Shoppers are seen in front of a Wal-Mart store in Mexico City, August 15, 2012. Wal-Mart de Mexico shares fell more than 5 percent on Wednesday after two U.S. congressmen investigating bribery allegations at Mexico's top retailer said they had evidence that may point to tax evasion and money laundering. Walmex, as the company is known locally, is facing probes in the United States and Mexico over allegations that the company, controlled by Wal-Mart Stores Inc, bribed local Mexican officials to open stores more rapidly. REUTERS/Edgard Garrido (MEXICO - Tags: BUSINESS) Shoppers are seen in front of a Wal-Mart store in Mexico City, August 15, 2012. Wal-Mart de Mexico shares fell more than 5 percent on Wednesday after two U.S. congressmen investigating bribery allegations at Mexico's top retailer said they had evidence that may point to tax evasion and money laundering. Walmex, as the company is known locally, is facing probes in the United States and Mexico over allegations that the company, controlled by Wal-Mart Stores Inc, bribed local Mexican officials to open stores more rapidly. REUTERS/Edgard Garrido (MEXICO - Tags: BUSINESS)
David Welch Detroit
WalMart is coming under increasing pressure from US legislators, who say the retailer is not providing information on its internal corruption investigation, which is widening beyond Mexico and may include new evidence of tax evasion and money laundering.
Representatives Elijah Cummings and Henry Waxman, both Democrats, said in a letter to Walmart chief executive Michael Duke that Walmart de Mexico, Latin America’s largest retailer, might have engaged in money laundering and tax evasion in Mexico. The letter also said the investigation was looking at five nations besides Mexico “where risk was greatest”.
The two legislators wrote to Walmart in June, accusing the retailer of not providing documents and access to witnesses that they had previously requested.
In a second letter, dated August 14, they said they were giving the company a final opportunity to respond to requests for information.
“To date, you have not produced a single document we have requested,” they wrote.
Walmart is accused of violating the US Foreign Corrupt Practices Act by systematically bribing Mexican officials to open stores more quickly in the country. The bribes allegedly took place as recently as 2005. The scheme was first brought to light in April by the New York Times.
Lorenzo Lopez, a Walmart spokesman, declined to comment.
The politicians asked for documents that detailed any internal findings on the corruption probe and that explained how Walmart was changing its protocols for handling such issues.
“In addition, we have obtained internal company documents, including internal audit reports, from other sources suggesting that Walmart may have had compliance issues relating not only to bribery, but also to ‘questionable financial behaviour’, including tax evasion and money laundering in Mexico,” the congressmen said.
Cummings is a ranking member of the house oversight and government reform committee, and Waxman is a ranking member of the house energy and commerce committee.
Walmart de Mexico shares fell 6 percent at the close in Mexico City on Wednesday. Walmart fell as much as 3.3 percent yesterday as its outlook disappointed. The shares have gained 25 percent this year. – Bloomberg