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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWalmart covered up bribes and shut down the investigation...
MEXICO CITY In September 2005, a senior Wal-Mart lawyer received an alarming e-mail from a former executive at the companys largest foreign subsidiary, Wal-Mart de Mexico. In the e-mail and follow-up conversations, the former executive described how Wal-Mart de Mexico had orchestrated a campaign of bribery to win market dominance. In its rush to build stores, he said, the company had paid bribes to obtain permits in virtually every corner of the country.
The former executive gave names, dates and bribe amounts. He knew so much, he explained, because for years he had been the lawyer in charge of obtaining construction permits for Wal-Mart de Mexico.
Wal-Mart dispatched investigators to Mexico City, and within days they unearthed evidence of widespread bribery. They found a paper trail of hundreds of suspect payments totaling more than $24 million. They also found documents showing that Wal-Mart de Mexicos top executives not only knew about the payments, but had taken steps to conceal them from Wal-Marts headquarters in Bentonville, Ark. In a confidential report to his superiors, Wal-Marts lead investigator, a former F.B.I. special agent, summed up their initial findings this way: There is reasonable suspicion to believe that Mexican and USA laws have been violated.
The lead investigator recommended that Wal-Mart expand the investigation.
Instead, an examination by The New York Times found, Wal-Marts leaders shut it down.
http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html?_r=1&emc=na
Rex
(65,616 posts)Rename it Wal_Martland.
Ikonoklast
(23,973 posts)Baitball Blogger
(46,720 posts)SDjack
(1,448 posts)DeSwiss
(27,137 posts)When Wal-Marts director of corporate investigations a former top F.B.I. official read the general counsels report, his appraisal was scathing. Truly lacking, he wrote in an e-mail to his boss. The report was nonetheless accepted by Wal-Marts leaders as the last word on the matter.
In December, after learning of The Timess reporting in Mexico, Wal-Mart informed the Justice Department that it had begun an internal investigation into possible violations of the Foreign Corrupt Practices Act, a federal law that makes it a crime for American corporations and their subsidiaries to bribe foreign officials. Wal-Mart said the company had learned of possible problems with how it obtained permits, but stressed that the issues were limited to discrete cases.
We do not believe that these matters will have a material adverse effect on our business, the company said in a filing with the Securities and Exchange Commission. But The Timess examination found credible evidence that bribery played a persistent and significant role in Wal-Marts rapid growth in Mexico, where Wal-Mart now employs 209,000 people, making it the countrys largest private employer.
- Ooops, ''clean-up on aisle six.....''
K&R
ananda
(28,864 posts)Walmart is exactly like t h a t ..
mobra1188
(1 post)Teotihuacan - http://www.planetizen.com/node/14720