.

Its founder saw his own net worth plunge by $60 billion over the same period, and he is now ranked by Forbes as the 25th-richest person globally.

US prosecutors on Wednesday charged the tycoon and two other board members with paying hundreds of millions of dollars in bribes and hiding the payments from investors.

The indictment accuses Adani Group’s leadership of bribing Indian government officials to secure lucrative government contracts.

The conglomerate and its founder have yet to respond to the charges.


How Indian billionaire Gautam Adani’s alleged bribery scheme took off and unraveled


Indian billionaire Gautam Adani speaks during an inauguration ceremony after the Adani Group completed the purchase of Haifa Port in Israel on Jan. 31, 2023.(REUTERS/File Photo)

https://arab.news/pjuk8
Updated 50 sec ago
Reuters
November 22, 20240

Gautam Adani allegedly tried to bribe local officials in India to persuade them to buy electricity produced by his renewable energy company Adani Green Energy
The allegations caught the attention of US watchdog agencies as Adani’s companies were raising funds from US-based investors in several transactions starting in 2021


NEW YORK: In June of 2020, a renewable energy company owned by Indian billionaire Gautam Adani won what it called the single largest solar development bid ever awarded: an agreement to supply 8 gigawatts of electricity to a state-owned power company.

But there was a problem. Local power companies did not want to pay the prices the state company was offering, jeopardizing the deal, according to US authorities. To save the deal, Adani allegedly decided to bribe local officials to persuade them to buy the electricity.

That allegation is at the heart of US criminal and civil charges unsealed on Wednesday against Adani, who is not currently in US custody and is believed to be in India. His company, Adani Group, said the charges were “baseless” and that it would seek “all possible legal recourse.”

The alleged hundreds of millions of dollars in bribes promised to local Indian officials caught the attention of the US Justice Department and Securities and Exchange Commission as Adani’s companies were raising funds from US-based investors in several transactions starting in 2021.

This account of how the alleged scheme unfolded is drawn from federal prosecutors’ 54-page criminal indictment of Adani and seven of his associates and two parallel civil SEC complaints, which extensively cite electronic messages between the scheme’s alleged participants.

In early 2020, the Solar Energy Corporation of India awarded Adani Green Energy and another company, Azure Power Global, contracts for a 12-gigawatt solar energy project, expected to yield billions of dollars in revenue for both companies, according to the indictment.

It was a major step forward for Adani Green Energy, run by Adani’s nephew, Sagar Adani. Up until that point, the company had only earned roughly $50 million in its history and had yet to turn a profit, according to the SEC complaint.

The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad, India, on November 21, 2024. (REUTERS)

But the initiative soon hit roadblocks. Local state electricity distributors were reluctant to commit to buying the new solar power, expecting prices to fall in the future, according to an April 7, 2021 report by the Institute for Energy Economics and Financial Analysis, a think tank.

Sagar Adani and the Azure CEO at the time discussed the delays and hinted at bribes on the encrypted messaging application WhatsApp, according to the SEC.

When the Azure CEO wrote on Nov. 24, 2020, that the local power companies “are being motivated,” Sagar Adani allegedly replied, “Yup ... but the optics are very difficult to cover. In February 2021, Sagar Adani allegedly wrote to the CEO, “Just so you know, we have doubled the incentives to push for these acceptances.”

The SEC did not name the Azure CEO as a defendant, but Azure’s securities filings show the CEO at the time was Ranjit Gupta.

Gupta was charged by the Justice Department with conspiracy to violate an anti-bribery law. He did not immediately respond to a request for comment.

Azure said on Thursday it was cooperating with the US investigations, and that the individuals involved with the accusations had left the company more than a year ago.

‘Sudden good fortune’


In August of 2021, Gautam Adani had the first of several meetings with an official in the southern state of Andhra Pradesh, to whom he allegedly ultimately promised $228 million in bribes in exchange for agreeing to have the state buy the power, according to the Justice Department’s indictment.

By December, Andhra Pradesh had agreed to buy the power, and other states with smaller contracts soon followed. Other states’ officials were promised bribes as well, US authorities said.

During a Dec. 6, 2021 meeting at a coffee shop, Azure executives allegedly discussed “rumors that the Adanis had somehow facilitated signing” of the deals, according to the SEC.

Gautam Adani said on Dec. 14, 2021, the company was on track “to become the world’s largest renewables player by 2030.”

“The sudden good fortune for Azure and Adani Green prompted speculation in the marketplace about the contract awards,” the SEC wrote in its complaint.

Letter from the SEC


Before long, the SEC began to probe. The agency sent a “general inquiry” letter to Azure — which at the time traded on the New York Stock Exchange — on March 17, 2022, asking about its recent contracts and if foreign officials had sought anything of value, according to the Justice Department indictment.
According to the Department of Justice, Gautam Adani told representatives of Azure during a meeting in his Ahmedabad, India office the next month that he expected to be reimbursed more than $80 million for the bribes he had paid officials that ultimately benefited Azure’s contracts.

