China Accuses GlaxoSmithKline Of Enormous And Elaborate Bribery Network
British pharmaceutical giant GlaxoSmithKline has been accused by Chinese police of a massive bribery network run covertly with travel agencies, the New York Times reports.
The agencies were used to funnel millions of dollars to doctors, hospitals, and officials, authorities told a press conference today. The aim of these payoffs was to keep sales of GSK products high and allow the firm to raise prices in China. According to the Reuters, the value of the bribes was said to be over $450 million since 2007.
The company is even accused of organizing fake conferences to account for the money. Travel agents keen to work with GSK are also alleged to have hired young women for GSK executives in what authorities called "sexual bribery."
The investigation against GSK was announced last week, and Chinese state news agency Xinhua reports that four senior executives at GSK are being held for "serious economic crimes." According to the New York Times, Mark Reilly, the head of GSK’s operations in China, recently left the country. His departure coincided with a number of raids of the company's offices.
Read more: http://www.businessinsider.com/chinese-accuse-glaxosmithkline-of-bribery-network-2013-7
GSK -- probably the sleaziest of the major pharma companies.
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