NEW DELHI: The Walmart lobbying issue rocked Parliament for days prompting government to declare that it had no hesitation in ordering a probe into reports that the retail giant had spent money to further its case in India. “We have no hesitation in having an inquiry to get to the facts of the matter,” Parliamentary Affairs Minister Kamal Nath said in the Lok Sabha seeking to douse the Opposition ire on the issue.
The government “views the reports (on Walmart) with the utmost concern,” Nath said.
His statement came close on the heels of senior BJP leader Yashwant Sinha demanding a time-bound judicial inquiry into the reports that Walmart engaged lobbying firms to get entry into India and “spent money here”.
Later, Trinamool Congress, AIADMK, JD(U), RJD also demanded Joint Parliamentary Committee to probe into Walmart issue.
The inquiry should be completed within 60 days and people should know who has been bribed and how much has he got, Sinha said amid cries of ‘shame, shame’ from the Opposition benches.
Noting that there have been “gross financial irregularities” in Walmart leading to suspension of its Chief Financial Officer in India and seven other officers and a probe is on against them in the US, Sinha said “this has sullied the dignity of our country.”
“These disclosures have made it clear that they have given money to people here to gain entry in India. An inquiry is going on in the US on this issue. But there is no inquiry in India. People have taken money and are sitting tight,” the BJP leader said.
Trouble broke out when Speaker Meira Kumar asked members to associate themselves with Sinha and called Kamal Nath to respond. This led to Left and Trinamool Congress members, who had submitted adjournment notices on the issue, to storm the Well demanding that they too be allowed to speak.
The issue created uproar in the Rajya Sabha too which saw two adjournments with BJP members, supported by members of the Left parties and Trinamool Congress, raising the issue.
UPA chairperson Sonia Gandhi was seen nudging Leader of the Lok Sabha Sushil Kumar Shinde to make an announcement that Kamal Nath would be making a statement on the Walmart issue.
Nath said, “We have learnt from press reports of the reported disclosure by Walmart under US laws on amounts spent by them on lobbying in various countries, including India.
“The government views this with utmost concern and has no hesitation in ordering an enquiry on this in as much as it concerns payments made in India,” the Minister said.
Making an almost identical statement in the Rajya Sabha, Nath said, “Government is not running away on this concern. We are open for a discussion. This is not a matter of concern for the Opposition, it is also a matter of concern for the government. It is for all of us. We are open for a probe.”
The matter was raised in the Upper House by BJP member M Venkaiah Naidu who demanded an independent probe into the issue and the matter be discussed in the House.
“It is a question of our nation’s sovereignty. It is a shameful act. We have to have a detailed discussion,” Naidu said, adding the matter was even more serious if the money was spent in the US for lobbying in India.
Demanding a probe, senior CPI (M) leader Sitaram Yechury said this was “a serious matter. This is something unacceptable” and announced that he would move a notice for a short-duration discussion on the issue.
As the din continued, Ansari adjourned the House for 30 minutes and again adjourned it till noon as similar scenes continued.
Earlier in the Lok Sabha, as soon as Speaker Meira Kumar took up the Question Hour, members of Left parties and Trinamool Congress trooped into the Well raising slogans.
They demanded inquiry into reports of lobbying by Walmart, while BSP members sought a status report on a probe in the coal block allocation in Uttar Pradesh.
At another point, when the BSP members again stormed the Well, BJP members were heard remarking that they were helping the government after bailing it out on the FDI issue.
The uproar continued even as Kumar made repeated appeals for allowing the Question Hour to continue. The Speaker then adjourned the House.
With proceedings in Parliament being disrupted, Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi discussed ways to resolve the logjam over Walmart lobbying and quota in promotions issues.
Soon after Rajya Sabha and Lok Sabha were adjourned, senior UPA leaders, who are members of the Congress Core Group, gathered at the Prime Minister’s Office in Parliament House and were briefed by Parliamentary Affairs Minister Kamal Nath.
Apart from the Prime Minister, Gandhi and Nath, union ministers P Chidambaram and Sushilkumar Shinde attended the meeting among
No violation of American laws
WASHINGTON: Amid controversy over reports that Walmart spent nearly Rs 125 crore for lobbying with lawmakers to get access to Indian market, the US has said the global retail giant did not violate any American law as far as the matter is concerned.
“On the US side, I don’t have any reason to believe that we have a violation of US law here. With regard to the Indian side, I’ll refer you to them,” State Department spokesperson Victoria Nuland said here, categorically dismissing allegations by Indian opposition parties in this regard.
Nuland was responding to questions on charges by opposition parties in India that Walmart spent huge sums in four years in lobbying before the US Congress, including on those related to enhanced market access for investment in India.
“We’ve seen these press reports. With regard to lobbying in the US, I think you know that the Lobby Disclosure Act of 1995 and the Honest Leadership and Open Government Act of 2007 requires lobbyists for any company or organization to disclose its activities in a periodic report to Congress,” she said.
“So the report which some of these allegations have cited is a regularly required report for the US Government as part of our open government transparency in governance requirements,” Nuland said.
Meanwhile, Walmart has also denied of being involved in any wrongdoing.
“These allegations are entirely false. In accordance with US law, American companies are required to disclose issues and expenditures associated with lobbying on a quarterly basis.
The expenditures are a compilation of expenses associated with US federal lobbying contacts and include staffing cost, association dues and payments made to consultants, all in the US,” a company spokesperson said in a statement.
The spokesperson said the company had “held discussions” with US officials about a range of “trade and investment issues” that impact its businesses in the US and worldwide, and disclosed this in accordance with the law.
Bharti Walmart denial
Bharti Walmart Private Limited, which is a joint venture between Bharti Enterprises and Walmart, has also denied the allegations.
“These allegations are entirely false. In accordance with US law, US companies are required to disclose the issues and expenditures associated with lobbying on a quarterly basis,” a Bharti Walmart spokesperson said in a statement.
The expenditures are a compilation of expenses associated with staff, association dues, consultants and contributions spent in the US, it added.
“Our Washington office naturally had discussions with US government officials about a range of trade and investment issues that impact our businesses in the US and worldwide and disclosed this in accordance with the law,” the official said.
Rs 125-cr lobby bill
According to the lobbying disclosure reports filed by Walmart with the US Senate, the company has spent close to USD 25 million (about Rs 125 crore) since 2008 on its various lobbying activities, including on the issues related to “enhanced market access for investment in India”.
In the last quarter ended September 30, 2012 itself, the company spent USD 1.65 million (about Rs 10 crore) on various lobbying issues, which included “discussions related to FDI in India”.
During the quarter, Walmart lobbied for its case with the US Senate, the US House of Representatives, the US Trade Representative (USTR) and the US Department of State, as per its latest quarterly disclosure report.
As per Walmart’s reports, the company has continuously lobbied for its India entry since 2008, except for a few quarters in 2009.
Indian government recently opened up its multi-brand retail sector for foreign companies after years of political opposition and a Parliament motion against this decision was defeated recently in both Lok Sabha and Rajya Sabha.
The US-based supermarket chain operator Walmart Stores, which has an annual turnover of USD 444 billion and a world- wide headcount of 2.2 million, has been eyeing for a long time to enter India.
The Indian retail market is estimated to be worth about USD 500 billion currently and is pegged to cross USD one trillion mark by 2020, given the rising personal income and growing consumer spending trends.
According to a report by global consultancy major A T Kearney, the organized retail is expected to reach 25 per cent of the overall market by 2020.
The report also said that India remains one of the most favorable destinations for international retailers and an accelerated retail growth of 15-20 per cent is expected over the next five years.-PTI
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