Matthew Barakat, The Associated PressALEXANDRIA, Va. -- Walmart agreed Thursday to pay a $138 million criminal penalty to settle Justice Department allegations that its Brazilian subsidiary secretly funneled more than $500,000 to an intermediary known as a "sorceress" for her uncanny ability to make permit problems disappear.
Walmart did not immediately respond to a call and emails seeking comment. A representative of Walmart Brazil said the company would not comment. The court documents say the corruption occurred in 2009 and 2010, and that the subsidiary's corrupt acts caused the parent company to submit inaccurate financial records. In particular, the payments to the intermediary were recorded as payments to a construction company, even though there were numerous "red flags" to indicate that the intermediary was actually a government official. Walmart Brazil was barred at the time from hiring civil servants.
The plea agreement also includes a provision barring the Brazilian subsidiary from making public claims or issuing press releases contradicting the facts outlined under the plea agreement.