Walmart-Stores said this week that it has recorded an aggregate accrual of $283 million concerning the possible resolution with U.S. enforcement authorities of a longstanding Foreign Corrupt Practices Act case.
Walmart first disclosed the potential FCPA violations in 2011, followed by a damning report published in the New York Times in 2012, painting a portrait of widescale corruption and bribery at Walmart. Since that time, Walmart has been cooperating with the U. S. Department of Justice and the U.S. Securities and Exchange Commission concerning their investigations.
“These discussions have progressed to a point that the company can now reasonably estimate a probable loss and has recorded an aggregate accrual of $283 million with respect to these matters,” Walmart stated in its latest SEC filing. “As the discussions are continuing, there can be no assurance that the company’s efforts to reach a final resolution with the government agencies will be successful or, if they are, what the timing or terms of such resolution will be.”
Keep in mind, Walmart’s Mexico issues are already costing the company plenty: To date, Walmart has spent a minimum of $837 million in additional investigative and compliance costs since 2011. The company said in its earnings presentation on Nov. 16 that in fiscal year 2018 it expects its third party FCPA- and compliance-related expenses to range between $50 million and $60 million.
No comments yet