(AP) – New York City’s multibillion-dollar public pension fund demanded Tuesday that Wal-Mart turn over records dating back to 2002 to show whether it spied on shareholders who wanted annual meetings to adopt policies opposed by management.

Wal-Mart has denied allegations by a fired former security operative that it snooped on investors. But New York City Comptroller William Thompson said he has “a credible basis” to believe Wal-Mart Stores Inc. conducted surveillance, investigations or “threat assessments” of shareholders.

The head of Illinois’ state employee pension fund, which also holds millions of dollars of Wal-Mart shares, applauded Mr. Thompson’s demand and said an external review of the spying allegations is needed.

Mr. Thompson, who runs New York public pension funds with more than $360 million in Wal-Mart shares, said in a statement he had sent Wal-Mart a letter demanding the release of corporate documents and records related to any investigation of shareholders.

“Any such attempts by Wal-Mart or its management to discourage shareholders free and uncoerced exercise of their voting franchise would constitute mismanagement, waste and/or illegality,” Mr. Thompson wrote.

Wal-Mart spokesman John Simley said the company received the comptroller’s letter on Friday.

“We are studying the letter and will respond appropriately,” Mr. Simley said.

William Atwood, executive director of the Illinois State Board of Investment, said Wal-Mart’s denials that it snooped on shareholders are not enough to lay the issue to rest.

“This isn’t going away,” Mr. Atwood told The Associated Press in a telephone interview.

“I think the comptroller is on the right track. Let’s open up the files and let an external set of eyes look at it,” Mr. Atwood said.

The Illinois state fund has total assets of $12.6 billion. Thompson oversees five pension funds for New York City worth a total of about $105 billion.

In his letter, Mr. Thompson cited a January 2007 internal Wal-Mart memo released in April. In that memo, a senior aide to the board of directors sent Wal-Mart’s security department a list of shareholder proposals submitted for the annual meeting, many of which were opposed by management.

“Typically, we send this list (of shareholder proposals) so that someone from ARC and other areas can do some preliminary background work on the potential threat assessment for the Annual Shareholder’s Meeting,” the memo said. ARC stands for Analytical Research Center, a unit set up in 2005 within Wal-Mart’s global security department by a former military intelligence officer. Its purpose is to collect and analyze data on threats and security issues.

The memo said some activist shareholders whose proposals were rejected or blocked by management could have a “negative reaction”. It did not spell out what threat such a group might pose.

Wal-Mart Chief Executive Lee Scott wrote to shareholders in April to deny the company collected information “improperly or through intrusive means” about shareholders. The company also said the January memo was never acted upon.

Despite Wal-Mart’s denial, Thompson in April asked the U.S. Securities and Exchange Commission and the U.S. Justice Department to investigate whether Wal-Mart illegally spied on some of its shareholders.

Tuesday, Mr. Thompson said the SEC had referred the matter to its regional office to determine whether an investigation is in order.