Wal-Mart allegedly paid millions of dollars in bribes to low-ranking officials in India in return for regulatory clearances, according to The Wall Street Journal.
"Much of the suspected bribery investigators unearthed in India involves thousands of small payments to low-level local officials to help move goods through customs or obtain real-estate permits," the WSJ reported. "The vast majority of the suspicious payments were less than $200, and some were as low as $5, the people said, but when added together they totaled millions of dollars."
But because Wal-Mart, the world's largest retailer by revenue, did not make significant profits from its operations in India, it is unlikely the company will face sizable penalties under the U.S. Foreign Corrupt Practices Act (FCPA), as penalties are usually determined by how much profit a company made through misconduct, sources said.
The details emerged during an ongoing three-year U.S. federal investigation into allegations of widespread corruption at Wal-Mart stores around the world. The investigation began after The New York Times reported in December 2012 that the retailer's Mexican unit allegedly paid foreign officials more than $24 million in bribes to win construction permits.
Investigators have completed most of their probe without finding any serious misconduct, and the issue may be resolved with a fine and no criminal charges against individual Wal-Mart executives, people familiar with the probe told the WSJ.
Wal-Mart spokesperson Jo Newbould released a statement to Quartz regarding the allegations of corruption in India, saying "we are cooperating fully with the Government in this matter and can't comment further on that process."
"For Walmart, compliance with the US Foreign Corrupt Practices Act and other anti-corruption laws is a key priority. We work closely with third-party compliance experts on support and training as we continuously review and strengthen our programs around the world."
