Walmart To Be Investigated By Congress Over Mexican Bribery Scandal [UPDATE]

Soon, the world's biggest retailer will be forced to answer to Congress.

Two Democratic Representatives launched an investigation Monday afternoon into the Walmart bribery scandal, which broke on Saturday with a New York Times story that claimed Walmart had systematically bribed Mexican officials in order to obtain permits during its hasty expansion in the country. As a first step, Elijah Cummings (D-Maryland) and Henry Waxman (D-California) sent a letter to Mike Duke, Walmart's CEO, requesting an in-person meeting with company officials by April 27.

The letter to Duke heavily cited the NYT's investigation, which also alleged that Walmart shut down an internal investigation into the bribery in order to keep the news from surfacing.

“The allegations that Wal-Mart officials in Mexico may have broken U.S. laws by bribing officials to get their stores built faster raise serious concerns," Representative Cummings wrote The Huffington Post in an email statement. "But I am even more alarmed by reports that top company executives in the U.S. tried to cover-up these abuses. We need to ensure that US corporations comply fully with the law, and we need to determine the full scope of these alleged abuses.”

The report raises concerns that Walmart violated the Foreign Corrupt Practices Act, a federal law that prohibits bribery of foreign officials, the Representatives said in their letter.

As part of their investigation, the Representatives are also contacting Walmart executives named by the NYT, including Joseph R. Lewis, Walmart's former director of Corporate Investigations and Maritza Munich, the former General Counsel of Walmart International, who both helped lead the company's internal probe into the bribery. They are also contacting Sergio Cicero Zapata, a former attorney in Wal-Mart de Mexico’s Real Estate Department who was interviewed extensively by the NYT.

UPDATE: This story has been updated with a statement from Representative Cummings.

Last year, Walmart was included in a list by BeyondPhilosphy of companies with the most valuable global brands. See which other companies made the list below:

Comments

[zdamien davies]

12:44 AM on 06/07/2012

What is the difference in Walmart paying gestores in Mexico, and paying lobyists in the US?

[Seattle Noir]

11:24 AM on 04/26/2012

I'm sorry why is this an issue? Mexico is a poor country so corruption and bibery would be a way of doing business. I am not a fan of walmart but as they say when in rome do as the romans, in this case as the mexicans.

[As the world churnes]

11:23 AM on 04/26/2012

Wal Mart does what it wants to except in very few circumstances . In Littleton, Co. the city council 'OKed' a store to be built next to a nature preserve. It failed do to community activism then in the next election all the council was voted out save one.

[Middle Class Majority]

10:14 PM on 04/24/2012

I guess Wal Mart didn't give Cummings and Waxman the appropriate "campaign contributions" that are required here in this country!

[empiresentry]

10:19 PM on 04/24/2012

ooops!!! Can't imagine that happening!!

[Tommy Marz]

10:30 AM on 04/26/2012

One of the very last things a corporation wants is to have Waxman conduct an investigation. He and team are savvy, just look at their impact on healthcare fraud and abuse, pharma, the list goes on. I hope they have teeth and make an impact.

[Middle Class Majority]

11:29 AM on 04/26/2012

The impact he had is very small. Medicare by it's own admission has a 30% fraud rate, and that is what they are willing to admit!

[rcott1019]

07:37 PM on 04/24/2012

This issue has two sides. First, the only way to get anything done in Mexico is through bribery. It's a corrupt country, and that's the reality of doing business there. The big issue, though, is that Walmart is a notoriously conservative company, particularly at the top, and the Republicans have managed to insulate them for a long time. I don't expect this investigation to get very far since the republicans control all the committees that might get involved. It will be swept under the table very quickly. Big corporations can do no wrong as far as the conservatives are concerned, and they don't come any bigger or more conservative than Walmart.

[NVLady007]

02:05 PM on 04/24/2012

Hey Henry and Elijah you better stay focused on the economy ... Forty-nine percent (49%) of Likely U.S. Voters now trust the GOP with economic issues, while only 38% trust the Democrats more.

[NVLady007]

01:46 PM on 04/24/2012

Yea oh yea...Good Idea Dems.. lets bring on an investigation against Walmart ... that will take the News for a few days and give Obama a break on Gas Prices, Jobs or the lack there of, Economy, Secret Service Gate, Fast & Furious Gate, Green Bankruptsey Gate.... and on and on..

[Middle Class Majority]

12:18 PM on 04/24/2012

Wal mart forgot to bribe the right congressmen.

[NVLady007]

01:52 PM on 04/24/2012

lol that is why they are bringing the investigation because they didn't get a piece of the pie. Anyway they have always had it out for Walmart.... That is what they get for being successful. (sigh)

[Chris2281]

09:05 AM on 04/24/2012

I'll bet Walmart will have to pay Congress millions to drop the investigation. Wait a minute....

[rodgray50]

08:58 AM on 04/24/2012

National debt out of control. No budget from the Senate in 3 years. Unemployement at record levels and myriad other problems and the dems want to investigate Walmart in Mexico. Give me a break.

[castella53]

09:13 AM on 04/24/2012

It's not just democrat, nor republicans,it's a group of well to do,i would call them SCAVENGERS/OR VOLTURE this are better title to be given to this specimens that got the entire country in this mess,all of them should be part of the 7 million incarcerated outlaw specimens and doing some hard work like PEALING POTATO FOR MAC DONALD AND BURGER KING ONE AT TIME (MANUALY)FOR THE REST OF THERE NATURAL LIFE AND I HOPE THAT THEY LIVE TO BE 150 YEARS...

[castella53]

08:43 AM on 04/24/2012

That is the only way to do bussinis in mexico...by the way, investigating wrong doing it's a common practice here in america,it's a matter of fact( INVESTIGATING) it's the LARGEST activity in the U.S.A...

[indotube]

08:43 AM on 04/24/2012

does this NOT fall outside of congress' jurisdiction? we're talking about allegations of bribery in another sovereign country.

[castella53]

08:50 AM on 04/24/2012

Dont matter were it fall,it's big money to be made and that is all it count for the VOLTURE of the paralegal system,they will not investigate a brum pusher that is for sure....

[SONNYSIDE]

08:42 AM on 04/24/2012

get it right walmart,bribery in america is lobbyists money and campaign funds.use the right titles and you get away with it

[indotube]

08:40 AM on 04/24/2012

who cares?? this is not news huff n puff. this is what business is like in 3rd world countries. if you want a permit, it doesn't matter how "safe" your building plans are, its how many palms you greased along the way.this is par for the course. i guarantee you any business thats foreign owned and operating in mexico, has paid bribes, on numerous and ongoing occasions, to various mexican officials. if you don't, your plans simply get "misplaced"

[sja8800]

08:37 AM on 04/24/2012

s'cuse me ! what has congress got to do with with bribery in Mexico ?? we 've got enough problems of our own.....Let the Mexican take care of it......