‘Wal-Mart paid millions of dollars bribe to Indian officials’
WASHINGTON: US federal investigators looking into allegations of corruption by Wal-Mart in Mexico found that the big-box retail giant has paid millions of dollars in bribes to officials in India.
These bribes were “widespread” but were paid in “small amounts” and mostly to “local officials”, The Wall Street Journal said in a report on Monday. No officials were identified in the report, which did specify though, that most of the bribe was paid in amounts between $200 (`13,000 at current rates) and $5 (`325). When “added together, they totalled millions of dollars”, the Journal said, adding, they were paid mostly for speeding up customs clearances and real-estate permits. But the Journal said these bribes are unlikely to lead to any sizable penalty against Wal-Mart as those are linked to profits and the company hardly makes any money in India.
US department of justice refused to comment. “This remains an active, ongoing investigation, so we’ll decline further comment,” Peter Carr, a spokesman for the department, told HT.
US federal investigators began looking into allegations of bribery by Wal-Mart in Mexico three years ago, based on reports by The New York Times. But they found no major offences, the Journal said.
“We are cooperating fully with the government in this matter and can’t comment further... For Walmart, compliance with the US Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws is a key priority. We work closely with third-party compliance experts on support and training as we continuously review and strengthen our programmes around the world,” said Rajneesh Kumar, vice-president & head, corporate affairs, Walmart India.
(With inputs from New Delhi) For detailed analysis, visit hindustantimes.com/business