According to the Chinese state news channel Xinhua a number of GlaxoSmithKline chief executives are facing a criminal investigation by Chinese police for bribery and tax evasion.
Written by Chris White
The accusations include that they offered bribes to Chinese officials and medical personnel in exchange for extra sales in China and undertook illicit practices in their marketing of botox in the country.
This morning a spokesman for GlaxoSmithKline in China said: “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. GSK has some of the toughest compliance procedures in the sector. We are proud of our high standards and operate in accordance with them.”
The announcement of a Chinese investigation into the company’s practices comes on foot of allegations made in the Wall Street Journal claiming documented proof that the GSK’s sales department in China were “apparently instructed by local managers to use their personal email addresses to discuss marketing strategies related to botox.”
The report in the Wall Street Journal alleged: “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.”
By this morning the Chinese Ministry of Public Security acknowledged that Chinese police had already officially questioned some of the suspects and had subsequently obtained evidence regarding alleged offences.
The investigation comes as a group GSK executives are already being investigated in Changsha, Hunan Province for “economic crimes”, as a separate incident.
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