Updated on 1 July 2013
Some employees of GSK have allegedly been detained by the Chinese police following allegations of data fraud and bribery in the company’s mainland operations
Singapore: The Chinese police have reportedly detained employees of British pharmaceuticals major GlaxoSmithKline (GSK) following allegations of data fraud and bribery in the company's mainland operations. Although no news report confirms the detention, many reports about the graft investigation widening have emerged, after a whistle blower apparently tipped off the Chinese police.
Even as the probe by the US Department of Justice over alleged violations of the US Foreign Corrupt Practices Act in China in major pharmaceutical firms like GlaxoSmithKline, AstraZeneca and others are still underway, GSK had in the last month made a shocking announcement.
The company has $500 million worth investments in China and had reportedly fired the head of R&D in China, Dr Zang Jiangwu, last month. GSK said that they were conducting internal investigations into allegations from an anonymous tipster that its sales staff in China was involved in widespread bribery of doctors to prescribe drugs from 2004 to 2010. On June 11, 2013, the company spokesperson said that they had discovered a scientific paper co-authored by Dr Zang that contained fake data.
The company is also under the US Department of Justice scanner since 2010 over alleged violations of the US Foreign Corrupt Practices Act in China.
The detained employees have been taken into custody from several regions, including Beijing, Shanghai and Changsha, after data fraud and bribery allegations in the multinational's mainland operations surfaced.