China Investigates GSK Executives for Bribery and Tax Violations
Created: 2013-07-12 15:31 EST
Some senior executives from multinational pharmaceutical company GlaxoSmithKline (GSK) are being investigated for suspected bribery and tax-related violations, Chinese police said Thursday.
The police statement describes their suspected offenses as "serious economic crimes”.
The suspects allegedly offered large amounts of bribes to government officials, medical industry associations and foundations, hospitals and doctors.
Their aim was to expand the company's market and raise the price of its medicines.
GSK is also suspected of being involved in tax-related crimes, including illegal cashing by falsely issuing exclusive value-added tax invoices and colluding with travel agencies to finance illegal acts.
It is believed that the offenses had been occurring for some time, involving a large number of people and a significant amount of money.
The police statement says some travel agency employees are also being held as suspects and interrogated by police.
The police say they have obtained sufficient evidence and that the suspects have already confessed to the offenses.