Wal-Mart Hushed up Vast Mexico Bribery Case

Vast Mexico Bribery Case Hushed Up by Wal-Mart After Top-Level Struggle
Confronted with evidence of widespread corruption in Mexico, top Wal-Mart executives focused more on damage control than on rooting out wrongdoing, an examination by The New York Times found.

MEXICO CITY — In September 2005, a senior Wal-Mart lawyer received an alarming e-mail from a former executive at the company’s largest foreign subsidiary, Wal-Mart de Mexico. In the e-mail and follow-up conversations, the former executive described how Wal-Mart de Mexico had orchestrated a campaign of bribery to win market dominance. In its rush to build stores, he said, the company had paid bribes to obtain permits in virtually every corner of the country.

The former executive gave names, dates and bribe amounts. He knew so much, he explained, because for years he had been the lawyer in charge of obtaining construction permits for Wal-Mart de Mexico.

In the interviews, Mr. Cicero recounted how he had helped organize years of payoffs. He described personally dispatching two trusted outside lawyers to deliver envelopes of cash to government officials. They targeted mayors and city council members, obscure urban planners, low-level bureaucrats who issued permits — anyone with the power to thwart Wal-Mart’s growth. The bribes, he said, bought zoning approvals, reductions in environmental impact fees and the allegiance of neighborhood leaders.

He called it working “the dark side of the moon.”

The Times also reviewed thousands of government documents related to permit requests for stores across Mexico. The examination found many instances where permits were given within weeks or even days of Wal-Mart de Mexico’s payments to the two lawyers. Again and again, The Times found, legal and bureaucratic obstacles melted away after payments were made.

http://www.nytimes.com/2012/04/22/busin ... .html?_r=1

I just love corporate crime. I could sit and watch it for hours.... :VeryScared:

Sounds like Democrats or the Obama Campaign are running the show at Wal-Mart. Where's David Axelrod when you need him?

That is the way the rest of the world works. And bribes are even common in Dem strongholds like Illinois Gov. Blago's office. I was hit up for a bribe in Mexico a few years ago by the shore patrol on New Years Eve.

Wal-Mart bribery allegations could have far-reaching impact

Revelations about an alleged bribery effort and cover-up by top executives at Wal-Mart’s Mexican subsidiary could be very costly for the world's biggest retailer, legal and retail experts said Monday.

A New York Times article published over the weekend said executives deliberately obstructed an internal probe into bribery at Wal-Mart de Mexico, the company's largest international division.

The allegations, if proven true, could badly hamper the company and its management for years. They could lead to a time-consuming global probe, substantial financial penalties imposed by U.S. authorities and the departure of some executives, experts said.

“We could easily see criminal prosecutions,” said Jacob Frenkel, a former official of the Securities and Exchange Commission.

“The fact that it’s a U.S. company working through a Mexican subsidiary does not give the U.S. company protection,” Frenkel told CNBC, adding that anyone who is found to have their fingerprints on the alleged wrongdoings “has potential liability, civilly and criminally.”

Frenkel said he wouldn’t rule out potential jail time for Wal-Mart executives and estimated that the financial consequences of the Times report, if accurate, could cost Wal-Mart $1 billion in settlements and internal investigations.

http://marketday.msnbc.msn.com/_news/20 ... mpact?lite

Looks like they'd better find a better way to do business. Bribery and obstruction of justice don't appear to be working too well. Criminal prosecutions and jail time for execs might not have a positive effect for the "shareholders." Those ol' "job-creators" might have some serious problems.

FredHayek wrote: And bribes are even common in Dem strongholds like Illinois Gov. Blago's office.

And Blago went to jail, as he should have.

I don't think you want to go there with your usual "they did it too." The names Randy "Duke" Cunningham, Jack Abramoff , Bob Ney, and Rick Renzi come to mind....

And Now Blago is a celebrity.

So is Abramoff... They made a movie about him...

Your point is....?

DOJ opens Wal-Mart criminal investigation

The Justice Department has opened a criminal investigation of Wal-Mart following a New York Times report that the company paid bribes to officials in its Mexican business, the Washington Post is reporting on its website. The post cited three sources familiar with the matter.

A New York Times article published over the weekend said executives deliberately obstructed an internal probe into bribery at Wal-Mart de Mexico, the company's largest international division.

The allegations, if proven true, could badly hamper the company and its management for years. They could lead to a time-consuming global probe, substantial financial penalties imposed by U.S. authorities and the departure of some executives, experts said.

http://bottomline.msnbc.msn.com/_news/2 ... ation?lite

The plot thickens..... :VeryScared:

Interesting factoid from NPR last night. There are more Wal-Marts per person in Mexico than the US. The Wal-Mart I visited in Puerto Vallarta was nicer than the one in Wheat Ridge.