Sunday, Dec 21, 2014, 4:47 AM CST – China

News Brief

Business

GSK in Bribery Scandal

London-based GlaxoSmithKline (GSK), the world’s third largest pharmaceutical company, has come under investigation in China for its alleged involvement in massive bribery.

According to China’s Ministry of Public Security, since 2007 GSK has paid direct or indirect bribes amounting to three billion yuan (US$480m) to government officials, hospitals, medical committees and various other organizations, allegedly using false invoices from travel agencies in many cases.

Four senior GSK executives, all of them Chinese nationals, have been detained. According to police, at least one is suspected of “sexual bribery.” Steve Nechelput, a British GSK finance executive based in Shanghai, has been placed under a travel ban that prevents him from leaving the mainland.

In response, GSK has stated that it will not tolerate bribery, and that it fully supports China’s anti-corruption efforts.

Media speculation is rife that more companies may come under suspicion following the case.

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