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Walmart investigates claims of a cover-up over $24m in Mexican bribes Walmart investigates claims of cover-up over $24m in Mexican bribes
(40 minutes later)
Walmart is investigating claims that its executives hushed up an internal report that found it paid $24m (£14.8m) in bribes to Mexican officials.Walmart is investigating claims that its executives hushed up an internal report that found it paid $24m (£14.8m) in bribes to Mexican officials.
The world's largest retailer said it was aggressively looking into allegations that it bribed officials in virtually every corner of Mexico as it fought to build up its empire in the country.The world's largest retailer said it was aggressively looking into allegations that it bribed officials in virtually every corner of Mexico as it fought to build up its empire in the country.
An investigation by the New York Times claims senior Walmart executives, including its CEO Michael Duke, were made aware of the bribery claims in 2005 but hushed up an internal investigation by a former FBI special agent. The New York Times claimed that senior Walmart executives, including the CEO, Michael Duke, were made aware of the bribery claims in 2005 but hushed up an internal investigation by a former FBI special agent.
The bribes were allegedly paid to middlemen to speed up planning permission applications for the construction of new stores across Mexico – its fastest growing market where it employs 209,000 people. The bribes were allegedly paid to middlemen to speed up planning permission applications for the construction of new stores across Mexico, its fastest-growing market, where it employs 209,000 people.
In a confidential report to his superiors, the former FBI agent who was Walmart's lead investigator and has not been named,said: "There is reasonable suspicion to believe that Mexican and US laws have been violated." He called on Walmart executives to launch a wider probe, but bosses at the company's US headquarters suppressed the report. In a confidential report to his superiors, the former FBI agent who was Walmart's lead investigator – who has not been named – said: "There is reasonable suspicion to believe that Mexican and US laws have been violated." He called on Walmart executives to launch a wider inquiry, but bosses at the company's US headquarters suppressed the report.
Lee Scott, Walmart's then-CEO, is said to have rebuked internal investigators for being overly aggressive, according to the New York Times report. Neither US nor the Mexican authorities were informed of the allegations, which could fall foul of the US foreign corrupt practices act (FCPA). Lee Scott, Walmart's then CEO, is said to have rebuked internal investigators for being overly aggressive, according to the New York Times report. Neither the US nor Mexican authorities were informed of the allegations, which could fall foul of the US foreign corrupt practices act (FCPA).
The company, which owns Asda in the UK, said it had recently admitted the allegations to both the US justice department and the Securities and Exchange Commission and warned its shareholders of the potential fallout.The company, which owns Asda in the UK, said it had recently admitted the allegations to both the US justice department and the Securities and Exchange Commission and warned its shareholders of the potential fallout.
Walmart said it was "committed to getting to the bottom" of the bribery claims. "We take compliance with the FCPA very seriously and are committed to having a strong and effective global anti-corruption program in every country in which we operate," the company's head of PR David Tovar said. "We will not tolerate noncompliance with FCPA anywhere or at any level of the company. Walmart said it was "committed to getting to the bottom" of the bribery claims. "We take compliance with the FCPA very seriously and are committed to having a strong and effective global anti-corruption program in every country in which we operate," said the company's head of PR, David Tovar. "We will not tolerate noncompliance with FCPA anywhere or at any level of the company.
"Many of the alleged activities in the New York Times article are more than six-years old. If these allegations are true, it is not a reflection of who we are or what we stand for. We are deeply concerned by these allegations and are working aggressively to determine what happened." "Many of the alleged activities in the New York Times article are more than six years old. If these allegations are true, it is not a reflection of who we are or what we stand for. We are deeply concerned by these allegations and are working aggressively to determine what happened."