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News2014July › GSK faces more bribery charges in China › July 2014

GSK faces more bribery charges in China

UK drug giant GlaxoSmithKline (GSK)-already embroiled in a bribery scandal in China-could face expulsion from the world's fastest-growing economy after a second scandal came to light last week

UK drug giant GlaxoSmithKline (GSK)-already embroiled in a bribery scandal in China-could face expulsion from the world's fastest-growing economy after a second scandal came to light last week.
The second case of fraud concerns activities from a decade ago when GSK employees allegedly bribed Chinese officials over the use of its vaccines.
The latest revelation follows the recent scandal over allegations by a whistle-blower that GSK employees paid $500m in bribes to doctors and health officials in order to boost sales of its pharmaceuticals and charge the Chinese government a higher price for them.
Even before the present scandal broke, the Chinese government was already making noises that fraud would not be tolerated. In a statement issued through its news agency, Xinhua, it said that "GSK's practices eroded its corporate integrity and could cause irreparable damage to the company in China and elsewhere. The case is a warning to other multinationals in China that ethics matter."
(Source: Financial Times, July 17, 2014)


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