The disclosure is likely to provide ammunition to political parties that are planning to corner the government on its decision to allow FDI in multi-brand retail when Parliament reconvenes next week for the winter session.
"Since the implementation of the global review and enhanced anti-corruption compliance programs, the company has identified or been made aware of additional allegations regarding potential FCPA (Foreign Corrupt Practices Act) violations. When allegations are reported or identified, we, together with our third party advisors, conduct inquiries and when warranted, we open investigations," Wal-Mart said in a statement late on Thursday.
"We have inquiries or investigations regarding allegations of potential FCPA violations in a number of foreign markets where we operate regarding FCPA allegations, including but not limited to Brazil, China and India. This is in addition to the ongoing investigation in Mexico," the company said.
The disclosure, made in a regulatory filing, suggests Walmart has uncovered evidence into potential violations of FCPA, as the fallout continues from a bribery scheme involving the opening of stores in Mexico that was the subject of a New York Times investigation in April.
Internal probe unrelated to FDI lawsuits: Wal-Mart
Walmart's disclosure that it is investigating alleged violations of the US anti-bribery law does not necessarily mean that it has definitely paid bribes in China, India and Brazil, New York Times has quoted an unnamed source as saying. "But it did indicate that the company had found enough evidence to justify concern about its business practices in the three countries ? concerns that go beyond initial inquires and that are serious enough that shareholders need to be told," the newspaper said.
It also said that the Justice Department and the Securities & Exchange Commission are also looking into the company's compliance with the anti-bribery law. The FCPA treats payment of bribes or offering inducements by US companies and individuals or even foreign companies listed on US stock exchanges as an offence. The law enacted over a decade ago was part of a global drive against corrupt practices and money laundering.
When contacted, a Walmart India spokesperson declined to comment on specific allegations until investigations are concluded by the company. "This investigation is unrelated to recently publicized public interest lawsuits related to claims that Walmart is in violation of FDI laws," the spokesperson said in an email to TOI. The BJP said the latest disclosure by the US retailer makes the issue of allowing FDI in multi-brand retail "murkier". "We need to have answers as to why the government is in a hurry to allow FDI in multi-brand retail. There are several questions which need to be answered," said BJP spokesperson Nirmala Sitharaman.
Times View
There is a serious danger here that the investigations into whether or not Walmart paid bribes in India will be used as a pretext to scupper FDI in retail. That would be a serious mistake. Allegations of bribery must be probed thoroughly not just by Walmart or the US authorities under their laws, but by Indian agencies too. If they are found true, action must be taken against those indulging in corrupt practices. But even if they are found true, that would be no reason to block FDI in multi-brand retail. FDI in retail must be allowed not because Walmart or some other foreign retail chain wants it, but because it is in the interests of India's consumers and farmers.
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