China accuses mega pharmaceutical company GSK of bribery

China accuses mega pharmaceutical company GSK of bribery

China accuses mega pharmaceutical company GSK of briberyIn 2013 Chinese authorities accused pharmaceutical giant GlaxoSmithKline, of conducting an extensive bribery scheme. The Chinese government claimed GSK had created a “massive bribery network,” charging higher prices for medication, and offering doctors sexual favors, resulting in 3.8 billion in kickbacks. Salaries were based on performance, and the IT and legal departments were tasked with it covering it up. The accusations came just a year after GSK was ordered to pay $3 billion to the U.S. government following similar claims. Chinese GSK head, Mark Reilly fled the country just days before the allegations were made, but was tried in secret a year later and was given a three-year suspended prison sentence. Leading most to believe he will avoid jail time. The court eventually found GSK guilty and ordered the company pay a fine of 3 billion yuan, the largest in China’s history. Since the company is also fighting bribery charges in Romania, the United Arab Emirates, Iraq, Syria, Lebanon, Jordan, and Poland.