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GlaxoSmithKline executives face China bribery probe GlaxoSmithKline executives face China bribery probe
(about 4 hours later)
Some senior executives of the Chinese division of GlaxoSmithKline (GSK) are facing a criminal investigation. Some senior executives of the Chinese division of GlaxoSmithKline (GSK) are facing a criminal investigation, the Chinese authorities have said.
They are being investigated for bribery and tax related violations, the state owned Xinhua news agency reported. They are being investigated for bribery and tax-related violations, said the Chinese Ministry of Public Security.
They are suspected of offering bribes to officials and doctors in an attempt to boost sales in the country.They are suspected of offering bribes to officials and doctors in an attempt to boost sales in the country.
On Monday, GSK said it was looking into claims that its staff used improper tactics to market Botox, but added that it had found no evidence so far. GSK said in response to the allegations that it had found no evidence of bribery or corruption in China.
"We are investigating these new claims. However, our inquiries to date have found no evidence of bribery or corruption in relation to our sales and marketing of therapeutic Botox in China," a GSK spokesman had said. "We are willing to co-operate with the authorities in this inquiry," the company said in a statement, adding that it had only just received official word of the "specific nature" of the investigation.
"GSK has some of the toughest compliance procedures in the sector. We are proud of our high standards and operate in accordance with them," he added. "We take all allegations of bribery and corruption seriously," the statement said.
The allegations were first reported by the Wall Street Journal, which claimed that it had reviewed internal company documents which showed that sales staff were "apparently instructed by local managers to use their personal email addresses to discuss marketing strategies related to Botox". "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. However, if evidence of such activity is provided, we will act swiftly on it."
"In the personal emails, sales staff discuss rewarding doctors for prescribing Botox with cash payments, credits that could be used to meet medical-education requirements and other rewards," the paper said in its report. The Chinese Ministry of Public Security said in a statement that police had questioned some of the suspects.
On Thursday, the Xinhua news agency reported that a statement from the Ministry of Public Security revealed that police had questioned some of the suspects. It accused the firm of bribing government officials and doctors, as well as overstating tax receipts.
It added that the police had obtained evidence regarding the suspected offences. "The case involves many people, the duration of time is long, the amount of money involved is huge and the criminal activities are malicious," the ministry said.
Senior executives at GSK are already being investigated by Changsha public security officials for "economic crimes", the city's police force said last month. However, it is not clear if the Changsha investigation is related to any of the latest allegations.Senior executives at GSK are already being investigated by Changsha public security officials for "economic crimes", the city's police force said last month. However, it is not clear if the Changsha investigation is related to any of the latest allegations.