Feds Target Walmart Bribery Scam in Criminal Inquiry
Company could face 'incredibly high' penalties
By Evann Gastaldo, Newser Staff
Posted Apr 24, 2012 7:13 AM CDT
Updated Apr 24, 2012 7:54 AM CDT
Walmart store signage is seen from the store lot on April 23, 2012 in Mexico City, Mexico.   (Getty Images)

(Newser) – Walmart is under criminal investigation by the Department of Justice over allegations that it doled out millions in bribes to Mexican officials in order to grow its business there more quickly, sources tell Bloomberg and the Washington Post. The US Foreign Corrupt Practices Act prohibits companies from paying foreign officials in an effort to increase business, and if Walmart is found to be in violation of FCPA, the company could face executive departures, slowed expansion in Mexico and other markets, and penalties that could be "incredibly high," says one lawyer.

In a note to employees yesterday, Walmart CEO Mike Duke said the company is conducting its own "aggressive investigation" into the allegations; in an earlier statement, a VP had noted that "many of the alleged activities ... are more than six years old. If these allegations are true, it is not a reflection of who we are or what we stand for." The top Democrats on the House Oversight and Government Reform Committee and the House Energy and Commerce Committee also moved yesterday to open a probe into the incident. Walmart shares dove after the allegations came to light.

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Showing 3 of 14 comments
slammer
Apr 25, 2012 7:49 AM CDT
CLOSE IT DOWN AND WHERE WILL BO AND MICH SHOP?
Antone123
Apr 24, 2012 12:49 PM CDT
Does this mean we can now start investigating Big Oil and their payoffs to Congress or the insurance industries pay offs to Congress. Bribery can take many forms but in essence they are all illegal .
slammer
Apr 24, 2012 12:00 PM CDT
hey do they sell drugs at the walmart in mexico?