Walmart’s Mexican affiliate routinely used bribes to open stores in desirable locations, according to a New York Times investigation published this week, which cites 19 instances of the retail giant paying off local officials. The Times first reported in April that Wal-Mart had intentionally stifled an internal probe into bribery at its Mexican affiliate Walmex. Mexico's anti-corruption body said it found no irregularities in the permits Wal-Mart received in the country, but that two audits remained underway. However in its report, the Times details specific instances in which Walmex allegedly paid off officials to expand in Mexico. The alleged payoffs often related to zoning laws and environmental permits that would have otherwise prevented Walmex's opening of new stores. Much of the report is focused on a store built near ancient ruins in Teotihuacan, north of Mexico City. The company has said it is looking in to the allegations. (New York Times)
Allianz to pay $12.3m US anti-bribery fine
Allianz has been fined £12.3m by the US Securities and Exchange Commission to settle charges that it violated the US Foreign Corrupt Practices Act through payments in Indonesia. The insurer is the latest German group to fall foul of the US’s strict anti-bribery laws. Kara Brockmeyer, chief of the FCPA unit at the SEC’s enforcement division, said Allianz’s Indonesian subsidiary “created an ‘off-the-books’ account that served as a slush fund for bribe payments to foreign officials”. The SEC said its investigation uncovered 295 insurance contracts on large government projects that involved improper payments of $650,000 by the subsidiary, Utama. The payments went to employees of state-owned entities and helped Allianz make more than $5.3m in profits, the SEC said. Allianz said it had neither admitted nor denied any wrongdoing but had consented to a so-called “cease and desist” order, a repayment of profits and a penalty. (Financial Times*)
Google close to deal with US regulators over patents dispute
Google is this week expected to escape the biggest anti-trust investigation for more than a decade by agreeing with US regulators to change the way it displays searches. It is also reported to be ready to sign an agreement with the US Federal Trade Commission (FTC) not to use its patents to stifle mobile competition. It is also due to meet with Europe’s anti-trust chief, as the European Commission considers similar action. The FTC has been investigating since June 2011 whether Google has abused its dominant position in search, by favouring its own products while disadvantaging rival companies or products. Any move that stops short of a full-blown case is likely to anger rivals, large and small, who have been pushing for the FTC to curtail what they see as the search giant's abuse of its monopoly in search. (Guardian)
Supply Chain
Europe calls for an end to wasteful products
In a new manifesto, the European Commission is calling for an end to resource-inefficient consumer goods across Europe to stimulate markets for products and services that have lower lifecycle impacts through greater durability, repairability and recyclability. One suggestion is to progressively take the worst performing products off the market and so expose the consumer to more sustainable choices. The EC also wants to encourage more sustainable sourcing of raw materials through the utilisation of waste products and adapting business models accordingly. "In a world with growing pressures on resources and the environment, the EU has no choice but to go for the transition to a resource-efficient and ultimately regenerative circular economy," the manifesto states. Targets, it adds, must "give a clear direction" and be implemented alongside indicators to measure progress relating to land use, material, water and greenhouse gas emissions, as well as biodiversity. The EC will issue a more detailed set of short term policy recommendations in June 2013. (Edie)
Environment
EPA tightens soot pollution standard
The US Environmental Protection Agency (EPA) has toughened its air quality standards for fine particulate matter, or soot, released from automobile exhausts and power plants. The agency set the annual health standard at 12 micrograms per cubic meter, a 20 percent reduction from the current rule. The existing daily limit of 35 micrograms for fine particles as well as course particles, which includes dust from farms and other sources, remain unchanged. The agency expects that by 2030, such standards will prevent 40,000 premature deaths, 32,000 hospital admissions and 4.7 million days of work lost due to illness. Industry groups, including the American Petroleum Institute and the National Association of Manufacturers, opposed the tougher standards and warned they could curb industrial activity. But health and environmental groups, such as Clean Air Watch, praised the regulations. (Environmental Leader, Business Green)
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