Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

4/24/2012 (2 years ago)

Catholic Online (www.catholic.org)

Rush to build stores in Mexico saw money under tables changing hands

Retail giant Walmart has admitted it is investigating allegations that its managers in Mexico used widespread bribery to secure the company's presence in the country and expand its market share. David Tovar, vice president of corporate communications says that "This work is ongoing and continues today . We don't have a full explanation of what happened".

Walmart's own lead investigator, a former FBI special agent, says there was reasonable suspicion to believe Mexican and U.S. laws had been violated and had recommended an expanded investigation.

Walmart's own lead investigator, a former FBI special agent, says there was reasonable suspicion to believe Mexican and U.S. laws had been violated and had recommended an expanded investigation.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

4/24/2012 (2 years ago)

Published in Business & Economics

Keywords: Walmart, Walmex, construction, bribery, permits


LOS ANGELES, CA (Catholic Online) - According to the New York Times, a senior Walmart lawyer received an e-mail in which said that in September 2005 from Sergio Cicero Zapata, a former executive at the company's largest foreign unit, Walmart de Mexico. The email described how the subsidiary had paid bribes to obtain permits to build stores in the country.

The former executive described how Walmart de Mexico or Walmex had orchestrated a campaign of bribery to win market dominance. In the rush to build stores, the company had paid bribes to obtain permits in virtually every corner of the country. The attorney had the information because he had been in charge of securing construction permits.

U.S.-based Walmart sent investigators to Mexico City within days and they unearthed evidence of widespread bribery.

Investigators found a paper trail of hundreds of suspect payments totaling more than $24 million. However -- Walmart then shut down the investigation and notified neither U.S. nor Mexican law enforcement officials.

Current Walmart CEO Mike Duke and former CEO Lee Scott, who now sits on the company's board, were among senior executives allegedly aware of the situation.

The Times reported that Cicero, the former Walmex executive, gave names, dates and bribe amounts, adding that he knew so much because for years he had been the lawyer in charge of obtaining construction permits for the Mexican branch of the corporation.

Eduardo Castro-Wright was identified as the driving force behind the bribery. According to the New York Times, no Walmex leaders were disciplined.

Castro-Wright became CEO of Walmex in 2003 and was named CEO of Walmart US in 2005. He became a vice chairman in 2008 and led e-commerce from 2010 until January of this year, and is set to retire on July 1.

Walmart's own lead investigator, a former FBI special agent, says there was reasonable suspicion to believe Mexican and U.S. laws had been violated and had recommended an expanded investigation.

Walmart said in a statement this past weekend that it was "deeply concerned" about the allegations in the Times report and began an investigation into its compliance with the FCPA last year.

The company also said it had disclosed the probe to the U.S. Department of Justice and the Securities and Exchange Commission.

"Many of the alleged activities in the Times article are more than six years old," Tovar says. "If these allegations are true, it is not a reflection of who we are or what we stand for."

.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for August 2014
Refugees:
That refugees, forced by violence to abandon their homes, may find a generous welcome and the protection of their rights.
Oceania: That Christians in Oceania may joyfully announce the faith to all the people of that region.



Comments


More Business & Economics

Here comes a boom! $7 trillion in untapped funds to flood global market Watch

Image of A report suggests that corporations and equity firms hold nearly $7 trillion in cash reserves that could bolster the world's economy.

By Catholic Online (NEWS CONSORTIUM)

A new boost to the global economic recovery may happen soon, as corporate giants and private equity firms prepare to tap into cash reserves of $7 trillion, stored since the current financial crisis began back in 2008. LOS ANGELES, CA (Catholic Online) - Investors ... continue reading


OBAMA PARTIES AS ROME BURNS: U.S. wages down by 23 percent - while president takes a vacation Watch

Image of The timing of Obama's swank vacation has even the president's supporters worried.

