Walmart found guilty of bribery, agrees to pay fine of $28 crore in Brazil

New York/New Delhi, Jun. 21(HS): After seven years of investigation by Department of Justice and Securities and Exchange Commission of US, the retail giant Walmart Company has been found guilty of giving bribes to different governments through middlemen across continents to get permits and other approvals from July 2000 to April 2011.The of $28 crore has been imposed for this federal crime by its Brazil subsidiary and company has agreed to pay the same.

These dubious payments to middlemen were referred as professional fees or incidental expenses in books of accounts in India and Mexico. While in Brazil it was referred as payment to sorceress (called “genie”) in documents. The middlemen were paid millions of dollars by subsidiaries of this company to obtain permits and approvals of government .

The employees brought these irregularities to the notice of top management, but were not heard as company wanted to grow quickly with low costs. However, the issues in Mexico went out of control and internal investigation was carried out which reached nowhere and the complaint regarding improper recording keeping was filed under Foreign Corrupt Practices Act in Brazil.

It is noteworthy that presently the US federal regulators appreciate the steps taken by company to curb corruption in this span of seven years.