Coughlin Says Cash Helped Wal-Mart
Ousted Executive Cites Expense of Anti-Union Activity
By Michael Barbaro
Washington Post Staff Writer
Saturday, April 9, 2005; Page E01
ROGERS, Ark., April 8 -- The former head of Wal-Mart's U.S operations, ousted from the board after the alleged misuse of corporate funds, has maintained that the money was spent on anti-union activities such as paying people to identify stores where union leaders planned to recruit, according to a source familiar with the matter.
Such payments could violate federal law if they went to current union members. But lawyers for Thomas M. Coughlin, in rebutting what the company has called a "disagreement" over expense reimbursements, will argue that although he periodically paid people to keep tabs on organizing activity in Wal-Mart stores, none of the recipients were members of a union, the source said.
Coughlin "believes he was doing what was in the company's interest" by collecting information on union activity, said the source, who spoke on condition of anonymity. In countering the company, his lawyers will contend "he was not stealing" but reimbursing himself for work-related expenses, the source said.
Coughlin has not been charged with a crime. Wal-Mart Stores Inc. has turned the matter over to the U.S. attorney for the Western District of Arkansas. The U.S. attorney's office declined to comment Friday.
Coughlin, once the No. 2 executive at the company, stepped down as a board member two weeks ago after an internal investigation raised questions about the use of up to $500,000 in company funds, Wal-Mart said. The investigation, which prompted the company to fire three more employees, focused on the alleged unauthorized use of corporate gift cards and suspect expense reports....
http://www.washingtonpost.com/wp-dyn/articles/A38810-2005Apr8.html