Some Azure representatives and a leading investor in the company decided to pay Adani back by allowing his company to take over a potentially profitable project. The representatives and investor allegedly agreed to tell Azure’s board of directors that Adani had requested bribe money, but hid their role in the scheme, prosecutors said.

All the while, Adani’s companies were raising billions of dollars in loans and bonds through international banks, including from US investors. In four separate fundraising transactions between 2021 and 2024, the companies sent investors documents indicating that they had not paid bribes — statements prosecutors say are false and constitute fraud.

FBI search

During a visit to the United States on March 17, 2023, FBI agents seized Sagar Adani’s electronic devices. The agents handed him a search warrant from a judge indicating that the US government was investigating potential violations of fraud statutes and the Foreign Corrupt Practices Act.

According to prosecutors, Gautam Adani emailed himself photographs of each page of the search warrant on March 18, 2023.

His companies nonetheless went through with a $1.36 billion syndicated loan agreement on Dec. 5, 2023, and another sale of secured notes in March 2024, and once again furnished investors with misleading information about their anti-bribery practices, according to prosecutors.

On Oct. 24, federal prosecutors in Brooklyn secured a secret grand jury indictment against Gautam Adani, Sagar Adani, Gupta, and five others allegedly involved in the scheme.
The indictment was unsealed on Nov. 20, prompting a $27 billion plunge in Adani Group companies’ market value. Adani Green Energy promptly canceled a scheduled $600 million bond sale.


UK sanctions Angola’s Isabel dos Santos in graft crackdown


By AFP
November 21, 2024

Isabel Dos Santos is one of three people dubbed 'infamous kleptocrats' by the UK government - Copyright AFP/File Patrick T. Fallon

The UK government on Thursday announced sanctions on Angola’s Isabel dos Santos, the billionaire businesswoman and daughter of the country’s former president, as part of a new anti-corruption drive.

It also sanctioned Dmytro Firtash, a Ukrainian tycoon with links to the Kremlin, and Aivars Lembergs, one of Latvia’s richest people, who is accused of abusing his political position to commit bribery and money laundering, the foreign ministry said.

They are all subject to travel bans and asset freezes, it added in a statement, calling them “three infamous kleptocrats” and accusing them of “stealing their countries’ wealth for personal gain”.

Dos Santos, the ministry said, had “systematically abused her positions at state-run companies to embezzle at least £350 million ($443 million), depriving Angola of resources and funding for much-needed development”.

Considered Africa’s richest woman, she is currently wanted by Angolan authorities investigating alleged illegalities in the management of national oil company Sonangol between 2016 and 2017.

Her father, Jose Eduardo dos Santos, who died in 2022, ruled energy-rich Angola for 38 years until 2017.

She was sanctioned by the United States in 2021 for “involvement in significant corruption” and is barred from entering the United States.

Responding to the UK decision Thursday, dos Santos said that it was “incorrect and unjustified” and that she “intends to appeal”.

“I hope that the United Kingdom will give me the opportunity to present my evidence and prove these lies fabricated against me by the Angolan regime,” she said in a statement released in Portuguese.

“No court has found me guilty of corruption or bribery,” she added. “We are facing another step in Angola’s politically motivated campaign of persecution against me and my family.”

– ‘Ill-gotten gains’ –

Firtash is a one-time ally of ousted pro-Russian Ukrainian president Viktor Yanukovych.

He is currently in Austria fighting extradition to the United States, where he is wanted on bribery and racketeering charges.

In June 2021, Ukrainian President Volodymyr Zelensky signed a decree imposing sanctions on Firtash, including the freezing of his assets and withdrawal of licences from his companies, after accusing him of selling titanium products to Russian military companies.

“(Firtash) extracted hundreds of millions of pounds from Ukraine through corruption and his control of gas distribution and has hidden tens of millions of pounds of ill-gotten gains in the UK property market alone,” the UK government statement added.

Sanctions would also be imposed on his wife, Lada Firtash, and UK-based Denis Gorbunenko, a UK-based financial “fixer”.

Lembergs, a former mayor, is accused of bribery and money laundering. His daughter, Liga Lemberga, is also sanctioned.

In 2021, a Riga court found him guilty of 19 charges including extorting bribes, forging documents, money laundering and improper use of office.

The measures are the latest under 2021 anti-corruption sanctions legislation brought in by the previous Conservative administration.

“These unscrupulous individuals selfishly deprive their fellow citizens of much-needed funding for education, healthcare and infrastructure — for their own enrichment,” said Foreign Secretary David Lammy, a member of the UK’s new Labour government elected in July.

 ”I committed to taking on kleptocrats and the dirty money that empowers them when I became Foreign Secretary… The tide is turning. The golden age of money laundering is over,” he said.

The Conservative government of Boris Johnson announced the first sanctions under its new global anti-corruption regime in 2021.

Britain had previously followed the European Union’s sanctions regime but since leaving the bloc in January 2020 struck out alone with its own policy.

The global anti-corruption sanctions were designed to prevent Britain from being a haven for illicit funds and money laundering.