Subscribe free to our newsletters via your




INTERN DAILY
Drugmaker GSK says fined $490 mn in China graft probe
by Staff Writers
Beijing (AFP) Sept 19, 2014


A Chinese court on Friday fined British drugmaker GlaxoSmithKline 3.0 billion yuan ($490 million) following a nearly year-long bribery probe, the company said.

The firm's former head of China operations, Mark Reilly who would be deported, and four other ex-officials were given suspended sentences of between two and four years in prison, the official Xinhua news agency said.

The fine levied by the Changsha Intermediate People's Court after a closed hearing in central Hunan province was the largest ever handed down by a Chinese court, according to Xinhua.

It equals the precise amount that China's ministry of public security said last year had been funnelled between GSK and travel agencies since 2007.

Police allege that GSK took kickbacks from travel agencies to organise conferences that never took place.

The company also "resorted to bribery to boost sales of its medical products and sought benefits in an unfair manner," the court said in a statement, according to Xinhua.

"GSK bribed, in various forms, people working in medical institutions across the country, and the amount of money involved was huge. Five senior executives actively organized, pushed forward and implemented sales with bribery," the court statement added.

The firm said in a statement that the court had found it guilty of "bribing non-government personnel".

- 'Clear breach' of governance -

In an apology posted on its website, GSK said that the illegal activities of the firm's China arm "are a clear breach of GSK plc's governance and compliance procedures; and are wholly contrary to the values and standards we expect from our employees".

The firm "must work hard to regain the trust of the Chinese people", it added.

According to Xinhua, Reilly was given three years in prison but will receive a four-year reprieve and be "expelled" from China. It did not provide further details.

Three other GSK officials -- former human resources director Zhang Guowei, former vice president Liang Hong and former legal affairs director Zhao Hongyan -- received sentences and reprieves of two to three years, Xinhua said.

The firm's former general manager for business development, Huang Hong, was found guilty of "bribing and receiving bribes" and received a sentence of three years, which will be suspended for four years, according to Xinhua.

The court decided to reduce the jail sentences for the five "since they confessed the facts truthfully and were considered to have given themselves up," Xinhua reported.

After being detained by Chinese authorities last year, Huang was quoted in state media as saying that GSK had set up a special team to handle important clients which had an annual "relations" budget of nearly 10 million yuan ($1.6 million).

Sales growth targets set by the firm as high as 25 percent put pressure on employees, Xinhua quoted Huang as saying.

Neither the statement nor the apology mentioned the sentencing of Reilly or other officials.

The verdict comes more than a year after Chinese police first accused Reilly of ordering employees to bribe hospitals, doctors and health institutions to gain billions of dollars in revenue.

China's healthcare sector is widely considered to be riddled with graft, partly the result of an opaque tendering system for drugs, and also due to doctors' low salaries.

GSK is the most high-profile target of wide-ranging Chinese inquiries into foreign pharmaceutical firms, as Beijing also mounts probes into overseas companies in sectors ranging from cars to baby milk.

The investigations come against the backdrop of an anti-graft campaign backed by President Xi Jinping to root out official corruption.

Reilly is not the only non-Chinese national to have been ensnared in the probe.

Last month, a Shanghai court sentenced British investigator Peter Humphrey and his American wife Yu Yingzeng to two-and-a-half years in jail for breaching privacy laws.

The investigators had been hired by GSK to investigate the source of a lurid sex tape of Reilly shortly before the probe went public.

.


Related Links
Hospital and Medical News at InternDaily.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








INTERN DAILY
Asia's rising tobacco epidemic
Seoul (AFP) Sept 18, 2014
Smoke-filled bars and packed cancer wards reflect decades of neglect of no-smoking policies in Asia, where both high- and low-income countries are belatedly waking up to a growing tobacco-related health epidemic. Researchers say inadequate public awareness of smoking risks, coupled with aggressive tobacco marketing, has left Asian nations with some of the highest smoking rates in the world a ... read more


INTERN DAILY
Expats defend paradise in hurricane-hit Mexico

Tornadoes occurring earlier in "Tornado Alley"

Far more displaced by disasters than conflict: study

Kashmir militants suspend jihad to help flood efforts

INTERN DAILY
Sam Houston State study examines use of GIS in policing

Western Sanctions Fail to Impede GLONASS Satellite Production

GPS Industries Bolsters Golf Course Digital Content Program

Thales to improve GPS satellite navigation system

INTERN DAILY
Modern Europeans descended from three groups of ancestors

Computerized emotion detector

Human faces are so variable because we evolved to look unique

World population may hit 11 billion by 2100: study

INTERN DAILY
Dwindling wind may tip predator-prey balance

'Miracle' panda triplets open their eyes in Chinese zoo

22 elephants poached in Mozambique in two weeks

New branch added to European family tree

INTERN DAILY
Liberia's women, children bear brunt of Ebola epidemic

Sierra Leone's three-day Ebola shutdown ends

Coercion could worsen Ebola epidemic, say experts

Obama sends 3,000 troops to W.Africa to 'turn tide' on Ebola

INTERN DAILY
Tibetan man self-immolates in China: reports

Daughters of Chinese activists demand meeting with Obama

China's Xi starts South Asia tour in "paradise"

14 Nobel Laureates urge Zuma to give Dalai Lama visa

INTERN DAILY
Hijacked Singaporean ship released near Nigeria: Seoul

Chinese fish farmer freed after Malaysia kidnapping

US begins 'unprecedented' auction of Silk Road bitcoins

INTERN DAILY
China manufacturing gauge picks up in September: HSBC

Jack Ma of Alibaba becomes China's richest person

Japan cuts view of the economy as PM promises reform

OECD backs Japan tax hike, more easy money




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.