2
March 13, 2013 Honorable Representative Joseph Crowley United States Congress Dear Representative Crowley, We are writing to you as members of the Walmart Free NYC coalition to request a meeting with you and to urge you to support the call by Rep. Cummings and Rep. Waxman for a full investigation into potential violations of the Foreign Corrupt Practices Act (FCPA) and a subsequent cover-up by Walmart Stores, Inc. We urge you to call on Walmart to cooperate fully with the investigation, including providing testimony, under oath, from CEO Mike Duke, former Walmart International General Counsel Maritza Munich, and other executives, as called by Congress. As you are aware, in April of last year, the New York Times uncovered significant evidence of violations of the FCPA by Walmart in Mexico. 1 A second article, written in December, detailed a massive bribery scheme designed to allow Walmart to illegally build a store on ancient ruins near Teotihuacan, a national Mexican archeological treasure and UNESCO World Heritage Site. 2 The Times’ coverage exposes how executives in Walmart’s Bentonville headquarters were not only aware of the bribery allegations, but took actions to scuttle any formal investigations and keep the issue from becoming public. On January 10, 2013, Rep. Cummings and Rep. Waxman wrote to Walmart expressing further concern about documents that they received as part of their ongoing investigation into the company’s potential violations of the FCPA and subsequent cover-up. 3 The letter read, in part, “We are concerned that your company’s public statements that the company was unaware of the allegations appear to be inconsistent with documents we have obtained through our investigation. Contrary to Wal-Mart’s public statements, the documents appear to show that… [Walmart CEO Mike Duke was] personally advised of the allegations in October 2005.” 4 The documents received by Rep. Cummings and Rep. Waxman also further establish the apparent key role played by Maritza Munich, the former General Counsel of Walmart International. Yet, according to the letter, Walmart has blocked access to Ms. Munich, despite requests from Rep. Cummings and Rep. Waxman for more than six months. Fundamentally, this inquiry is about accountability for the world’s largest retailer. Walmart’s internal oversight mechanisms appear to have failed repeatedly, the company appears to have violated the law on a massive scale, and the public has suffered. These types of failures of internal controls can often lead to 1 “At Wal-Mart in Mexico, a Bribe Inquiry Silenced,” by David Barstow, The New York Times, April 21, 2012. http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html 2 “How Wal-Mart Used Payoffs to Get Its Way in Mexico,” by David Barstow and Alejandra Xanic von Bertrab, The New York Times, December 17, 2012. http://www.nytimes.com/2012/12/18/business/walmart-bribes-teotihuacan.html 3 The letter that the Representatives sent to Walmart CEO Mike Duke on January 10, 2013 is available online at http://democrats.oversight.house.gov/images/stories/Final%20Wal-Mart%20Letter.pdf . 4 Documents indicating that Mr. Duke was advised of the allegations in October 2005 are available online at http://democrats.oversight.house.gov/images/stories/Maritza%2010.15.2005%20email%20redacted.pdf

Ltr to NY Congressional-Walmart Investigation (2)

Embed Size (px)

Citation preview

Page 1: Ltr to NY Congressional-Walmart Investigation (2)

March 13, 2013

Honorable Representative Joseph Crowley

United States Congress

Dear Representative Crowley,

We are writing to you as members of the Walmart Free NYC coalition to request a meeting with you and to

urge you to support the call by Rep. Cummings and Rep. Waxman for a full investigation into potential

violations of the Foreign Corrupt Practices Act (FCPA) and a subsequent cover-up by Walmart Stores, Inc. We

urge you to call on Walmart to cooperate fully with the investigation, including providing testimony, under

oath, from CEO Mike Duke, former Walmart International General Counsel Maritza Munich, and other

executives, as called by Congress.

As you are aware, in April of last year, the New York Times uncovered significant evidence of violations of the

FCPA by Walmart in Mexico.1 A second article, written in December, detailed a massive bribery scheme

designed to allow Walmart to illegally build a store on ancient ruins near Teotihuacan, a national Mexican

archeological treasure and UNESCO World Heritage Site.2 The Times’ coverage exposes how executives in

Walmart’s Bentonville headquarters were not only aware of the bribery allegations, but took actions to scuttle

any formal investigations and keep the issue from becoming public.

