SHANGHAI, July 19, 2013 (AFP) – China has shut down a travel agency
which served as a conduit for bribes allegedly given by staff of British
drug firm GlaxoSmithKline (GSK), the government and state media said.
Chinese
authorities say GSK employees bribed government officials,
pharmaceutical industry groups, hospitals and doctors to promote sales.
The
Shanghai Linjiang International Travel Agency was ordered to halt
business over “illegal activities” including fake billing, the Shanghai
tourism administration said in a statement.
Police also detained the agency’s chief representative Weng Jianyong, the Shanghai Daily newspaper reported on Friday.
GSK employees gave the bribes directly and through travel agencies and project sponsorship, police said last week.
A
police official estimated GSK funnelled nearly $500 million in
suspected bribes through travel agencies and consultants over several
years.
Media reports say more than 20 people have been detained in the case, including pharmaceutical and travel industry personnel.
Police
have held four top executives of GSK China and prevented another, the
firm’s British finance director, from leaving the country though he has
not been formally detained.
Weng, who as Linjiang’s “legal
representative” is responsible for the company’s activities under
Chinese law, told state television that his agency arranged cash
payments of 40,000 yuan to 500,000 yuan ($6,500 to $81,000) for GSK.
“Company
(GSK) regulations only allowed gifts of a hundred or two hundred yuan
which definitely wouldn’t do,” he said in an interview aired this week.
GSK
executives also took kickbacks from travel agencies in return for
organising conferences, some of which did not exist, police say.
In
a statement earlier this week GSK said it was “deeply concerned” about
allegations of fraud by individuals at the company and third-party
agencies and would cooperate with the investigation.
Source: pmnewsnigeria