Inside This Issue - News
Walmart broadens internal investigation
November 26th, 2012
BENTONVILLE, Ark. – An internal investigation of Walmart’s actions in developing markets has now extended beyond the company’s Mexican subsidiary to include Brazil, China and India.
The expansion comes a year after the retailer revealed Justice Department and Securities and Exchange Commission investigations of whether it bribed officials to spur the growth of its Mexican subsidiary.
Walmart says it began looking beyond Mexico after allegations that it violated the Foreign Corrupt Practices Act (FCPA) — legislation that allows authorities in the United States to prosecute American companies for misbehavior abroad such as bribery.
"Since the implementation of the global review and the enhanced anticorruption compliance programs, the company has identified or been made aware of additional allegations regarding potential violations of the FCPA. When allegations are reported or identified, we, together with our third-party advisors, conduct inquiries and, when warranted, we open investigations," said a company statement.
"We have inquiries or investigations regarding allegations of potential FCPA violations in a number of foreign markets where we operate, including but not limited to Brazil, China and India. This is in addition to the ongoing investigation in Mexico."
The announcement is a reflection of the degree to which the retailer recognizes that corruption may have infected its international operations.
"As these matters are currently under review, it would be inappropriate for us to comment further on the specific allegations until we have concluded the investigations. We take compliance with the FCPA very seriously," said the Walmart statement.