Updated on 5 September 2013
"With such unreasonable targets, if we do not resort to illegal measures, it's very difficult to achieve such high sales growth. Mark Reilly changed the company's objective to sales being king," Mr Huang was quoted as saying in the Chinese media about the former China head. It can be recalled that Mr Reilly had left the country immediately after the GSK scandal broke, claiming that it was a pre-planned business trip.
However, even after these direct allegations, the Public Security Ministry has not explicitly accused Reilly or GSK's London headquarters of corruption in its statement.
"To avoid being prosecuted under the UK Bribery Act and the US Foreign Corrupt Practices Act, GSK must show that the corruption was limited to isolated acts by some bad apples working outside GSK's controls, which is how GSK CEO Sir (Dr) Andrew Witty has portrayed it," the Chinese media report said.
Only last year, GSK had made a fine settlement of $3 billion to the US Department of Justice for unlawfully promoting certan prescription drugs and failing to report some safety data. As a British, New York-listed firm, GSK is subject to Britain's Bribery Act and must comply with the FCPA.
GSK has however maintained that some of its employees may have committed violations and the company's CEO Andrew Witty has suggested that the bribery was unknown to upper management and was the act of a few bad players. "We remain deeply concerned by the allegations of fraudulent behavior and ethical misconduct in our China business. The reports published on September 4, relate to the ongoing investigation being conducted by the Chinese authorities. The issues identified would be a clear breach of our corporate values and we have zero tolerance for any behavior of this nature," a GSK spokesperson told the press.
Also Read: Anti-corruption rules in China