[ 2013-07-11 ]

Glaxo employees ‘admit bribing Chinese doctors’
GlaxoSmithKline employees have admitted to charges
of bribing doctors and violating tax law in three
of China’s biggest cities, the government said
today.

The Ministry of Public Security said that an
investigation announced earlier this week into
alleged wrong-doing by the British pharmaceuticals
company in Changsha, a provincial capital in
central China, was being widened to include
Shanghai and Zhengzhou.

Glaxo employees are also suspected of using fake
receipts to breach tax codes.

“After initial questioning the suspects have
admitted to the crimes, and the investigation is
ongoing,” the ministry said in a statement.

The statement did not give details on the number
of Glaxo executives questioned, their identities
or when the questioning took place.

The company said it would cooperate with the
authorities. “We take all allegations of bribery
and corruption seriously. We continuously monitor
our businesses to ensure they meet our strict
compliance procedures - we have done this in China
and found no evidence of bribery or corruption of
doctors or government officials.”

In recent months China has targeted foreign firms
on multiple fronts including alleged price-fixing,
quality controls and consumer rights.

Glaxo, the UK’s largest drugs maker, said on
Monday it was investigating new allegations that
its staff had used improper tactics to market
Botox in China, but had so far found no evidence
of bribery or corruption.

Glaxo, Merck and other foreign and domestic
drugmakers were also being investigated by
China’s top economic planning agency on cost and
pricing issues.

China accounts for less than 3 per cent of
Glaxo’s global sales, but is seen as an
important source of future growth.

GSK declined to comment.

Source - The Times(UK)

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