Major drug firm to reveal China bribes scandal
The chief executive of GlaxoSmithKline (GSK) is to admit to major failings in the pharma's Chinese operations, following allegations by the country's security ministry that the company took kick-backs and paid bribes to government officials.
Andrew Witty is set to use the company's second-quarter results next week to reveal that GSK's own investigation into allegations of a "huge economic scam" has uncovered evidence that senior executives in the country were involved in an orchestrated attempt to falsify invoices, pay sweeteners to third parties and siphon off payments.
It expects to face fines which could total tens of millions of euro, as well as criminal trials for the individuals involved. GSK is even worried that execution may be the final sanction.