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FBN’s Gerri Willis on the investigation into allegations of bribery by Wal-Mart.
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Our nation's biggest retailer Wal-Mart known for cutting its prices but this week the company's stock price slashed by investors fleeing from the Mexican bribery scandal.
The story broke this weekend the mega retailer has a Paper trail apparently of hundreds of questionable payments to Mexican officials.
Over 24 million dollars worth.
Now granted that's a pittance compared to Wal-Mart sales and earnings even so it's illegal under a law called the foreign corrupt practices act.
Federal officials are investigating here.
Mexico doing -- something there Wal-Mart faces fines and the executives in charge could -- jail time.
A black -- for one of the world's biggest companies.
And wal mart's recent successes in large part thanks to its Mexican expansion.
Opening a store and -- there last year worldwide get this one in five wal mart's is in Mexico.
It's that country's largest private employer and the stores represent half of the Mexico's retail market.
It's already costing the company financial -- financially that is this whole scandal Wal-Mart shares lost ten billion dollars in value in the day the scandal broke.
The shares continue to go down.
This apparently just the beginning according to some sources Goldman Sachs as.
The average anti bribery probe from the government takes three years and ends in a penalty of 9% of profits.
Bad bad bad Wal-Mart that's the way big media reads the story.
Look wal mart's costs pale in comparison -- the cost to countries that offer the bride.
Studies show bribery and corruption takes away nearly a tenth of Mexico's GDP -- -- of the country's output siphoned off on productively.
The problem is pervasive it's to a survey show Mexicans are asked for a bribe every one in ten times they deal with the public service.
-- there's bureaucracy look there's bribery getting a building permit in Mexico takes 81 days vs 26 days here in the US.
Did you ever think our government could look at -- -- Transparency international charts of bribed players -- index.
The likelihood of companies -- business by greasing the wheels that's what -- -- Mexico ranked as the number line.
The worst.
Behind only China and Russia.
-- right here at home the economy is black the growth is happening overseas in developing countries for corruption is cultural.
And American companies want to chase those profits here's another case where American businesses are at a competitive disadvantage because of our lots.
Overseas brides are like steroids in baseball if you don't break the rules you're gonna -- left behind.
The talk about who gets hurt.
But it's important to think about who gets helped here the real beneficiaries of wal mart's stock -- attitude to our nation's anti bribery laws.
Mexican residents.
Wal-Mart brought that country a 188000.
Jobs.
-- so wide range of goods at prices they otherwise might not have had access to you.
The corrupt practices act may have outlived its usefulness.
