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| GlaxoSmithKline executive could face prison in China over bribery claims | |
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| A British GlaxoSmithKline executive has been accused by Chinese police of running "a massive bribery network", as the corruption scandal at the pharmaceutical group deepens. | A British GlaxoSmithKline executive has been accused by Chinese police of running "a massive bribery network", as the corruption scandal at the pharmaceutical group deepens. |
| Mark Reilly ran GSK's operations in China but now risks a jail sentence in the country after he was accused of offences that carry a maximum sentence of life in prison. | |
| Chinese police claimed that that Reilly and two other Chinese executives, Zhang Guowei and Zhao Hongyan, bribed doctors and hospital officials. The bribery allegations, which will now be passed to prosecutors, were harsher than many Chinese-based executives expected, Reuters reported. | |
| The police accused GSK, the UK's largest pharmaceutical company, of offering billions of yuan in bribes to doctors and other hospital staff in order to boost sales of its products. Although Reilly stood down from running GSK's China operations last July he remains an employee. | The police accused GSK, the UK's largest pharmaceutical company, of offering billions of yuan in bribes to doctors and other hospital staff in order to boost sales of its products. Although Reilly stood down from running GSK's China operations last July he remains an employee. |
| A report by the Chinese state news agency Xinhua highlights the role of the Briton. Zhang, a former vice-president of GSK China, told Xinhua that pressure to increase sales led to the bribery. "When Reilly took over the post the company's strategy shifted from profit-oriented to sales-oriented. The sales target in China was raised every year to compensate the reduction in US and European markets." | A report by the Chinese state news agency Xinhua highlights the role of the Briton. Zhang, a former vice-president of GSK China, told Xinhua that pressure to increase sales led to the bribery. "When Reilly took over the post the company's strategy shifted from profit-oriented to sales-oriented. The sales target in China was raised every year to compensate the reduction in US and European markets." |
| When lurid allegations of doctors being bribed with £320m worth of extravagant gifts and sexual favours first emerged last year GSK said the investigation was focused on Chinese executives rather than British managers. | When lurid allegations of doctors being bribed with £320m worth of extravagant gifts and sexual favours first emerged last year GSK said the investigation was focused on Chinese executives rather than British managers. |
| GSK declined to comment on the specific allegations against Reilly. But in a statement the company said: "We take the allegations that have been raised very seriously. They are deeply concerning to us and contrary to the values of GSK. | GSK declined to comment on the specific allegations against Reilly. But in a statement the company said: "We take the allegations that have been raised very seriously. They are deeply concerning to us and contrary to the values of GSK. |
| "We want to reach a resolution that will enable the company to continue to make an important contribution to the health and welfare of China and its citizens." | "We want to reach a resolution that will enable the company to continue to make an important contribution to the health and welfare of China and its citizens." |
| Reilly has been working for GSK since 1989, according to his LinkedIn profile. A graduate of University College London, he holds a PhD in pharmacology and an accountancy qualification. He rose up the GSK ranks, doing a variety of commercial jobs that included stints in Singapore, the USA and GSK's headquarters in London. He took charge of GSK's operations in China in January 2009, and was based in Shanghai. He left the country last July when the bribery scandal broke. He later returned and was subsequently barred from leaving. Ten days after the scandal broke Reilly was replaced as GSK's China boss by Herve Gisserot. | Reilly has been working for GSK since 1989, according to his LinkedIn profile. A graduate of University College London, he holds a PhD in pharmacology and an accountancy qualification. He rose up the GSK ranks, doing a variety of commercial jobs that included stints in Singapore, the USA and GSK's headquarters in London. He took charge of GSK's operations in China in January 2009, and was based in Shanghai. He left the country last July when the bribery scandal broke. He later returned and was subsequently barred from leaving. Ten days after the scandal broke Reilly was replaced as GSK's China boss by Herve Gisserot. |
| Chinese police have not said whether Reilly has been detained, but officials at the British Consulate in Shanghai have said they are in contact with him and providing assistance. | Chinese police have not said whether Reilly has been detained, but officials at the British Consulate in Shanghai have said they are in contact with him and providing assistance. |
| GSK is also embroiled in a similar scandal in Poland after a whistleblower, Jarek Wisniewiski, told the BBC's Panorama programme that company representatives paid doctors to boost prescriptions. GSK is also investigating bribery allegations in Jordan and Lebanon. | GSK is also embroiled in a similar scandal in Poland after a whistleblower, Jarek Wisniewiski, told the BBC's Panorama programme that company representatives paid doctors to boost prescriptions. GSK is also investigating bribery allegations in Jordan and Lebanon. |