S3x Scandal Rips Through GSK

According to the Guardian, GlaxoSmithKline, GSK, has confirmed the existence of a covert s3x tape of the former head of its China division. It is the latest chapter in a lurid bribery saga which continues to rock the pharmaceutical giant.

The secretly filmed video of Mark Reilly and his Chinese girlfriend at his Shanghai apartment was emailed to 13 GSK executives in March 2013, including the chief executive, Andrew Witty.

Accompanying the footage were detailed allegations of sales and marketing practices described as “pervasive corruption” by an anonymous writer, “gskwhistleblower”, according to a report in the Sunday Times, which first revealed the existence of the video at the weekend.

Reilly is accused by Chinese authorities of running “a massive bribery network” and faces a possible jail sentence. He remains a GSK employee, although he stood down last July when the scandal first emerged. His whereabouts are unknown and his lawyer declined to comment.

When the s3x video surfaced, GSK hired a British corporate investigator, Peter Humphrey, to find out who broke into Reilly’s apartment, according to the Sunday Times. But he was not told about the bribery allegations until two months later.

In July last year Humphrey and his wife and business partner, American citizen Yu Yingzeng, were arrested by Chinese police over charges that they had illegally bought and sold personal data of Chinese citizens.

The pair were later paraded on Chinese television in orange prison vests and handcuffs when Humphrey said he had obtained illegal information and regretted it. Speaking in Mandarin, Humphrey made no mention of GSK in the “confession” aired on state channel CCTV.

A spokesman for GSK confirmed that its China division had engaged Chinawhys, Humphrey’s firm, but declined to comment further on his role.

The company said it was continuing to co with the Chinese authorities: “The issues relating to our China business are very difficult and complicated,” it said. “As we have said previously, the allegations that have been raised are deeply concerning to us. We have committed significant resources to find out what happened in China, including an independent legal review.

“We also continue to make fundamental changes to our business in China. We are learning lessons from this situation and we are determined to take all actions necessary as a result.”

The emergence of the video is yet another setback for GSK, already reeling from allegations that its sales executives paid 3 billion yuan (£285m) in bribes to encourage doctors to use its medicines. The company has described the reports as “shameful”, but has always insisted there were no systemic problems. Along with Reilly, two Chinese executives, Zhang Guowei and Zhao Hongyan, also face charges of bribing doctors and hospital officials.

Since the China scandal broke, GSK has The firm has also been accused of bribery in Poland, Iraq, Jordan and Lebanon, while in May the Serious Fraud Office opened a criminal investigation into GSK’s China business.

Culled from The Gaurdian.