Page 64 - IACC Newsletter January 2013 Issue no. 8 HD

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Wal-Mart denies doing anything wrong and maintains that low prices are the result of efficiency. In November, in
another setback, the multinational retailer revealed it had ordered an internal probe into potential violations of anti-
corruption law in Brazil, China and India.
"We will take appropriate action on the conclusion of this investigation, but rest assured we are not waiting for the
outcome. We are using every opportunity to improve. This will make Wal-Mart an even better company. We look at
markets around the world and have included a new office of compliance. This focus will make us a better company," Mr.
Duke said.
So why did Wal-Mart volunteer to probe corruption charges in countries like India and China? Most large US
corporations have established internal procedures for investigating corruption. Given the strict US laws, and the
potential reputational damage, US companies often alert the government when they find evidence of violations of the
Foreign Corrupt Practices Act or FPCA, investigate these violations and settle with the government.
Sometimes, looking at the large scale of expansion and potential for growth in emerging markets, it may make sense to
large corporations to pay whatever fines and legal costs may be imposed while continuing to pay bribes in countries
where corruption is rampant as it may be the only way to get anything done.
Roland Riopelle, co-founder of law firm Sercarz & Riopelle, LLP, described as "very significant" Wal-Mart's decision to
make public its corruption probe in India.
"To perform an investigation is enormously expensive. If they are announcing the investigation before they know the
results, it is a clear indication they are expecting to find some sort of wrongdoing in India," Mr Riopelle said.
At a protest outside the venue where the Wal-Mart chief was speaking, the atmosphere was all charged up. One
protester said he was not surprised at all by the charges of corruption against the retail giant in countries like India and
"Wal-Mart always puts profit over everything else. Recently we had a fire in a Bangladesh factory. Wal-Mart did not
support improving security for workers because it would mean more costs for them. So I am not surprised they would be
bribing to see growth in developing countries," the protester said.
Asked what message the protesters were trying to send out, he said: "Mike Duke has the audacity to come to New York
and speak on women's economic empowerment while his corporation in countries across the world pays minimal wages
to workers, a majority of whom are workers. So it's really audacious of him to come here and speak."
Generic drug product application to cost Rs 30 lakh in US
The companies would also have to pay about Rs 12 lakh for filing of Drug Master File (DMF) with the FDA
Indian generic drug exporters to US will have to pay about Rs 30 lakh (about $54,700) each as fee for every new product
application they file with the US health regulator as per an amended law in that country, Parliament was informed
This is as per the Generic Drug User Fee Amendments of 2012 (GDUFA) of the US government, Minister of State for
Commerce and Industry D. Purandeswari said in a written reply.
She said any company interested in supplying generic drugs with effect from October 1, 2012 have to pay the prescribed
fee to the US Food and Drug Administration (FDA) for registering their products in the US.
"There will be financial impact on generic drug exports to USA as the exporters are now required to pay about Rs 30 lakh
for registration of each abbreviated new drug application (ANDA)," Purandeswari said.
The companies would also have to pay about Rs 12 lakh for filing of Drug Master File (DMF) with the FDA, she added.