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| China Bars GlaxoSmithKline Executive From Leaving During a Bribery Inquiry | |
| (about 4 hours later) | |
| SHANGHAI — Chinese authorities have barred a British finance executive at the pharmaceutical giant GlaxoSmithKline from leaving the country while they carry out an investigation into bribery and corruption at the British company, the company confirmed on Wednesday. | SHANGHAI — Chinese authorities have barred a British finance executive at the pharmaceutical giant GlaxoSmithKline from leaving the country while they carry out an investigation into bribery and corruption at the British company, the company confirmed on Wednesday. |
| Steve Nechelput, the company’s vice president for finance in China, has not been detained or prevented from traveling or working in China, and there is no indication that he is the focus of the investigation. But a person involved in the case said he was being prevented from leaving the country and had sought the advice of British consular officials here. | Steve Nechelput, the company’s vice president for finance in China, has not been detained or prevented from traveling or working in China, and there is no indication that he is the focus of the investigation. But a person involved in the case said he was being prevented from leaving the country and had sought the advice of British consular officials here. |
| The effort to restrict Mr. Nechelput’s travel came as the government ramped up an unusually bold anti-corruption campaign against GlaxoSmithKline, which is one of the world’s biggest drug makers. | The effort to restrict Mr. Nechelput’s travel came as the government ramped up an unusually bold anti-corruption campaign against GlaxoSmithKline, which is one of the world’s biggest drug makers. |
| On Monday, the government accused four senior executives from the China operations of Glaxo, or GSK, as the company is also known, of using local travel agencies to bribe doctors, hospitals, medical associations and government officials in an effort to bolster drug sales and get regulatory approvals. | On Monday, the government accused four senior executives from the China operations of Glaxo, or GSK, as the company is also known, of using local travel agencies to bribe doctors, hospitals, medical associations and government officials in an effort to bolster drug sales and get regulatory approvals. |
| The government said that it had detained the four executives, all Chinese nationals, and that they had already confessed to engaging in a wide range of crimes, including bribery, embezzlement and tax fraud. | |
| On Tuesday, one of the detained executives, Liang Hong, appeared to confess to some of the fraud accusations during an interview on China Central Television, the nation’s biggest state-run broadcast network. | |
| Although the government has filed no charges against the company or the individuals, analysts said the government has been extraordinarily public about the case, offering details and strong denunciations of what occurred and going as far as saying the fraud allowed the drug maker to raise prices in China, defrauding consumers. | |
| The authorities, however, rarely detain high-ranking foreign executives on bribery and corruption charges. | The authorities, however, rarely detain high-ranking foreign executives on bribery and corruption charges. |
| Up to now, the government has not accused any of the company’s foreign executives of wrongdoing. Still, the head of Glaxo’s China operation, Mark Reilly, a British national, left the country shortly after the police raided its China offices in late June, according to the authorities. | Up to now, the government has not accused any of the company’s foreign executives of wrongdoing. Still, the head of Glaxo’s China operation, Mark Reilly, a British national, left the country shortly after the police raided its China offices in late June, according to the authorities. |
| During a news conference on Monday, Gao Feng, the head of the economic crimes unit at the Ministry of Public Security, harshly criticized the company and its executives, suggesting that Glaxo operated in China like a criminal organization. | |
| GlaxoSmithKline headquarters in London issued a statement confirming Mr. Nechelput’s travel restrictions, which the company had been aware of “since the end of June.” | |
| “It is important to stress that at no time has he been questioned or arrested — nor is he one of the individuals in detention,” the statement said. “He continues in his role as finance director for GSK China.” | |
| The company said earlier that it was willing to cooperate with the Chinese authorities and that it planned to strengthen its compliance efforts. | The company said earlier that it was willing to cooperate with the Chinese authorities and that it planned to strengthen its compliance efforts. |