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U.S. Justice Department Investigating Allegations Of Wal-Mart Bribery In Mexico
By
Garth Johnston
Published Apr 24, 2012
Modified Apr 24, 2012
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By
Garth Johnston
Published Apr 24, 2012
Modified Apr 24, 2012
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Wal-Mart's Mexican problems are not going away. After a Times report alleged that the company was bribing officials south of the border willy nilly in an effort to expand as quickly as possible, the big box behemoth is now facing a U.S. Department of Justice criminal investigation. All of which is giving the chain's foes in the Big Apple lots more ammunition.
According to reports, the Justice Department's new investigation revolves around the U.S. Foreign Corrupt Practices Act (FCPA), and if charges are brought, it could cost the company a pretty penny. "The penalties paid by companies in settling these types of FCPA investigations have grown significantly larger in recent years," Jeffrey Lehtman, a Washington lawyer, told Bloomberg News.
Wal-Mart says that it is conducting an "aggressive investigation" into the allegations that it already investigated (to no end), with the company's CEO promising employees in a letter that it "will not tolerate violations anywhere or at any level of the company." Unless, of course, they can get away with it. This is business, kids.
Over the weekend NYC pols like Public Advocate Bill de Blasio and Manhattan Beep Scott Stringer piled onto the company, arguing that its alleged practices are further proof that Wal-Mart shouldn't be allowed to come to the city—as it has been trying to do for years now. Those politicians and more are expected to appear this afternoon at 2 p.m. on the steps of City Hall to call for City Council hearings on the company's practices and board members in New York City.
Still, not everyone hates the company. Our already not anti-Wal-Mart mayor was asked about the company's Mexican woes at a press conference yesterday and he quickly replied, "I have no idea what Wal-Mart did in Mexico, whether any of that stuff’s true or not. We’ll have to see. There’s one story in the paper."
When a reporter called the mayor a "supporter" of the company, Bloomberg shot back: "No, I’ve not been a big supporter of Wal-Mart. I’ve been a big supporter of government not telling people whether they can do business here. I think you let the market decide whether people want jobs or not, whether people want to buy products at given price ranges for different types, and I think that that’s exactly what this is all about."
Finally, hizzoner added, "Wal-Mart has the right to come here and open a store anytime they want. And if they don’t need a land-use change, they don’t have to consult with anybody, and that’s the way it should be. And then you don’t have to work there or patronize them. Or you can apply for a job and give them your business. Totally up to you. That’s what it’s all about."
Tagged
justice dept
mayor bloomberg
mexico
wal-Mart
Garth Johnston
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