On January 10, 2013, Rep. Cummings and Rep. Waxman wrote to Walmart expressing further concern about

documents that they received as part of their ongoing investigation into the company’s potential violations of

the FCPA and subsequent cover-up.3

The letter read, in part, “We are concerned that your company’s public statements that the company was

unaware of the allegations appear to be inconsistent with documents we have obtained through our

investigation. Contrary to Wal-Mart’s public statements, the documents appear to show that… [Walmart CEO

Mike Duke was] personally advised of the allegations in October 2005.”4

The documents received by Rep. Cummings and Rep. Waxman also further establish the apparent key role

played by Maritza Munich, the former General Counsel of Walmart International. Yet, according to the letter,

Walmart has blocked access to Ms. Munich, despite requests from Rep. Cummings and Rep. Waxman for more

than six months.

Fundamentally, this inquiry is about accountability for the world’s largest retailer. Walmart’s internal

oversight mechanisms appear to have failed repeatedly, the company appears to have violated the law on a

massive scale, and the public has suffered. These types of failures of internal controls can often lead to

1 “At Wal-Mart in Mexico, a Bribe Inquiry Silenced,” by David Barstow, The New York Times, April 21, 2012.

http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html 2 “How Wal-Mart Used Payoffs to Get Its Way in Mexico,” by David Barstow and Alejandra Xanic von Bertrab, The New York Times,

December 17, 2012. http://www.nytimes.com/2012/12/18/business/walmart-bribes-teotihuacan.html 3 The letter that the Representatives sent to Walmart CEO Mike Duke on January 10, 2013 is available online at

http://democrats.oversight.house.gov/images/stories/Final%20Wal-Mart%20Letter.pdf. 4 Documents indicating that Mr. Duke was advised of the allegations in October 2005 are available online at

http://democrats.oversight.house.gov/images/stories/Maritza%2010.15.2005%20email%20redacted.pdf

Page 2: Ltr to NY Congressional-Walmart Investigation (2)

adverse consequences, including issues like the recent death of 117 workers in a factory fire at a Walmart

supplier in Bangladesh5 and controversy and legal issues regarding Walmart’s sale of firearms.

6

We would appreciate the opportunity to meet with you as soon as possible to discuss this request and how best

to support the calls for real accountability for Walmart and its executives. We will call your office to follow-

up on this request. You can also reach us directly via email at [email protected].

Sincerely,

Kalpona Akter, Executive Director, Bangladesh Center for Worker Solidarity

Babul Akhter, General Secretary, Bangladesh Garment & Industrial Workers Federation

In solidarity with members of the Walmart Free NYC coalition:

Stuart Appelbaum Rich Whalen John R. Durso

President International Vice President and Director President

Retail Wholesale Department Store Union UFCW Region 1 Local 338

RWDSU/UFCW

Frank S. Bail Matt Ryan Bertha Lewis

President Executive Director President

Local 1102 ALIGN The Black Institute

RWDSU/UFCW The Alliance for a Greater New York

Joann Lo Louis Mark Carotenuto Carrie Gleason Deb Axt

Executive Director Deputy Trustee Executive Director Co-Executive Director

Food Chain Workers Alliance UFCW Local 348-S Retail Action Project Make the Road NY

Andrew Friedman Max Bruny Josh Zinner Jonathan Westin

Executive Director President Co-Director Executive Director

Center for Popular Democracy UFCW Local 888 NEDAP New York Communities for Change

5 “3 Walmart Suppliers Made Goods in Bangladesh Factory,” by Steven Greenhouse, The New York Times, December 5, 2012.

http://www.nytimes.com/2012/12/06/world/asia/3-walmart-suppliers-made-goods-in-bangladeshi-factory-where-112-died-in-fire.html 6 Final Judgement and Permanent Injunction of Walmart Stores in the State of California. Link here: http://bit.ly/W77Xlp