Wal-Mart paid bribes worth millions of dollars in India, claims report
A report stated that the American multinational made thousands of payments to low-level officials.
A federal investigation by the United States into Wal-Mart's operations in India found evidence of bribery worth millions of dollars, the Wall Street Journal reported on Monday. Thousands of small payments were made, some as low as $5, and most less than $200, mainly to low-level customs and real estate officials to speed up government processes, the report said.
However, Wal-Mart will probably not be penalised as its operations in India are not profitable, and it is thus shielded under the United States’ Foreign Corrupt Practices Act. The three-year-long inquiry was initially looking into the multinational retail corporation’s dealings in Mexico.
The company has not yet responded to the Wall Street Journal's report.
Wal-Mart had entered a supermarket joint venture with Indian firm Bharti Enterprises in 2007 before they split up in 2013. Since then, the MNC has focused only on wholesale business in India. The American company had earlier been accused of lobbying with Indian officials for foreign direct investment in the country.