[StillBored]

What about if he knew the cashier was stealing the money, was intentionally ignoring it, and maybe even cooking the books a little, to cover for that employee? Does lit change if the manager was benefiting from the theft in some way?

That sounds a lot closer to what happened.

[rayiner]

Show me in the SEC filing where it suggests Wal-Mart’s executive leadership did anything like that: https://int.nyt.com/data/documenthelper/1331-walmart-sec-set...

[Klinky]

It notes in there that they were aware their anti-corruption policies were inadequate, but then it took them like 7 years to really get a handle on it. There is certainly benefit gained by execs letting business growth continue, people rarely get promoted or bonuses for stifling growth. There is often little incentive for ethics, and their slow response seems to reinforce this notion.

[StillBored]

Did you read it? The bits I just read do nothing to invalidate the basic story here.

Try page 6...

Nice bits all over from walmarts own investigation:

"The final report that was sent to Walmart in December 2004 omitted references, contained in earlier versions, to MXN $45.6 million (approximately USD $4 million) paid to one of the gestores that Mexico Subsidiary Lawyer A alleged was corrupt."

Then there pieces where it talks about how the invoices are just lump sums rather than properly broken down and employees are claiming the the money is being given to the MX government officials..

"Investigator circulated a report concerning the Mexico Subsidiary allegations that stated that laws had been potentially violated, and recommended several additional investigative steps."

"Walmart did not follow the investigators’ proposed action plans. On or around February 7, 2006, Walmart tasked Mexico Subsidiary Lawyer B with leading the remainder of the investigation."

Of course none of this is going to be an email that says "hey this contractor is paying the government to speed up our permits, lets keep doing business with them."

No its all just looking the other way and doing the minimum to follow the letter of the law and using back channels to cut out the really incriminating parts.

[rayiner]

As to the first quote, you’re omitting the very next sentence: “While the draft report stated that the transactions reviewed were reasonably appropriate, complied with documentation and classification standards, and were compliant with local policies, legislation and generally accepted accounting principles, it also described “unusual” and “facilitating” payments made in connection with Mexico Subsidiary’s use of gestores.”

Note that the SEC filing specifically quotes the term “facilitating.” “Facilitating” payments—paying officials to do a non-discretionary duty faster—is not illegal under the FCPA. Bribery under the FCPA only includes payments to induce officials to exercise discretion in your favor.