UpdateUK launches investigation into GlaxoSmithKline in wake of graft probes
Serious Fraud Office launches formal criminal investigation into the leading British drug company's sales practices in several countries
The British Serious Fraud Office has opened formal criminal investigation into the commercial practices of GlaxoSmithKline in "numerous" countries.
"We are looking at possible patterns across numerous global jurisdictions. Media reports and developments in China have not triggered our announcement. We have been looking at this for some time and it's coincidental that our investigation, which has been in the intelligence phase until now, has now moved to a formal investigation," said a source close to the investigation who spoke with the South China Morning Post on condition of anonymity.
The official said the SFO welcomed inside information on GSK from whistle-blowers.
GSK faces corruption claims in China, Jordan, Lebanon, Iraq and Poland. The drug giant, listed in London and New York, is subject to oversight by anti-corruption bodies of both jurisdictions.
"The SFO, like its counterpart in the US, has been monitoring GSK's situation in China for evidence supporting any violation of the Bribery Act. The US and UK authorities will be extremely interested in the evidence that the Chinese prosecutors present," said Daniel Roules, a Shanghai-based partner of US law firm Squire Sanders.
On May 14, the Ministry of Public Security accused GSK's former China business chief Mark Reilly of not only being involved in the bribery of officials, but also of covering up the bribery. It alleged that Reilly, GSK vice-president Zhang Guowei and legal affairs supervisor Zhao Hongyan bribed Chinese officials to block a government investigation into the company.