WalMart Bribery in México and all over the World
April 23, 2012 8 Comments
The truth comes out sooner or later. WalMart has bankrupted many small businesses around the world. But let us be honest: WalMart would not exist if people wouldn´t buy there.
Wal-Mart shares plunged nearly 5% this morning, as investors weighed allegations that Wal-Mart bribed Mexican officials to quicken growth and then tried to cover up the corruption.
Executives from Wal-Mart’s Mexican subsidiary reportedly used systematic bribery to receive building permits across the country, according to The New York Times story that broke the news Saturday. After Wal-Mart learned about the bribes, it stalled an internal investigation into the situation and failed to promptly report the problems to the U.S. government. The Wal-Mart de Mexico executive described by The Times as the man directing the illegal operations, Eduardo Castro-Wright, now serves as a Wal-Mart vice president, set to retire in July.
Wal-Mart is meeting with the Justice Department and the Securities and Exchange Commission. If the allegations prove true, Wal-Mart violated the Foreign Corrupt Practices Act (FCPA), legislation that allows investigators to charge a U.S. company with bribing overseas officials. After a decade of carefully encouraging companies to report misbehavior early, the Justice Department may be under pressure to make an example of Wal-Mart.