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« JP Morgan China hirings trigger SEC probe | Main | China Corruption Blotter (August 16, 2013) »
Friday
Aug162013

Wal-Mart's whopping FCPA tab -- $300 million and climbing

Wal-Mart said Thursday it expects to spend between $75 million and $80 million for each of the next two quarters for FCPA matters and compliance programs.

It spent $82 million on FCPA and compliance during its fiscal second quarter ended July 31, $12 million to $17 million above its estimate.

The world's largest retailer has now spent more than $300 million on FCPA and compliance related matters.

Wal-Mart started an internal FCPA investigation in 2011. The DOJ and SEC are also investigating the company.

Last year, the New York Times reported in a Pulitzer Prize-winning story that Wal-Mart's Mexico unit paid $24 million in bribes to speed up licensing and permitting for new stores. The paper said top managers in the U.S. covered up the bribery after learning about it.

In the first fiscal quarter of 2013, Wal-Mart spent $73 million, up to $45 million more than it budgeted.

Its investigation has spread from Mexico to other countries, including India and China.

Last year, it spent $157 million for FCPA and compliance matters.

On Thursday, it reported total revenue for the quarter ended July 31 of $116.9 billion with net income of $4.1 billion.

Reader Comments (1)

By not taking foreign corruption serious it will cost Wal-Mart over $300 million. A company with the size and resources that Wal-Mart have this should not have happen. It appears that its compliance division was asleep. Or maybe for them it was beneficial to bribe and secure business then pay FCPA violation fines later.
August 19, 2013 | Unregistered CommenterJ Farrow
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