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ncampion
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Wal-Mart bribes Mexican Officials?
So what's so unusual about this? Isn't that the way most business is done in Mexico?
http://www.dailyfinance.com/article/report-wal-mart-hushed-u...
[Edited on 4-22-2012 by BajaNomad]
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Taco de Baja
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What's the big deal? really?
Lots of companies in the USA, Mexico and all over the world grease the hands politicians and officials to move things along a little faster. What the
heck do people think the job of a "lobbyist" is? Just to convince the officials with words? Ha!
But of course, since the "evil" Walmart is involved, this will turn into a big story. The fact that Wally-world is Mexico's largest private employer,
is not relevant.
It would sure be interesting to find out the "donations" from companies like Coke, Micky-D's, GM, Ford, Kimberly-Clark, and Big Oil to the Mexican
officials.
Truth generally lies in the coordination of antagonistic opinions
-Herbert Spencer
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DENNIS
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During the Reagan administration, I distinctly remember reading that bribes paid in Mexico by US businesses trying to establish a foothold in the
newly opening market, would be tax deductable. Don't know if it holds true today, but that might explain the free and easy attitude behind paying
bribes for business.
Besides, you can't buy that which isn't for sale.
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thebajarunner
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Not likely
| Quote: | Originally posted by DENNIS
During the Reagan administration, I distinctly remember reading that bribes paid in Mexico by US businesses trying to establish a foothold in the
newly opening market, would be tax deductable. Don't know if it holds true today, but that might explain the free and easy attitude behind paying
bribes for business.
Besides, you can't buy that which isn't for sale. |
Dennis
I have no doubt that you read that somewhere....
but the reality is simple, the Federal Tax Code is very specific and never, ever allows deductions for bribes.
Now, we can fine tune this a bit, and of course we can always find legitimate (ahem) places close to the politician heart that will be eligible for
deduction.
And, as pointed out, no problem deducting the cost of "lobbying"
But since most lobby dudes are ex politicians, well, we know that they are full of integrity and only "doing the right thing"
So, bribery- no
Influence- you bet
That is just the way it works,
You know the Golden Rule, I hope
"He who has the gold, makes the rule"
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DENNIS
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Yeah....I never imagined they called it a bribe. Probably just mixed it into expenses.
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bajachris
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Do you know why there's such a fight against Walmart? Because they don't accept Unions! The unions will stop at nothing to spread to every large
chain store.
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danaeb
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| Quote: | Originally posted by DENNIS
Yeah....I never imagined they called it a bribe. Probably just mixed it into expenses. |
If proven true, the FCPA isn't just going to slap their wrists. The fines can be huge, even for WalMart.
http://www.foreign-corrupt-practices-act.org/fcpa-guide/4-gu...
Along with the fines, there is also the potential loss of licenses to operate. This is usually threat enough to keep most businesses from doing it.
I worked for a big-3 oil company. Everyone, and I do mean everyone in the company had yearly mandatory training on the FCPA provisions. They took it
VERY seriously.
[Edited on 4-22-2012 by danaeb]
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DENNIS
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If WalMart has their way, they'll be the only retailer left standing. Would there be any ant-trust issues here?
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DENNIS
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| Quote: | Originally posted by danaeb
This is usually threat enough to keep most businesses from doing it.
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I have to imagine they've found a way to share and hide gratuities without telling the FCPA folks.
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Gypsy Jan
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Here is the CNN Update on the Story
http://www.cnn.com/2012/04/22/business/walmart-mexico-probe/
“Travel is fatal to prejudice, bigotry, and narrow mindedness.”
—Mark Twain
\"La vida es dura, el corazon es puro, y cantamos hasta la madrugada.” (Life is hard, the heart is pure and we sing until dawn.)
—Kirsty MacColl, Mambo de la Luna
\"Alea iacta est.\"
—Julius Caesar
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DENNIS
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Sooo....they pay a hefty fine. Then, they raise the price of dog food two% and they're back even in thirty days.
What are the going to do to the Walton family? Take away their birthdays?
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bajaguy
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this is news???
What's the big deal???........it's the ingrained culture in Mexico. If you want anything done, a little grease helps the wheels roll.
Plenty of posts here regarding Nomads involved in bribery.....with the police.....it's called Mordita.
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DENNIS
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| Quote: | Originally posted by bajaguy
What's the big deal???........it's the ingrained culture in Mexico. If you want anything done, a little grease helps the wheels roll.
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I guess there's a lot of folks up north that don't realize that fact of life.
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Gypsy Jan
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Another Update from wonkette,com
http://wonkette.com/470561/wal-mart-de-mexico-flips-a-peso-b...
“Travel is fatal to prejudice, bigotry, and narrow mindedness.”
—Mark Twain
\"La vida es dura, el corazon es puro, y cantamos hasta la madrugada.” (Life is hard, the heart is pure and we sing until dawn.)
—Kirsty MacColl, Mambo de la Luna
\"Alea iacta est.\"
—Julius Caesar
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J.P.
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| Quote: | Originally posted by DENNIS
If WalMart has their way, they'll be the only retailer left standing. Would there be any ant-trust issues here? |
Isn't that the way Russia went with the State stores?
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DENNIS
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| Quote: | Originally posted by J.P.
Isn't that the way Russia went with the State stores? |
I believe so. Cuba is still that way....I think.
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Cypress
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Wal Mart is an example of "free interprise". They have good prices and a good selection. You can buy food items, clothing, hardware, and anything else
you need at discount prices. Is that a bad thing?
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Phil S
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HECK NO, and THAT IZZZZZZZ a good thing.
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DENNIS
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I just get nervous when competition is eliminated.
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Bajahowodd
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As everyone has already posted, in reality, it is no big deal in Mexico. It's the way business is done.
That said, my own curiosity is about the business structure of Walmart. Seems to me that historically, Mexican law would not allow foreign partners to
own a majority of any company doing business in Mexico. Hence, virtually all the well recognized US brands such as Costco, Home Depot, Etc. have
historically been at least 51% owned by a Mexican partner.
As my internet search skills are somewhat limited, I must admit that although I've tried to ferret out the details, it does seem to me that Walmart de
Mexico is actually a wholly-owned subsidiary of the folks in the US. If that is true, despite the long-standing Mexican tradition of bribery, the US
State Department and those overseeing business and tax responsibilities could seemingly make life miserable for Walmart.
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