GlaxoSmithKline has been fined $488.8 million (3 billion Yuan) by the Chinese government for bribery

The pharmaceutical corporation GlaxoSmithKline (GSK)has been fined $488.8 million (3 billion Yuan) by the Chinese government for attempting to bribe doctors and hospitals in the country to use its products.

State news agency Xinhua claimed that after the  “massive bribery network” was uncovered, five former employees were sentenced to two to four years in jail, but ordered deported instead of imprisoned.

The fine was the biggest ever handed out by a Chinese court.

The court gave Mark Reilly, former head of GSK Chinese operations, a three-year prison sentence with a four-year reprieve, which meant he is set to be deported instead of serving his time in a Chinese jail. His co-defendants received two to four years prison sentences with reprieves.

Chinese authorities claim that Reilly authorized his salespeople to pay doctors, hospital officials and health institutions to use GSK’s products since 2009.

It has been claimed that the pharmaceutical giant had channelled up to 3 billion Yuan to travel agencies to facilitate bribes to doctors and officials. The fine was the exact amount that the corporation used to try and bribe doctors.

In 2012, it was claimed that the drug corporation also tried to bribe Chinese regulators. The charges also allege that GSK sent spies to gather data on whistleblowers, and obtain  phone logs, travel records and other data which then they put in a report to GSK.

In a statement published on its website, GSK claimed: “GSK Plc has reflected deeply and learned from its mistakes, has taken steps to comprehensively rectify the issues identified at the operations of GSKCI, and must work hard to regain the trust of the Chinese people.”

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