GlaxoSmithKline boss places blame for bribery case on senior Chinese executives

Andrew Witty, the chief executive of Britain's biggest drug company, GlaxoSmithKline (GSK), said yesterday that much of the blame for the investigation of his company on the mainland appeared to rest on senior Chinese executives.

"We have been told by the Chinese authorities that it appears certain senior Chinese executives [of GSK] appear to have broken Chinese laws and defrauded the company and the Chinese health-care system," Witty told a press conference in London. "This appears to involve individuals working outside GSK's controls and acting inappropriately in the market."

No allegations had been made against GSK China chief Mark Reilly or head of China finance Steve Nechelput, both Britons, he said.

Reilly is not in China, while Nechelput is on the mainland and has been barred from leaving by the authorities.

Four senior Chinese executives of GSK have been detained on the mainland: vice-president and business operations general manager Liang Hong , vice-president and human resources supervisor Zhang Guowei , legal affairs supervisor Zhao Hongyan and business development general manager Huang Hong .

Mainland authorities allege that GSK used travel agencies to funnel nearly three billion yuan (HK$3.8 billion) in kickbacks to doctors, hospitals and other groups and that unnamed GSK managers took bribes from travel agencies, including sexual favours from prostitutes.

Witty said: "They are shameful allegations. If they are true, that is very disappointing.