GlaxoSmithKline staff held in three Chinese cities as graft investigation widens

Chinese police have detained employees of British pharmaceuticals giant GlaxoSmithKline (GSK) in Beijing, Shanghai and Changsha, following allegations of data fraud and bribery in the multinational's mainland operations.

Last week, police seized several people at GSK's Shanghai office, including a senior foreign finance executive. They also took employees from the company's Beijing office, said a source in Shanghai's pharmaceutical sector.

"GSK Shanghai staff were told to take Friday off," said the source, who did not want to be identified. "The case has been sparked by some whistle-blower within the company. This is not the first time its staff have alerted police about the company's bribery activities."

Xinhua reported that it had learned from police that several senior executives from GlaxoSmithKline (China) Investment Co in Changsha, the capital of Hunan province, were being investigated by the city's police for suspected economic crimes.

Changsha police declined to provide Xinhua with more details. The 's Shanghai source was unable to provide details of the arrest of GSK executives in Changsha. Calls to Changsha police were not returned.

Last month, it was reported that New York- and London-listed GSK, which has over US$500 million of investments in China, was conducting an internal investigation into allegations from an anonymous tipster that its sales staff in China were involved in widespread bribery of doctors to prescribe drugs from 2004 to 2010.