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Entries in bribery (2)

Tuesday
Apr242012

Wal-Mart Critics Pounce on Bribery Scandal

Justin Sullivan/Getty Images(NEW YORK) -- Wal-Mart's critics say they are not surprised by charges that the giant retailer paid bribes in Mexico to get its way.  Some hope the Mexico scandal, which could wind up costing Wal-Mart billions in fines, will cause investigators to re-examine situations in the U.S. where payments or donations by Wal-Mart or its confederates preceded the company's getting permission to expand.

The New York Times reported that Wal-Mart's internal documents show that the company's Mexican subsidiary paid at least $24 million in bribes to Mexican officials to get permits needed for the company's rapid expansion there.  The Times also claims Wal-Mart squelched its own internal investigation of the bribes.

Wal-Mart is the biggest private employer in Mexico.  In size, its operations there are second only to its operations in the U.S.  One out of every five Wal-Mart stores worldwide is in Mexico.

The company's stock has fallen nearly 5 percent since the scandal broke.  The Department of Justice has reportedly launched a probe into the allegations.

What Bernard Sosnick, a stock analyst at Gilford Securities, calls the company's "new imbroglio" only confirms what many labor leaders and long-time critics say they have suspected all along: that Wal-Mart's rapacity knows no ethical restraint.  Wal-Mart's many critics are lining up to pile on to the company's woes.

"Am I surprised?  Of course not," says Al Norman, author of The Case Against Wal-Mart and of the forthcoming Occupy Wal-Mart.  He has been dubbed "the guru of the anti-Wal-Mart movement."

"The only thing that surprises me," he says, "is that here you get to see their fingerprints.  Usually, when money changes hands, you can't find the moment when it happened."

The company, he contends, has a long history of paying money to remove obstacles to its expansion.  He has compiled examples of what he deems as Wal-Mart-related briberies on his website, Sprawl-Busters.com.  The claims include situations where citizens testifying at public hearings have accepted cash in exchange for making pro-Wal-Mart statements.  In other cases, he claims, groups protesting Wal-Mart expansion have ceased to protest after accepting donations from the company or its partners.

Joseph Hansen, international president of the United Food and Commercial Workers International Union (UFCW), says only two things surprise him about the Mexican revelations: First, the scope of the alleged bribery.  Second, "I thought they were smarter than that."

Hansen says that when he first learned of the allegations, "They raised question in my mind about stores approved in the U.S., where zoning laws changed quickly and permits were issued quickly. I  think we'll now see people go back and ask questions about that."

Copyright 2012 ABC News Radio

Sunday
Apr222012

Wal-Mart de Mexico Engaged in Widespread Bribery, NYTimes Reports

Justin Sullivan/Getty Images(NEW YORK) -- A senior Wal-Mart lawyer claims the company’s largest foreign subsidiary, Wal-Mart de Mexico, engaged in widespread bribery totaling over $24 million, The New York Times reported.

Wal-Mart de Mexico reportedly used bribes to obtain permits all over the country to build stores quickly and dominate the market. When Wal-Mart’s headquarters in Bentonville, Ark., was informed of the suspicions of bribery, an investigation was launched which unearthed that there was “reasonable suspicion to believe that Mexican and USA laws have been violated,” wrote the top investigator in a confidential report, according to The Times.

But Wal-Mart shut down the investigation, did not inform law enforcement in Mexico or the United States, and did not discipline any of the employees involved in the scandal, according to The Times.

Wal-Mart said today though that it has been investigating the situation since last fall.

“In the fall of last year, the Company, through the Audit Committee of the Board of Directors, began an extensive investigation related to compliance with the [U.S. Foreign Corrupt Practices Act (FCPA)],” said David Tovar, Wal-Mart’s Vice President of Corporate Communications, in a statement.

The Times claims Wal-Mart informed the U.S. Justice Department that it had begun to investigate possible violations of the FCPA only after the company learned of The Times’ reporting in Mexico.

Tovar said that because the investigation is ongoing, the company cannot respond to the allegations in detail.

“We are working hard to understand what occurred in Bentonville more than six years ago and are committed to conducting a complete investigation before forming conclusions. We don’t want to speculate or weave stories from incomplete inquiries and limited recollections, as others might do.”

The FCPA prohibits US companies from bribing officials in other nations to get business.

Copyright 2012 ABC News Radio







ABC News Radio