Four GSK China execs held for investigation
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E-mail Xinhua, July 15, 2013
Weng was also doing business with other GSK departments and the kickbacks his agency had given to GSK China's senior managers since 2009 allegedly totaled about 20 million yuan, part of which had been used for the company's bribery.
As GSK has strict internal financial regulations regarding expenses for business receptions and gifts -- no more than 300 yuan for each person -- it is thought that the travel agency and the managers usually used fraudulent reports and falsely-issued invoices to con the company out of the money.
The travel agency had also obtained a huge amount of money in the form of business revenues, according to Weng.
He said to his knowledge his agency is not the only one having similar deals with GSK.
Some travel agencies had reportedly offered "sex bribes" to GSK senior executives to maintain business contact.
SURGING MEDICINE PRICES
Medicine prices are regulated by the government in China and patients rarely have a say in medical pricing.
"If we want to sell a medicine in China, we should handle the procedures with the drug administration, price regulator, social security authority, local governments as well as hospitals and doctors, and all these procedures may give rise to corruption risks," according to Liang.
The costs for the large bribes will eventually be transferred to patients through higher medicine prices, Liang said, adding that it is estimated that such extra costs may account for up to 30 percent of medicine prices.
A medicine that cost only 30 yuan to produce could end up setting patients back 300 yuan, he said.
A statement from the Public Security Ministry has pledged serious investigation of the case to deter similar bribery in commercial fields.
All relevant government authorities will also work together in regulating the medical industry to curb inflated medicine prices and benefit the public, it said.
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