Shares in Wal-Mart de Mexico y Centroamerica plummeted this week as allegations the company bribed officials to speed up store openings prompted many shareholders to offload the stock at a rate of knots. Meanwhile, concern that US regulators will pursue action against parent company Wal-Mart Stores for violations of the Foreign Corrupt Practices Act could have some far-reaching consequences for the world's largest retailer. Katy Askew reports.
Two US Congressmen have launched an investigation into allegations of bribery at Wal-Mart's Mexican operations, after reports emerged that it covered up some US$24m in payoffs to clear the way for store openings.
Wal-Mart de Mexico y Centroamerica saw its share price hit yesterday (24 April) as it revealed declining first-quarter margins and the market responded to the news that it was under investigation over bribery allegations.