Here’s Wal-Mart’s Response to Bribery Allegations
Bitten by a bribery scandal at its Mexican subsidiary, Wal-Mart (NYSE:WMT) has announced plans to create a new position that will oversee such cases in the future and seek to avoid similar repercussions. The new global position, titled Global FCPA Compliance Officer, will be tasked with ensuring that all company actions comply with anti-bribery laws. FCPA refers to the U.S. Foreign Corrupt Practices Act.
The new global compliance officer will oversee five directors in international markets, including Mexico, which will get a dedicated FCPA compliance director of its own, a spokesman said. The statement from spokesman David Tovar added that the new post was just one of the measures the company has taken in the past year to manage issues of bribery.
Wal-Mart’s embarrassment stems from a New York Times report that in 2005, a senior Wal-Mart lawyer received an email from a former Wal-Mart de Mexico executive explaining how bribes had been paid to secure building permits in the country. The Times found that Wal-Mart executives did not notify any law enforcement officials in either country. The scandal is likely to cut more than $10 billion from the retail chain’s market value.
For more info, check out: Wal-Mart Bribery Scandal Heats Up