Walmart's Massive Bribery Scandal: What Happens Now?

[xchrom]

http://www.theatlantic.com/business/archive/2012/04/walmarts-massive-bribery-scandal-what-happens-now/256206/



Senior Walmart executives stopped a far-ranging investigation into pervasive bribery in Mexico, which the company engaged in so it could build stores quickly and obtain market dominance.

So alleges a lengthy, carefully reported New York Times story that is likely to set off an explosion affecting America's eighth largest company and its top leaders, including present and past CEOs. Although facts have to be established by the authorities, this piece is a must read because it presents a detailed case that something was rotten in both Mexico City and Bentonville (Walmart's Arkansas headquarters).

The essence of the allegations is that the head of Walmart in Mexico and his chief lieutenants, including the Mexican general counsel and chief auditor, knowingly orchestrated bribes of Mexican officials to obtain building permits, zoning variances, and environmental clearances, and that they also falsified records to hide the payments. When the lawyer in Mexico directly responsible for bribery payments had a change of heart and reported the scheme to Walmart lawyers in the United States, those lawyers hired an independent firm which recommended a major inquiry. This was rejected by senior Walmart management which instead told an internal Walmart investigative unit to look into it.

That unit, too, said that a major inquiry was warranted. But top Walmart leaders in the U.S. referred the matter back to the Walmart general counsel in Mexico -- the very lawyer who was allegedly at the center of the bribery scheme.

[leftofcool]

1. They will pay a fine and move on.

[obxhead]

8. They will pay a TINY fine that amounts to mere seconds of their global profit

and move on.

Like Google being fined 25K for obstruction of justice. Based on their quarterly earnings it takes Google all of 1 minute to earn the money to pay that fine.

[Javaman]

9. +1 nt

[pipoman]

2. Noooo...say it isn't so..

Mexican government officials corrupt?? Walmart exploiting the corruption?? Can't be..

[xchrom]

3. i know...right? first thing i thought was

will anybody look and see if this has happened any place else?

[marmar]

4. They just do it openly rather than under the guise of "campaign contributions"

...... We're much slicker about that north of the border.

[pipoman]

7. I don't completely disagree

except Mexican corruption has more often been more blatant and has resulted in more political assassinations.

[CanonRay]

5. Isn't it against American law

for American corporations to bribe foreign governments? I can't recall the exact statute. Now we'll see if we really have a Justice department. I'm not hopeful.

[Javaman]

10. Yeah it is.

but like everything else, china-mart will get off by paying some nominal fine.

business as usual.

[CanonRay]

11. The DOJ is too busy prosecuting medical marijuana and Jonathan Edwards

to go after a real crime. I have never seen a more worthless Attorney General than Eric Holder.

[TheCowsCameHome]

6. They'll roll back any fines.

Business as usual.