[Ip-health] GOOD VERDICT....................
Nelson Para Subramaniam
nparamf at gmail.com
Fri Sep 26 07:56:56 PDT 2014
Excerpt: "The guilty verdict was delivered after a one day closed door
trail in Changsha, the capital city of Hunan province. The fine was the
biggest ever imposed by a Chinese court."
[image: (photo: ABC)]
[image: go to original article]
GlaxoSmithKline Fined $488M for "Massive Bribery Network"
By ABC News
25 September 14
hina has fined the British pharmaceuticals giant GlaxoSmithKline
$488.8 million (3 billion Yuan) for a "massive bribery network" to get
doctors and hospitals to use its products. Five former employees were
sentenced to two to four years in jail, but ordered deported instead of
imprisoned, according to state news agency Xinhua today.
The guilty verdict was delivered after a one day closed door trail in
Changsha, the capital city of Hunan province. The fine was the biggest ever
imposed by a Chinese court.
The court gave Mark Reilly, former head of GSK Chinese operations, a
three-year prison sentence with a four-year reprieve, which meant he is set
to be deported instead of serving his time in a Chinese jail. His
co-defendants received two to four years prison sentences with reprieves.
Reilly was accused of operating a "massive bribery network" in May. The
police said it is believed Reilly authorized his salespeople to pay
doctors, hospital officials and health institutions to use GSK's products
Chinese authorities first announced the investigation on GSK in July 2013.
The police said the company had funneled up to 3 billion Yuan to travel
agencies to facilitate bribes to doctors and officials. The money was the
exact amount of the fine.
Throughout 2012 a stream of anonymous emails alleging bribery authorized by
senior staff at GSK were sent to Chinese regulators, according to media
reports. Atthe beginning of 2013, the anonymous emails began to arrive at
GSK headquarter in London, along with a sex tape of Mark Reilly and his
Chinese girlfriend, according to media reports.
The charges claim that GSK hired Shanghai-based investigator Peter Humphrey
and his American wife, Yu Yingzeng, to locate the whistleblower. The
Humphreys were detained and charged with illegally obtaining phone logs,
travel records and other data which then they put in a report to GSK.
GSK released a statement of apologies to the Chinese government
<http://abcnews.go.com/topics/business/chinese-government.htm> and people
on its website.
"GSK Plc has reflected deeply and learned from its mistakes, has taken
steps to comprehensively rectify the issues identified at the operations of
GSKCI, and must work hard to regain the trust of the Chinese people," the
The statement also said future commitments include investment in Chinese
science, improved access of its products in both city and rural areas
across the country through greater expansion of production and flexible
Taking bribery from drug companies
<http://abcnews.go.com/topics/business/drug-companies.htm> and over
prescribing medicine to patients is a common hidden rule among doctors in
China. It is not uncommon for patients give doctors red envelopes with cash
as a blunt plea for them to do a good job on surgeries.
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