By Catholic Online (NEWS CONSORTIUM)

Lots of negative news to go around - Ebola seems to be spreading worldwide, Islamic State is increasing its stranglehold on Iraq, a much beloved comedian and screen actor is found dead at home, an apparent suicide - U.S. President Barack Obama is in Martha's ... continue reading


Religious orders NEED to understand economics Watch

Image of A letter from two high-ranking Catholic officials requests that religious orders gain a better understanding of finance and economics.

By Catholic Online (NEWS CONSORTIUM)

In a letter addressed to members of religious communities, Vatican officials requested that these groups should not be ignorant of economic realities connected to community life and a mission of serving the world in the name of the Church. LOS ANGELES, CA ... continue reading


THANKS, BARACK! Federal debt up $7 TRILLION under your watch. Watch

Image of By the close of business on July 31, 2014, it had risen to $17,687,136,723,410.59, up $7,060,259,674,497.51 since Obama first inauguration day.

By Catholic Online (NEWS CONSORTIUM)

Thanks, Barack! The total federal debt of the U.S. government has increased more than $7 trillion during the slightly more than five and a half years Barack Obama has been president. That's more than the debt increased under all U.S. presidents from George ... continue reading


Live Catholic - Shop Catholic - Guess who now accepts checks?

Image of Catholic Shopping .com now accepts checks via Dwolla!

By Catholic Online (NEWS CONSORTIUM)

Guess who now accepts checks? Catholic Shopping .com does! This new option now makes it easier for you to control how you pay for the things you like. LOS ANGELES, CA (Catholic Online) - Catholic Shopping .com is now accepting checks via the online processor, Dwolla. ... continue reading


Unemployment in the U.S. - never went away! Many still without work Watch

Image of The number of Americans not in the labor force dropped only slightly in July, down 119,000 from the 92,120,000 Americans not in the labor force in June.

By Catholic Online (NEWS CONSORTIUM)

It may have fallen off the radar of many news outlets - but joblessness is still a BIG problem here in the United States. Since President Obama took office in January 2009, 11.4 million Americans 16 years and older have left the workforce, according to data ... continue reading


INDEBTEDNESS: One in three U.S. adults have 'debt in collections' Watch

Image of One in three American adults are so far behind in personal debt that many of their accounts have been referred to collections.

By Catholic Online (NEWS CONSORTIUM)

Some call it the American way, and it's become a most uncomfortable fact of life for many Americans. Personal debt is at an all-time high, and at least one in three Americans, 77 million people, have had their debt referred to collection agencies as a result. ... continue reading


LUMP OF COAL - LITERALLY! Coal companies pushed to brink of insolvency by Obama policies Watch

Image of The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of insolvency, with many companies going out of business.

By Catholic Online (NEWS CONSORTIUM)

Dealing with cheap natural gas and tighter regulation, the U.S. coal industry has fallen on hard times. The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of ... continue reading


The poor getting power in U.S. - typical household is now worth a third less Watch

Image of The old saw goes that when only a few people are winning and more than half the population is losing, surely something is amiss.

By Catholic Online (NEWS CONSORTIUM)

The rich get richer - and the poor have children. But seriously, folks, the poor is getting even poorer in the United States. Recovery from the last big recession in 2007, hasn't really taken off as of yet. Recent studies show that the average American ... continue reading


HAIL BRITANIA! Britain declared fastest growing economy in developed world Watch

Image of Britain is now

By CNA/EWTN News

There will always be an England, as the old song goes. While the United Kingdom has experienced highs and lows, it's always recovered - and prospered. This was born out by the recent news that Britain will be the best performing major economy in the developed ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Ezekiel 43:1-7
1 He took me to the gate, the one facing ... Read More

Psalm, Psalms 85:9-10, 11-12, 13-14
9 His saving help is near for those who fear him, his ... Read More

Gospel, Matthew 23:1-12
1 Then addressing the crowds and his disciples Jesus ... Read More

Saint of the Day

Saint of the Day for August 23rd, 2014 Image

St. Philip Benizi
August 23: Servite cardinal and preacher. Born in Florence, Italy, to a ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter