Serious Fraud Office to investigate GSK

Published: 28-May-2014

The company is already facing allegations of misconduct in several countries


UK pharmaceutical company GlaxoSmithKline is to have its 'commercial practices' investigated by the Serious Fraud Office (SFO).

The company, which is already facing allegations of bribery in several countries, gave no further details but said it would 'continue to cooperate fully' with the SFO.

In a short statement, GSK said it was 'committed to operating its business to the highest ethical standards'.

Earlier this month GSK staff were accused by Chinese authorities of bribing government and hospital officials in the country after a 10-month investigation by prosecutors.

The pharmaceutical company is also facing inquiries into similar allegations in Poland and Iraq.

GSK has previously confirmed that it informed the SFO, as well as the US Department of Justice and the US Securities and Exchange Commission, about the Chinese investigation.

GSK is committed to operating its business to the highest ethical standards

It is not clear whether the SFO investigation is focused solely on the Chinese case or will be more wide-ranging.

The Director of the SFO confirmed that the Agency had 'opened a criminal investigation into the commercial practices of GlaxoSmithKline plc and its subsidiaries'.

The SFO added that 'whistleblowers are valuable sources of information to the SFO in its cases' and that it welcomes 'approaches from anyone with inside information on all our cases including this one'.

In April, GSK confirmed that the company was also investigating allegations regarding the activity of a 'small number' of individuals in its operations in Jordan and Lebanon. The company said it has 'zero tolerance for unethical or illegal behaviour' and expects its staff to uphold its 'high standards'.

GSK publicly discloses all cases of misconduct identified in the company and last year there were 161 violations relating to breaches of its sales and marketing policies, resulting in 48 dismissals and 113 written warnings. These numbers are said to be similar to those reported by other companies in the pharmaceutical sector.

Also in April, BBC Panorama heard from whistleblower Jarek Wisniewiski, a former sales rep for GSK in the Polish region of Lodz, who told the television programme that doctors had been paid to promote the company's asthma drug Seretide.

Eleven doctors in the country and a GSK regional manager were charged over alleged corruption between 2010 and 2012, BBC Panorama revealed. GSK said that a training programme to help improve diagnostic standards and medical training in respiratory disease was run by doctors in Poland from 2010 to 2012.

'These sessions were delivered by specialist healthcare professionals who, based on contracts signed with GSK, received payments appropriate to the scope of work as well as their level of knowledge and experience. The provision of sessions under this programme was agreed with the Polish healthcare centres,' the company said.

'Following receipt of allegations regarding the conduct of the programme in the Lodz region, GSK has investigated the matter, using resources from both inside and outside the company. The investigation found evidence of inappropriate communication in contravention of GSK policy by a single employee. The employee concerned was reprimanded and disciplined as a result.'

'We continue to investigate these matters and are co-operating fully with the CBA [Poland's Central Anticorruption Office].'

If the allegations are proved, GSK may have violated both the UK Bribery Act and the US Foreign Corrupt Practices Act. It is illegal for companies based in either country to bribe government employees abroad.

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