Wal-Mart is suspected of bribery in Mexico in exchange for open shop permission

Wal-Mart has been caught in a massive bribery scandal, and the New York Times revealed that Wal-Mart's Mexican company was suspected of paying bribes in exchange for opening a shop, and that its executives had not only known about it, but had even deliberately masked the problem. Wal-Mart vice chairman Wright and CEO Duke are likely to be dismissed and some executives may even face criminal charges. Wal-Mart China yesterday sent a statement to the newspaper saying it would conduct a thorough investigation. In September 2005, a senior Wal-Mart lawyer received an e-mail from a former senior executive at Wal-Mart, Mexico, Sergio Cicero Sapata, the New York Times reported. The letter described how the Mexican branch had bribed the middleman to obtain a licence to open a shop in Mexico. The total amount of bribery is over 24 million dollars. The report said Wal-Mart initially deliberately concealed the matter, and through accounting fraud to modify the relevant accounts. Cicero identified the bribery phenomenon for many years and the former chief executive officer of the Mexican branch, Eduardo Castro Wright, was behind the scenes. The top executives, including him, acquiesced and condoned the practice, and also concealed it from US headquarters. Wright is currently vice chairman of Wal-Mart. Wal-Mart's incumbent CEO, Michael Duck, was chairman of Wal-Mart international during the scandal. He also received frequent briefings on internal investigations. Yesterday, Wal-Mart China issued a statement to this newspaper, saying that Wal-Mart strictly adheres to the U.S. Anti-Foreign Bribery Act (FCPA). There is no tolerance for violations of FCPA at any point in the company's business. "Many of the actions referred to in the New York Times occurred more than six years ago," he said. Even if these statements are set up, it does not reflect Wal-Mart's values and stance. "Wal-Mart said last fall, the company has passed the Board of Directors appointed by the Audit Committee to start a broad investigation of the FCPA compliance work." Wal-Mart is committed to a thorough investigation. (Reporter Fan)