Hammer to Fall on GSK's Chinese Executives

Reuters are reporting that Chinese police investigating allegations of widespread corrupt practices at GlaxoSmithKline Plc (GSK) are likely to charge some of its Chinese executives but not the British drugmaker itself.

In a nutshell this means that by not charging GSK, as a whole, they won't fall foul of any major fines and it will be business as usual for its operations in China.

The Chinese executives involved in the huge fraud will, it appears, take the brunt of any action dished out by the Chinese authorities.

Reuters are also reporting that Chinese authorities are unlikely to lay criminal charges against Briton Mark Reilly, GSK's former head of China operations. The British former chief of GlaxoSmithKline’s operation in China returned to China to “help” police with bribery investigations but was barred from leaving. Reilly had previously left China shortly before the Chinese police revealed the investigation and arrested four Chinese GSK executives.

The police investigation into GSK is likely to be concluded around the end of November or in December.


Bob Fiddaman


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