Friday 23 March 2018

US supermarket giant Wal-Mart in corruption probe

Walmart store
Walmart store

US supermarket giant Wal-Mart is paying for lawyers to represent more than 30 of its executives involved in a foreign corruption investigation, an unusually high number that shows the depth of the federal probe.

The US Department of Justice is investigating whether Wal-Mart paid bribes in Mexico to obtain permits to open new stores there, and whether executives covered up an internal inquiry into the payments.

The department is also looking into possible misconduct by the world's largest retailer in Brazil, China and India.

In recent months, the US government has brought in a number of senior Wal-Mart executives for questioning, including officials from corporate headquarters in Bentonville, Arkansas, sources said.

The move, along with widespread publicity about the probe, appears to have prompted executives to seek their own legal representation. The sources declined to name the executives who have submitted to interviews.

Wal-Mart confirmed that it is footing the legal bills for executives touched by the corruption probe, but the company declined to give any specifics.

While it is common for companies in bribery investigations to cover executives' legal costs, experts said the large number of attorneys hired in the Wal-Mart case suggests prosecutors are aggressively testing information that the company has turned over, and may be considering cases against multiple individuals.

"I've never heard of that many potential targets of an investigation no matter how big," said Richard Cassin, an anti-corruption lawyer and author of a popular blog on the law at issue, the Foreign Corrupt Practices Act.

"Those numbers suggest DOJ is really digging deep," he said.

Justice Department spokesman Peter Carr declined to comment. The investigation is not close to a conclusion, and it is not clear if any individuals will ultimately face criminal charges.

Wal-Mart spokesman David Tovar said the investigation is ongoing and the company is cooperating with US authorities. He said it is not uncommon for individuals to retain counsel to advise them in such situations.

"It is inappropriate for us or others to come to conclusions until the investigation is completed," Tovar said.



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