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Reacting to the New York Times’ investigation into allegations of a cover up of systematic bribery by Walmart in Mexico in 2005, UNI Global Union said South Africa and India should take on board this new evidence when considering whether or how to proceed with Walmart.



· UNI says allegations of Walmart corruption in Mexico should act as serious warning to countries where the company is expanding or seeking to expand, namely South Africa and India

· The New York Times reveals how Walmart hushed up a vast Mexico bribery case

· Evidence from former top executive that Wal-Mart de Mexico orchestrated bribery campaign to win market dominance

· Investigation shows Walmart executives focused on damage limitation rather than seeking justice





UNI General Secretary, Philip Jennings said, “The New York Times’ investigation is a damning indictment of Walmart. It may be the wealthiest retail company in the world but it is morally bankrupt. South Africa is currently reviewing how local companies can be protected against the Walmart invasion. The review should take notice of this alleged dirty tricks campaign to dominate the market in Mexico and the way some top Walmart executives who lead the company today chose to bury their heads in the sand and hush it up.”



Jennings added, “India too stands at a tipping point as it decides whether to open up its domestic market to retail giants such as Walmart. India should tread very carefully as these revelations from Mexico are pertinent and point to further evidence that Walmart should not be trusted. Walmart puts profit above all else and, if these allegations are proved, in this case, above the law.”



According the New York Times’ report a former top executive revealed the company had paid bribes to obtain permits across the whole of Mexico. The suspect payments amounted to more than $24 million. Initially Walmart organised an investigation but when the lead investigator found that, “There is reasonable suspicion to believe that Mexican and USA laws have been violated” and recommended the investigation be expanded, Walmart’s leaders shut it down.



The New York Times also reviewed thousands of Mexican government documents related to permit requests for Walmart stores where legal and bureaucratic obstacles disappeared after payments were made. The bribes were described by the former Walmart top executive who brought the allegations to the New York Times’ attention as “working the dark side of the moon.”



Jennings concluded, “This, if proved, is a total moral eclipse and South Africa, India and other countries where Walmart is looking to expand should stay vigilant and make certain that conditions are put in place to protect them from such illegal and aggressive practices. We are contacting the Indian and South African authorities to ensure they are full aware of the implications of this case.”



UNI Global Union is a global union based in Nyon Switzerland representing more than 20 million workers from over 900 trade unions in the services industries.





Read the full New York Times’ report here: http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html?_r=2&hp