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Wal-Mart India middlemen fired, demand payment

Agents for Wal-Mart’s joint venture in India who ‘procured numerous licenses’ from the government threatened legal action after they were fired and not paid money they say they’re owed.

Friday’s Economic Times said the ‘so-called consultants, including middlemen in government offices and small time legal firms,’ are claiming around $250,000.

The agents, about two dozen from various cities including Banaras, Ludhiana and Jaipur, gathered last week at the Bharti Walmart office in Delhi to make their demands.

In the U.S., the DOJ and SEC are investigating whether Wal-Mart violated the FCPA by bribing government officials in Mexico, China, and India.

Last month Wal-Mart said it has spent $300 million on the investigation and related compliance matters since 2011.

Wal-Mart’s India joint venture suspended its chief financial officer and others last year as part of the bribery investigation there.

The report Friday from India didn’t give further details about the money the agents say they’re owed or how it was spent.

Wal-Mart’s 50-50 partner in India is Bharti Enterprises.

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Richard L. Cassin is the Publisher and Editor of the FCPA Blog. He can be contacted here.

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