MEXICO CITY, (Reuters) – Whether you are the world’s No. 1 retailer or a humble street vendor, paying public officials a bribe may be the quickest way to get your business growing in Mexico.
The New York Times reported this weekend that Wal-Mart Stores Inc investigators probing its Mexican operations found a paper trail of hundreds of suspect payments worth more than $24 million made to grow its business there, and that the company then quashed the investigation
Wal-Mart said it was “deeply concerned” about the allegations, which have lifted the lid on a culture of corruption in Mexico that many of its residents take for granted.
One global study said Mexican firms were perceived to be the third most likely behind those in China and Russia to pay bribes abroad.
When 40-year-old market stall owner Adrian Martinez decided to open a second spot to sell his wares in Mexico City, he said he figured it was better to pay a bribe to a “gestor”, or intermediary, to get a permit than wait for authorities to process his request.
Martinez paid the equivalent of several hundred dollars for the permit, a fraction of the sum the New York Times said Wal-Mart de Mexico – the country’s top retailer – had given to middlemen to help it get permits to build and open new stores.
“I greased his palm,” said Martinez, who said he earns about 400 pesos ($30) a day selling clothes and cosmetics. “Lots of others do the same here. If you want to do things by the book, you’ll be waiting a long time.”
According to the New York Times, Wal-Mart came to the same conclusion as it rapidly expanded its business from an initial joint venture in 1991 to becoming Mexico’s top retailer and biggest private employer, with a network of more than 2,000 stores and restaurants.
