Bharti Wal-Mart goes all out to come clean as charges fly

Amid demands by the Opposition for an independent probe into disclosures on lobbying made by Walmart for gaining market access, the US retail giant today clarified that money for lobbying was not used for Indian contracts.

“These disclosures have nothing to do with political or governmental contacts with India government officials,” Walmart said in a statement.

On Tuesday, the Indian government had agreed to an inquiry but did not give in to Opposition demands for a judicial probe or an inquiry by the joint parliamentary committee.

According to lobbying disclosure reports filed by Wal-Mart with the US Senate, the retail giant disclosed that it had paid $25 million over four years to lobby US lawmakers to help gain access to foreign markets.

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There was just one mention of India in the report but equating lobbying in US with bribery, the Opposition once again tried to push the UPA into a corner over its decision to allow FDI in retail.

“This money was spent in India and this question arises as to on what did they spent this money? To whom all have they given this money?“opposition lawmaker Yashwant Sinha, chairman of parliament’s finance committee and a former finance minister, had said yesterday.

However, Wal-Mart’s local joint venture partner Bharti Walmart had on Monday denied allegations that it spent money in India to gain market access here.

“These allegations are entirely false. In accordance with US law, US companies are required to disclose the issues and expenditures associated with lobbying on a quarterly basis,” a Bharti Walmart spokesperson said in a statement, reported CNN IBN.

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The expenditures are a compilation of expenses associated with staff, association dues, consultants and contributions spent in the US, it added.

Meanwhile, PTI reported Wal-Mart Chief Executive Officer Mike Duke as saying that he will be “patient” and is confident that things will be worked out in India for the company.

“I still believe that in India things will get worked out. I am confident that (India) is a country that has such an opportunity to help both the farmers, those that are producing products for consumers all the way through the supply chain to the consumer,” Duke said at a Council on Foreign Relations event in New York.

Bharti Wal-Mart is, however, going one step ahead in trying to come clean. The company has asked all landlords of its stores in India to sign an anti-bribery agreement. The landlords are expected to give undertakings saying they are not party to and will not indulge in any corrupt practices,while Bharti will also get the rights to periodically inspect their books an Economic Times report said today.

[caption id=“attachment_554247” align=“alignleft” width=“380”]  While the anti-bribery drive is a positive step towards ensuring transparency, it will not go down well with landlords and builders as most real estate deals in India are done partly in black,and off-the-record. AP[/caption]

While the anti-bribery drive is a positive step towards ensuring transparency, it will not go down well with landlords and builders as most real estate deals in India are done partly in black,and off-the-record. Secondly, all structures require several government approvals and the only way to fast-track them is bribes.

Looks like Wal-Mart will have to spend a couple of more months lobbying, but this time it would be with builders and landlords rather than the government.