Corrupt business practices are not sustainable over the long-term and investors should avoid lending their money to companies with a history of such behaviour. It is the investor and consumer that ultimately pay the price for the unethical business practices of these companies.
On Monday evening of this week, the ABC program Four Corners aired the episode “Digging into Adani”. The Four Corners investigation exposed the long history of corrupt business practices of the Adani Corporation in India which include a complete disregard of local construction, zoning and environmental protection laws, destruction of local environments and funnelling money though shell companies in tax havens to avoid payment of tax and royalties.
If the project proceeds, the Adani Carmichael coal project in Queensland’s Galilee Basin will be one of the largest thermal coal mines in the world. However, the project lacks the support from banks, environmentalists, the local community and the Wangan and Jagalingou people, who are the traditional owners of the land.
So why do the Federal and Queensland governments support this project? Many analysist do not believe the project is financially viable and the Adani group has a documented history of unethical business behavior, environmental destruction and harmful practices in the communities where their projects are located. Despite this, the Federal government is considering a $1 billion subsidy for the Adani project which will be funded by the tax payer.
If the private investment market is avoiding this project, why are the Federal and Queensland governments so keen for the project to proceed?
In his 4 October 2017 article in The Conversation, “Why are we still pursuing the Adani Carmichael mine?, Michael West, Adjunct Associate Professor, School of Social and Political Sciences, University of Sydney, asks “Why would the government put Australian taxpayers on the hook for a project likely to lose billions of dollars when the only clear beneficiaries are the family of Indian billionaire Gautam Adani and his Caribbean tax havens?”
I am wondering the same thing. What do you think?