Wal-Mart CEO in China Resigns Amid Mislabeled Pork Allegations

Posted October 17th, 2011 at 12:10 am (UTC-5)
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Retail giant Wal-Mart says its chief officer and another top executive in China have stepped down amid accusations that the company sold mislabeled pork.

Chinese authorities last week ordered Wal-Mart to close more than a dozen stores in the city of Chongqing following charges that the stores had sold ordinary pork as organic for the past two years.

In a brief statement Monday, the company said chief executive Ed Chan has resigned for personal reasons. It said senior vice president Clara Wong is also stepping down.

The official Xinhua news agency said last week that the stores had sold more than 63,000 kilograms of mislabeled pork. Chinese media said the company has been fined more than $400,000 and some of its employees have been detained.

Local officials told Xinhua they have punished Wal-Mart 21 times since the company entered Chongqing in 2006. They said the company has been sanctioned for exaggerated advertising and for selling expired and substandard food