Monday, April 23, 2012

The Real Danger for Wal-Mart Over Mexican Bribery Allegations


From Forbes: Wal-Mart Stores will likely face the wrath of the U.S. Department of Justice for reining in an internal investigation into bribery allegations at its Mexican subsidiary.

The New York Times reported in a blockbuster article this weekend that a former Wal-Mart de Mexico executive, Sergio Cicero Zapata, reported systematic bribery of Mexican government officials to top Wal-Mart officers in 2005, but that the company “hushed up” the allegations and chose not to report them promptly to federal prosecutors in the U.S.

According to the New York Times, the internal investigation into whether Wal-Mart’s Mexican division paid bribes to get permits that would allow the company to flood Mexico with new stores was handled by Jose Luis Rodriguezmacedo Rivera, the general counsel for Wal-Mart de Mexico. Rodriguezmacedo wrapped up the investigation quickly in 2006 and Wal-Mart did not report any potential anti-bribery law violations to the Justice Department till December 2011, after the New York Times alerted the company about its reporting into the Mexico allegations.

Whether or not Wal-Mart has violated the Foreign Corrupt Practices Act, the main U.S. anti-bribery law…

Read more at http://www.forbes.com/sites/nathanvardi/2012/04/22/why-wal-mart-is-in-big-trouble-for-hushed-up-mexican-bribery-allegations/

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