Walmart settled a federal allegation of foreign corruption in a Virginia courthouse Thursday to the tune of $282 million.
Federal investigation of Walmart began in 2012 over suspicions that they had been violating the Foreign Corrupt Practices Act, which prohibits companies and individuals from bribing foreign officials in furtherance of a business deal, according to the Associated Press.
Among other allegations, Walmart is accused of paying $500,000 to a Brazilian government official referred to as a ‘sorceress’ known for her ability to make construction permit problems go away. Payments to the official were recorded as payments to a construction company, though many red flags indicated that the money went to a civil servant.
The large settlement also covered civil charges brought against Walmart by the Securities and Exchange Commission. Federal prosecutors and the SEC consider that the settlement effectively ends the investigation on the matter. Walmart is estimated to have lost over $900 million in the seven-year ordeal.
While Walmart avoided prosecution with their settlement, their Brazilian subsidiary, WMT Brasilia, pleaded guilty to violations of the Foreign Corrupt Practices Act. The SEC further cited Walmart for “failing to operate a sufficient anti-corruption compliance program” in not only Brazil, but also China, India, and Mexico.
