NEW YORK (AP) — Wal-Mart Stores Inc.'s CEO Mike Duke found out in 2005 that the retailer's Mexico unit was handing out bribes to local officials, according to emails obtained by lawmakers.
The lawmakers say the emails contradict earlier claims by Wal-Mart that executives weren't aware of bribes being made by the company.
Democratic Congressmen Elijah E. Cummings and Henry A. Waxman, who are investigating bribery charges at Wal-Mart's Mexico division, on Thursday released emails that indicate that Duke and other senior Wal-Mart officials were informed multiple times starting in 2005 about bribes being made in the country. U.S. law forbids American companies from bribing foreign officials.
The lawmakers shared the emails, which they say they got from a confidential source, with Wal-Mart on Wednesday, and sent a letter to Duke asking for a meeting to discuss them.
"It would be a serious matter if the CEO of one of our nation's largest companies failed to address allegations of a bribery scheme," according to the letter written by Waxman and Cummings to Duke.
Brooke Buchanan, a Wal-Mart spokeswoman, said on Thursday that the letter that Waxman and Cummings wrote to Duke "leaves the wrong impression that our public statements are contradicted by the information they released today."
Allegations first surfaced in April that Wal-Mart failed to notify law enforcement that company officials authorized millions of dollars in bribes in Mexico to speed up getting building permits and gain other favors. Wal-Mart has been working with government officials in the U.S. and Mexico on that investigation.
The company has been conducting an internal investigation into the matter. And last November, the retailer said in a filing with the Securities and Exchange Commission that it was looking into potential U.S. bribery law violations in Brazil, China and India.
In a statement issued on Thursday, Wal-Mart said that it has been providing information to the Department of Justice and the Securities and Exchange Commission, including the documents that were released by lawmakers on Thursday. The world's largest retailer also said that it is exploring other ways to make additional information available
"We are committed to having a strong and effective global anti-corruption program everywhere we operate and taking appropriate action for any instance of non-compliance," said Buchanan.
The bribery allegations were first reported by the New York Times. Last month, the paper published another story focusing on how Wal-Mart's Mexico division offered large payoffs to get things that the law prohibited. Continued...