Wal-Mart Stores, Inc. (NYSE:WMT), Mexican affiliated are engaged in opening stores at desirable locations with the help of routinely paying a bribe to the local officials, according to a New York Times investigation published Monday. They discovered 19 stores opened by paying bribe by the retail giant.
According to Times in April Wal-Mart Stores, Inc. (NYSE:WMT) is involved in some internal probe of bribery with its Mexican stores but later Mexico’s anti-corruption body made it very clear that Wal-mart de Mexico S A B de C V (ADR) (PINK:WMMVY) is not involved in any such type of cases and there is no irregularities found in the permits Wal-Mart required for running the stores in that country.
Wal-mart de Mexico S A B de C V (ADR) (PINK:WMMVY) apparently paid off officials to magnify its business in Mexico. The alleged bribe paid is related to the acquisition of some environmental permits and related to zoning laws which might prevent the retail giant to open the stores in Mexico.
Wal-mart de Mexico S A B de C V (ADR) (PINK:WMMVY) was hit by protests after pronouncing plans to build a warehouse just a mile away from the city. The company is alleged of violation of the U.S Foreign Corrupt Practices Act in relation to acquire the permit and licenses for the Teotihuacan store. The investigation regarding the matter is going on and not reached to any final conclusion but the company is taking corrective measures to improve its compliance programs.
According to Wal-Mart Stores, Inc. (NYSE:WMT) spokesman David Tovar the company is cooperating with the justice department as well as with the Security and Commission department for the detail investigation.
The U.S justice department, the authority and the U.S lawmaker in Mexico engaged in conducting their own probes. But the prosecutors did not find enough evidence to file a lawsuit against the company. However the probes closed just a couple of months ago.
A leading with integrity letter sent to Wal-Mart Stores, Inc. (NYSE:WMT)employees. Mr. Mike Duke, The chief executive state that integrity is the foundation of the company’s culture. They never compromise with it at any cost. They can average out their sales but it can not be done with the name of the business.
Wal-Mart Stores, Inc. (NYSE:WMT) was up by 0.43% to close at $69.50.
Wal-mart de Mexico S A B de C V (ADR) (PINK:WMMVY) was down by 1.33% to close at $33.34.
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