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Article

17 Dec 2012

Author:
The New York Times

The Bribery Aisle: How Wal-Mart Got Its Way in Mexico

Wal-Mart longed to build in Elda Pineda’s alfalfa field. It was an ideal location...barely a mile from its ancient pyramids, which draw tourists from around the world...One major obstacle stood in Wal-Mart’s way...the town’s elected leaders had just approved a new zoning map...prohibit[ting] commercial development on Mrs. Pineda’s field...But...at the headquarters of Wal-Mart de Mexico, executives were not about to be thwarted...Instead...they decided to undo the damage with one well-placed $52,000 bribe...Wal-Mart de Mexico broke ground months later, provoking fierce opposition. Protesters decried the very idea of a Wal-Mart so close to a cultural treasure... The secret [of the bribes] held even after a former Wal-Mart de Mexico lawyer contacted Wal-Mart executives in Bentonville, Ark., and told them how Wal-Mart de Mexico routinely resorted to bribery...His detailed account...prompted an internal investigation...But...Wal-Mart’s leaders shut down the investigation in 2006...The Times’s examination reveals that Wal-Mart de Mexico...used bribes to subvert democratic governance — public votes, open debates, transparent procedures. It used bribes to circumvent regulatory safeguards that protect Mexican citizens from unsafe construction...INAH [the official guardian of Mexico’s cultural treasures] required excavations to be done with picks and shovels to minimize damage if digging uncovered ancient ruins. So the sight of bulldozers and backhoes stood out...Sergio Gómez, an archaeologist and researcher for INAH...knew that before the agency issued a permit, it first had to...[conduct] a formal archaeological survey...Yet Mr. Gómez had not seen any sign of a survey...Mr. Gómez was concerned enough to follow trucks from the site one day. When they dumped their loads, he could see fragments of pottery and other evidence of ancient remains...[includes full response to the article by David W. Tovar, a Wal-Mart spokesman]