Wal-Mart Mexico hit by new allegations

MEXICO CITY (AP) -- Stock in retail giant Wal-Mart's Mexico subsidiary has dropped following allegations about money laundering and tax evasion.

Walmex V-series shares were down 5.87 percent in intraday trading Wednesday, following the release of a letter by U.S. congressmen describing the new allegations.

The company said in a statement Wednesday that "it has no knowledge that (it) is being investigated by Mexican authorities concerning these issues."

Rep. Henry Waxman wrote in a letter Tuesday to Wal-Mart CEO Michael Duke that internal company documents suggest the company "may have had compliance issues relating not only to bribery, but also to `questionable financial behavior' including tax evasion and money laundering in Mexico."

Press reports in April suggested that Wal-Mart de Mexico may have been paying middlemen in Mexico to facilitate store permits with bribes.

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