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GlaxoSmithKline executives in China 'confess to bribery and tax violations' GlaxoSmithKline executives in China 'confess to bribery and tax violations'
(about 2 hours later)
Executives of British drug maker GlaxoSmithKline in China have confessed to charges of bribery and tax law violations after initial questioning by Chinese police, according to the country's security ministry.Executives of British drug maker GlaxoSmithKline in China have confessed to charges of bribery and tax law violations after initial questioning by Chinese police, according to the country's security ministry.
The company is suspected of offering bribes to government officials, medical associations, hospitals and doctors to boost sales and prices, China's security ministry said in a statement on its website on Thursday.The company is suspected of offering bribes to government officials, medical associations, hospitals and doctors to boost sales and prices, China's security ministry said in a statement on its website on Thursday.
GSK is also suspected of using fake receipts in unspecified tax law violations, the ministry added.GSK is also suspected of using fake receipts in unspecified tax law violations, the ministry added.
"After initial questioning the suspects have admitted to the crimes, and the investigation is ongoing," the statement said."After initial questioning the suspects have admitted to the crimes, and the investigation is ongoing," the statement said.
The statement did not give details on the number of executives questioned, their identities or when the questioning took place.The statement did not give details on the number of executives questioned, their identities or when the questioning took place.
Officials at GSK could not immediately be reached for comment. GSK said it would co-operate with the authorities but said Thursday's announcement was the first official communication it has received about the investigation.
"Corruption has no place in our business," said a company statement. "If evidence of such activity is provided we would of course act swiftly on it."
In recent months China has targeted foreign firms on multiple fronts including alleged price-fixing, quality controls and consumer rights, forcing companies to defend their reputations in a country where international brands often have a valuable edge over local competitors in terms of public trust.In recent months China has targeted foreign firms on multiple fronts including alleged price-fixing, quality controls and consumer rights, forcing companies to defend their reputations in a country where international brands often have a valuable edge over local competitors in terms of public trust.
Police in the south-central Chinese city of Changsha said last week they were investigating high-level Chinese staff at GSK on suspicion of unspecified economic crimes.Police in the south-central Chinese city of Changsha said last week they were investigating high-level Chinese staff at GSK on suspicion of unspecified economic crimes.
GSK said on Monday it was investigating new allegations that its staff had used improper tactics to market Botox in China, but had so far found no evidence of bribery or corruption.GSK said on Monday it was investigating new allegations that its staff had used improper tactics to market Botox in China, but had so far found no evidence of bribery or corruption.
GSK, Merck and other foreign and domestic drugmakers were also being investigated by China's top economic planning agency on cost and pricing issues.GSK, Merck and other foreign and domestic drugmakers were also being investigated by China's top economic planning agency on cost and pricing issues.
China is an increasingly important market for international pharmaceutical companies, which are relying on growth in emerging markets to offset slower sales in western markets where many former blockbuster drugs have lost patent protection.China is an increasingly important market for international pharmaceutical companies, which are relying on growth in emerging markets to offset slower sales in western markets where many former blockbuster drugs have lost patent protection.