Wal-Mart Surveillance Documents Sought by New York Comptroller

New York City Comptroller William Thompson asked Wal-Mart Stores Inc. to turn over documents related to claims the company conducted surveillance of investors who question its business practices.

In a letter dated June 21, Thompson, who said he oversees city pension funds that hold 7.6 million Wal-Mart shares, asked the company to turn over evidence relating to any investigation it undertook of backers of shareholder proposals submitted since 2002. The letter was reported today by the Wall Street Journal.

``The funds have a credible basis to believe that certain employees, directors or agents of Wal-Mart have improperly expended corporate assets in connection with conducting surveillance, investigations or `threat assessments' of proponents of shareholder proposals, including the funds and the comptroller,'' Thompson wrote in a letter to Wal-Mart Executive Vice President and Secretary Thomas Hyde.

The letter was posted on the comptroller office's Web site.

Fired Wal-Mart security technician Bruce Gabbard claimed in a Journal article published April 4 that the company monitored employees, critics, stockholders and the consulting firm of McKinsey & Co. Several days later, Thompson asked U.S. officials to investigate and urged Wal-Mart Chief Executive Officer Lee Scott to publicly disclose the alleged surveillance activities and put a stop to them.

Wal-Mart spokesman John Simley didn't immediately return a phone message seeking comment on the document request. The Bentonville, Arkansas-based company, which is the world's largest retailer, has denied that it conducted any improper surveillance of shareholders.

source:bloomberg.com