Wal-Mart’s Asia chief faces Indian graft probe panel
23 Mar 2013
Walmart's Asia president and chief executive Scott Price today deposed before a panel set up almost three months back to look into allegations that the retail giant lobbied and paid bribes to gain access to the Indian market.
The judge conducting the enquiry, Mukul Mudgal, former chief justice of the Punjab and Haryana High Court, has sought further details from Wal-Mart executives by 9 April.
The government has set a deadline of 30 April for concluding the probe into the matter, which had rocked the winter session of Parliament.
Following media reports on Walmart disclosures before the US Senate that it had spent $25 million on lobbying with US lawmakers over a period of four years on various issues, including gaining enhanced market access for investment in India, opposition parties had asked for an investigation into the matter.
This came at a time when there was already uproar against the Indian government for allowing 51-per cent foreign direct investment in multi-brand retailing.
Apart from officials of Walmart, the government-appointed committee also met representatives of the Bharti group, the joint venture partner for the American chain's wholesale business in India. Walmart and Bharti intend to extend their tie-up for a retail foray as well.
"After discussions, it was decided to await responses of the above companies to the queries raised by the committee," the corporate affairs ministry said. The ministry is providing administrative support to the panel.
The committee had also sought information from the general public on the matter and is currently examining those responses.
A Walmart India spokesperson said the company was cooperating with the government and the Mudgal committee. "Under US law, on a quarterly basis, all companies which meet certain time and expenses thresholds, are required to disclose issues and expenditures spent in connection with contacts with the United States government, including staffing cost, association dues, and payments to consultants," the spokesperson said. "This is not unique to Walmart."
Under US law, all organisations which spend more than $12,500 per quarter on lobbying and employ even one lobbyist must register and file quarterly reports.
"Our business interest in India was discussed with US government officials, along with 50 or more other topics, during a three-month period. Our Washington office naturally had discussions with US government officials about a range of trade and investment issues that impact our businesses in the US and worldwide and identified those in accordance with the law," the spokesperson added.
