Wal-Mart defends its monitoring

Wal-Mart Stores Inc.’s normally low-profile security efforts were thrust into the limelight Wednesday when a fired technician alleged he had been part of a large surveillance operation that spied on company workers, critics, vendors and consultants. The company defended its security practices.

The world’s largest retailer declined to comment on specific allegations made by 19-year veteran Bruce Gabbard to the Wall Street Journal in a report published Wednesday. Wal-Mart reiterated that it had fired Gabbard, 44, and his supervisor last month for violating company policy by recording phone calls and intercepting pager messages.

“Like most major corporations, it is our corporate responsibility to have systems in place, including software systems, to monitor threats to our network, intellectual property and our people,” Wal-Mart spokeswoman Sarah Clark said.

Gabbard was fired after recording phone calls to and from a New York Times reporter and intercepting pager messages.

Wal-Mart made the case public last month and denied Gabbard’s claims that his actions were the result of pressure from Kenneth Senser, a former senior CIA and FBI official who has headed Wal-Mart’s office of global security since 2003.

Another FBI veteran, Joseph Lewis, is head of corporate investigations under Senser.

Gabbard did not work for Senser’s department, although the company and others familiar with the case said Senser had the authority to work with staff from other divisions in carrying out investigations. Gabbard has said he felt pressured by Senser to find information leaks, while Wal-Mart has denied that those conversations alleged by Gabbard took place.

Gabbard and his former supervisor, Jason Hamilton, who also was fired, have declined repeated requests from the Associated Press to talk about their security activities.

But in a text message to the Associated Press on Wednesday, Gabbard confirmed the allegations that he was part of a broader surveillance operation approved by the company. The team, the Threat Research and Analysis Group, was a unit of Wal-Mart’s Information Systems Division.

“I can confirm everything in the WSJ story is correct except the glass-wall comment which I didn’t make,” Gabbard wrote, referring to a description of the Threat Group’s glass-enclosed work area at Wal-Mart’s Bentonville, Ark., headquarters, which the Journal said employees had nicknamed “The Bat Cave.”

Wal-Mart’s Clark said the company had reported the issue to federal prosecutors to determine whether any laws had been broken.

Wal-Mart’s union-backed critics, whom Gabbard identified as among the surveillance targets, accused the retailer of being “paranoid, childish and desperate.”

“They should stop playing with spy toys and take the criticism of their business model seriously. The success of the company depends on it,” said Nu Wexler, spokesman for Wal-Mart Watch.

According to the Wall Street Journal report, the company found personal photos of Wexler and tracked his plans to attend Wal-Mart’s annual meeting.