Boston, MA 07/28/2014 (wallstreetpr) – GlaxoSmithKline plc (ADR) (NYSE:GSK) employees are reported to have been the subject of an investigation carried out by the FBI on bribery allegations made against the company on its operations in China and Syria. The Department of Justice (DOJ) has also carried out its own investigations on the company’s operation in China.
Glaxo Cooperating With Authorities
The U.S. Securities and Exchange Commission is also reportedly investigating the company’s business in the country on allegations that its former top executive, Mark Reilly, was involved’ in a ‘Large-Scale’ bribery operation. Glaxo has already confirmed that it is cooperating with the investigations having informed the DOJ and SEC of the ongoing Chinese investigations. Officials had alleged that GlaxoSmithKline plc (ADR) (NYSE:GSK) funneled up to $480 million in bribes through travel agencies last year July.
Bribery Allegations in Syria
Last week, the company was also under the spotlight after it allegedly received an anonymous email claiming some of its employees bribed doctors and pharmacist in Syria as a way of promoting GlaxoSmithKline plc (ADR) (NYSE:GSK)’s products. The bribes are reported to have been offered in the form of trips, free Samples cash payments as well as free dinners.
The anonymous email also alleges that the company’s employees were involved in the smuggling of a narcotic product from Syria to Iran. Reports indicate that the bribery case in Syria is much bigger in terms of scale when compared to the allegations levelled against the company in China. Glaxo through a statement has reiterated that its employees in China acted outside its processes and controls to defraud it and the Chinese health care system at large.
The company has also confirmed that it is working closely with authorities to ensure a speedy settlement of the matter. The U.K’s Serious Fraud Office is also reportedly conducting investigations into the matter on possible violations of GlaxoSmithKline plc (ADR) (NYSE:GSK)’s commercial practices.
