By Sam Forgione
April 23 (Reuters) – The California State Teachers’
Retirement System (CalSTRS), which currently holds over 5.5
million shares of Wal-Mart Stores, will maintain its
exposure to the retail giant hit by bribery allegations “until
we find out what happens,” CalSTRS’ director of corporate
governance said on Monday.
Anne Sheehan said in a telephone interview: “Allegations
like this are very serious and we expect the company with the
board involved and proper board oversight to get to the bottom
of these allegations as quickly as possible.”
The New York Times reported over the weekend that Wal-Mart
de Mexico, which is 69 percent owned by Wal-Mart
Stores Inc, had orchestrated a widespread bribery
campaign to win market dominance. The investigative article
alleged that senior Wal-Mart executives knew about the matter
and tried to cover it up.
Wal-Mart said in a statement on Saturday it was “deeply
concerned” about the allegations in the Times report and began
an investigation into its compliance with the U.S. Foreign
Corrupt Practices Act (FCPA) last fall. The company also said it
had disclosed the probe to the U.S. Department of Justice and
the Securities and Exchange Commission.
Sheehan said: “Allegations of FCPA violations are very
serious to any shareholders and we want the company to resolve
this…ASAP.”
As of March 31, CalSTRS’s investment portfolio stood at
$152.9 billion in assets.
The California Public Employees’ Retirement System
(CalPERS), the nation’s largest public pension fund, had no
comment on the 7.75 million shares it held in Wal-Mart as of the
end of March.
CalPERS oversees $231.9 billion in total assets, as of Jan.
31.
Wal-Mart shares closed down 4.7 percent on the New York
Stock Exchange at $59.54.
