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Lawmakers Probe Wal-Mart Tax Evasion, Money Laundering

The retailer's Mexican bribery scandal continues to expand.

Wal-Mart Stores Inc.’s Mexican bribery scandal continues to expand.

Reps. Elijah Cummings (D., Md.) and Henry Waxman (D., Calif.) said in a letter to chief executive officer Michael Duke Tuesday that they had obtained internal company documents that suggest “Wal-Mart may have had compliance issues relating not only to bribery, but also to ‘questionable financial behavior’ including tax evasion and money laundering in Mexico.”

The lawmakers are investigating allegations that Wal-Mart fueled its Mexican expansion by paying bribes in violation of the Foreign Corrupt Practices Act.

The scandal started in Mexico, but has since widened to other countries.

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Cummings and Waxman said Wal-Mart has been uncooperative with their investigation and that they were giving Duke a “final opportunity to respond to our requests.

“Although you have stated on multiple occasions that you intend to cooperate with our investigation, you have failed to provide the documents we requested, and you continue to deny us access to key witnesses,” the lawmakers said.

Cummings and Waxman gave Duke until Aug. 28 to provide information regarding the case.

“We would like to give you an opportunity to respond to allegations against your company before releasing any investigative report and before making public any documents we have obtained as part of the investigation,” the lawmakers said.