Lest there be doubt that Wal-Mart Stores Inc. is taking seriously the allegations of widespread bribery in its Mexico subsidiary, in October the retailing giant announced a shake-up of its in-house legal function with a clear focus on compliance. And at least part of the reason was revealed in November, when the company filed a form 8-K with the Securities and Exchange Commission. It’s not just Mexico. The company is also investigating possible violations of the Foreign Corrupt Practices Act in its businesses in Brazil, China, and India.
The situation in India seems particularly volatile. An investigative team consisting of auditors from KPMG and lawyers from Greenberg Traurig is examining the operation at Bharti Walmart, the company’s 50-50 joint venture with India’s Bharti Enterprises, according to The Times of India . At press time in late November, the company’s chief financial officer, who doubled as its acting legal counsel, and the four other members of its legal team were suspended pending the completion of the investigation, the paper reported. (A Wal-Mart spokesman confirmed the suspensions, but declined to comment, saying: “It would be inappropriate for us to comment further until we have finished the investigation.”)
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