Wal-Mart bribery probe finds few major offenses in Mexico: WSJ

A federal probe into allegations of corruption at Wal-Mart Stores Inc's (WMT.N) Mexico operations has found few major offenses, and is likely to result in a much smaller case than investigators expected, the Wall Street Journal reported, citing people familiar with the situation.

The three-year investigation is mostly complete and the case could be resolved with a fine and without any criminal charges, the newspaper said.

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As part of the same probe, investigators found evidence of bribery in India, centering on widespread but relatively small payments made to local officials, the Journal said. Wal-Mart is likely to face U.S. foreign-bribery charges under the Foreign Corrupt Practices Act over those payments, the newspaper said.

Wal-Mart spokesman Greg Hitt said the company was cooperating with the government on the matter. A Justice Department spokeswoman declined to comment on the status of the investigation.

U.S. lawmakers launched an investigation after the New York Times reported in 2012 thatWal-Mart de Mexico (Walmex) had engaged in a multi-year campaign of bribery to build its business.

See photos of Wal-Mart stores in Mexico: 
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A woman looks at a pair of shoes at a Wal-Mart de Mexico Suburbia department store in Mexico City, Mexico, on Friday, Oct.17, 2014. Wal-Mart de Mexico third-quarter sales increased 4.2 percent, the company said in an earnings conference call on Oct. 20. Photographer: Susana Gonzalez/Bloomberg via Getty Images

The NYT report said a senior Wal-Mart lawyer had received an email from a former Walmex executive in September 2005 describing how Wal-Mart de Mexico had paid bribes to obtain permits to build stores across the country.

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According to the Times, Wal-Mart sent investigators to Mexico City and found a paper trail of suspect payments totaling more than $24 million.

But the company's top executives shut down the probe and did not notify U.S. or Mexican law enforcement officials until after the newspaper informed Wal-Mart that it was looking into the issue.