The second-largest US public pension fund has said allegations of bribery in Mexico and a cover-up by top management at Wal-Mart Stores raise the question of whether top leadership should remain in place at the company.

But officials with the California State Teachers’ Retirement System, which sued current and former Wal-Mart executives on Thursday, stopped short of calling for Wal-Mart chief executive Mike Duke to step down.

“The leadership question is on the table,” Jack Ehnes, chief executive of the pension fund, said when asked yesterday whether Mr Duke, a defendant in the lawsuit, should step down.

Mr Ehnes, however, said the purpose of the lawsuit was to determine whether the alleged actions occurred and declined to say specifically whether Mr Duke should leave his post.

Mr Ehnes’ fund holds more than 5.3 million Wal-Mart shares.

A Wal-Mart spokesman declined to comment on Mr Ehnes’ statement about Wal-Mart’s leadership. – (Reuters)