Wal-Mart’s China employees were detained in a probe on alleged fraud.
Offices in China have closed 13 Walmart Stores and detained on undisclosed number of employees pending an investigation on their practices of selling pork.
Walmart is accused of selling ordinary pork as expensive organic pork, which would be consumer fraud, according the the Chinese Officials. With China experiencing runaway inflation, every aspect of the economy in under a microscope. Pork is a staple in the Chinese diet and within the last year the price has jumped 52%. To make matters worse for Walmart, 2012 is an election year for the Chinese and local officials are flexing their political muscle trying to sway public opinion.
It needs to be noted that Walmart acknowledged that they had found a labeling problem in the pork last month and offered compensation to customers who believed they had been wronged.
This is just another setback in a 15 year push by the superstore giant to create an empire in China. Currently Walmart operates over 350 stores in 121 cities with in China.