Top GSK official told to help with the probe
Source: Agencies |
July 22, 2013, Monday
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Print Edition
Print Edition
A SENIOR official from the Ministry of Public Security has met with a representative from the head office of pharmaceutical giant GlaxoSmithKline, urging the UK company to cooperate with the Chinese police in investigations.
When meeting with Abbas Hussain, president of Europe, Emerging Markets and Asia Pacific of the GSK, the unidentified ministry official said some senior executives of GSK China colluded with affiliated companies to offer large bribes to push up drug prices, expand sales and seek illegal profits, according to a ministry statement.
GSK's suspected crimes have not only violated Chinese laws, but also seriously disturbed the market order and harmed the Chinese patients' interests, said the official.
The meeting came after the ministry announced on July 11 that some employees from GSK China are being investigated for bribery and tax-related violations. Four senior executives from the company are being held by police over their alleged involvement.
The official said the GSK head office should face up to its responsibilities and obligations, fulfil the commitments made in its apologetic statement, and cooperate with the Chinese police in investigation. The official hoped GSK China would resume productions and normal business operation at an early date.
Hussain issued an apology on behalf of GSK head office, saying that the office will fully support the Chinese government's anti-corruption determination and actions, as well as support and cooperate with the police in investigations. It says it will also improve its business and practices to better serve patients.
"GSK shares the desire of the Chinese authorities to root out corruption. These allegations are shameful and we regret this has occurred," he said.
GlaxoSmithKline Chief Executive Andrew Witty will detail what action the drugmaker is taking in response to the allegations of bribery when he presents quarterly results later this week.
Meanwhile, Shanghai police have arrested a British man, Peter Humphrey, who runs an international business risk advisory firm that has worked with drug companies, including GSK. Humphrey, the founder of ChinaWhys, says on its website that it aims to guide multinationals through "the labyrinth" of risks and opportunities in China.
When meeting with Abbas Hussain, president of Europe, Emerging Markets and Asia Pacific of the GSK, the unidentified ministry official said some senior executives of GSK China colluded with affiliated companies to offer large bribes to push up drug prices, expand sales and seek illegal profits, according to a ministry statement.
GSK's suspected crimes have not only violated Chinese laws, but also seriously disturbed the market order and harmed the Chinese patients' interests, said the official.
The meeting came after the ministry announced on July 11 that some employees from GSK China are being investigated for bribery and tax-related violations. Four senior executives from the company are being held by police over their alleged involvement.
The official said the GSK head office should face up to its responsibilities and obligations, fulfil the commitments made in its apologetic statement, and cooperate with the Chinese police in investigation. The official hoped GSK China would resume productions and normal business operation at an early date.
Hussain issued an apology on behalf of GSK head office, saying that the office will fully support the Chinese government's anti-corruption determination and actions, as well as support and cooperate with the police in investigations. It says it will also improve its business and practices to better serve patients.
"GSK shares the desire of the Chinese authorities to root out corruption. These allegations are shameful and we regret this has occurred," he said.
GlaxoSmithKline Chief Executive Andrew Witty will detail what action the drugmaker is taking in response to the allegations of bribery when he presents quarterly results later this week.
Meanwhile, Shanghai police have arrested a British man, Peter Humphrey, who runs an international business risk advisory firm that has worked with drug companies, including GSK. Humphrey, the founder of ChinaWhys, says on its website that it aims to guide multinationals through "the labyrinth" of risks and opportunities in China.
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