Walmart to pay $282 million over foreign corruption charges

Associated Press

ALEXANDRIA, Va.

Walmart agreed Thursday to pay $282 million to settle federal allegations of overseas corruption, including funneling more than $500,000 to an intermediary in Brazil who was known as a “sorceress” for her uncanny ability to make construction permit problems disappear.

U.S. authorities went after Walmart under the Foreign Corrupt Practices Act, which prohibits American companies operating abroad from using bribery and other illegal methods.

The nation’s biggest store chain settled both civil charges brought by the Securities and Exchange Commission and a criminal case built by federal prosecutors in Virginia. It said the two settlements close the books on federal investigations that stretch back to 2012 and have collectively cost the company more than $900 million.

“We’re pleased to resolve this matter,” said Walmart President and CEO Doug McMillon in a statement. “Walmart is committed to doing business the right way, and that means acting ethically everywhere we operate. We’ve enhanced our policies, procedures and systems and invested tremendous resources globally into ethics and compliance, and now have a strong Global Anti-Corruption Compliance Program.”

In the criminal case, Walmart agreed to pay $138 million to avoid prosecution, while its Brazilian subsidiary, WMT Brasilia, pleaded guilty to violating the Foreign Corrupt Practices Act. As for the civil case, the SEC announced a $144 million settlement against Walmart for “failing to operate a sufficient anti-corruption compliance program” in Brazil, China, India and Mexico.