EFIC, NAIF & Adani: exposing serious flaws in plans for a government subsidy to support Adani’s Carmichael coal project
Environmental Justice Australia exposed serious flaws in plans for a government subsidy to support Adani’s Carmichael project – a proposal for the world’s largest new coal mine.
Export credit agency transactions are typically seen as a safe bet. But EJA’s research revealed the legal framework governing the operation of Australia’s Export Finance and Insurance Corporation (EFIC) contains Constitutional, political and legal roadblocks that would preclude loans and payments for projects like Adani’s Carmichael coal mine.
The Northern Australia Infrastructure Facility (NAIF) considered lending $1 billion in taxpayers’ money to a coal railway to service Adani’s mine. EJA exposed NAIF board members’ conflicts of interest, raised serious questions about NAIF’s Risk Appetite Statement and its Anti-Money Laundering policy and advised that NAIF’s officials would breach their duties if the loan proceeded.
We took steps to challenge the view that these ventures take a responsible position on climate change on the grounds that financial support of new coal infrastructure would breach government officials’ duties as laid out in this media release. The have not yet accounted for their company links that We raised serious concerns about the potential conflict of interest of the NAIF board members’ company links.
Read our Senate inquiry submission (PDF download) and read the hearing transcript.
- The real risks of EFIC support for Adani: report, analysis
- NAIF directors’ duties: background
- NAIF conflicts of interest: background
- NAIF Senate Inquiry: submissions, hearing
- Adani misleading jobs figures: ACCC referral, background
- Adani NAIF application: background, EJA letter to Bombay Stock Exchange