GlaxoSmithKline Denies Claims of Bribery in China

British pharmaceutical company GlaxoSmithkline is under investigation by Chinese authorities who said that its executives have admitted to bribes and other fraudulent ways of business in order to boost sales.

China’s Ministry of Public Security said the company dealt with hospitals, doctors, pharmaceutical associations and even government workers in terms of pay-offs and financial support on certain projects. China, however, failed to give specific names of these executives, but it remains firm in its stand that the corrupt tactics by the multi-national company involved large sums of money.

This revelation happened after authorities were reported to have raided offices of GlaxoSmithKline in three key cities, including Shanghai, in a government effort to crackdown corruption by multi-national firms. Workers of GlaxoSmithKline were apparently also detained by the authorities during the raid.

In response, GlaxoSmithKline denied the allegations and even said that an earlier investigation revealed no evidence of any corrupt practices. A whistle-blower allegedly came forward and accused the company of bribery.

“We take all allegations of bribery and corruption seriously. We continuously monitor our businesses to ensure they meet our strict compliance procedures. We have done this in China and found no evidence of bribery or corruption of doctors or government officials. However, if evidence of such activity is provided we will act swiftly on it.”

To the pharmaceutical industry, China is a growing market. There have been assumptions that these crackdowns, although fairly regular in this country, are actually attempts of the government to gain control over drug prices and keep major Chinese companies competitive.