US retail giant Walmart has suspended some senior staff in India including its chief financial officer and some legal team members as part of its bribery probe.

“We are committed to conducting a complete and thorough investigation. Walmart and Bharti have suspended a few associates pending the outcome of the investigation. It would be inappropriate for us to comment further until we have finished the investigation,” said a spokesperson at Bharti Walmart, a 50-50 joint venture between US-based Walmart and Indian company Bharti Enterprises.

Bharti Walmart operates 20 ‘Best Price’ wholesale stores in India and has plans to expand in the coming months, however, those plans were put on hold while the company under probe. The company said it remains excited about the opportunity to grow business in one of the world’s most vibrant economies despite troubles.

Walmart also plans to open directly operated stores in India within 18 months after the government cleared the way for majority foreign ownership of multi-brand retail stores. It is unclear if bribery probe will affect those plans.

The US retail giant expanded earlier this month its investigations regarding allegations of potential bribery to Brazil, China and India to strengthen its compliance with the Foreign Corrupt Practices Act (FCPA).

Walmart is also facing a separate probe from Indian authorities regarding the alleged US$100 million secret investment in Bharti Retail (a holding company of Bharti Enterprises) which would be converted into a controlling stake. Both companies deny violating any laws.

Anand Dayal, chairman of the anti-corruption committee of the American Chamber of Commerce in India, said the suspension of the Walmart’s staff in India was an effective step in executing bribery probe.

“It’s fairly standard to make sure that you try to get anyone involved in potential wrongdoing out of the picture so it doesn’t hamper the investigation,” said Dayal.

GB