Risk of UK and US action hangs over GSK
With listings in London and New York, the drug giant could face further investigations if its executives are convicted of bribery on the mainland
British drug giant GlaxoSmithKline (GSK), which is embroiled in a graft scandal on the mainland, risks becoming the first large multinational to be charged under Britain's Bribery Act, said Rob Morris, the managing director of advisory firm AlixPartners.
No big company had been charged under the act since it came into force two years ago, Morris said.
"There had been a minor prosecution under the UK Bribery Act of a court clerk found guilty of accepting bribes, but major corporations have not been prosecuted, although there apparently are a number of large investigations currently being undertaken," he said.
Mainland authorities have accused GSK of using mainland travel agencies to funnel nearly 3 billion yuan (HK$3.8 billion) in kickbacks to doctors, hospitals and other groups who prescribed its drugs.
"The UK Bribery Act refers to corruption that would appear to be relevant to allegations in the GSK case," Morris said. "The UK Bribery Act applies to the bribery of not only government officials but also private individuals."
The act also covered third parties, such as the travel agencies allegedly used by GSK, that conducted bribery on a company's behalf, said Hugo Williamson, the managing director of consultancy Risk Resolution Group.