Tuesday, 10 December 2013

Shanghai Family Planning official arrested in GSK corruption investigation

A family planning official of Shanghai has been suspended from his job amid claims he is connected to an ongoing investigation into UK drug company GlaxoSmithKline.
Huang Fengping was vice director of the city's Commission of Health and Family Planning, but his name was removed from the commission's official website late last week.
A source with knowledge of the matter told Shanghai Daily yesterday that Huang had been taken away by the Ministry of Public Security and that its investigation was in connection with economic issues related to the GSK bribery scandal.
Officials from the commission declined to comment yesterday.
In July, the ministry detained four GSK executives and other related personnel in China over allegations they were involved in giving bribes totaling 3 billion yuan (US$484 million) to government officials, medical associations and foundations, hospitals and doctors.
Huang, a neurosurgeon, had been working at Huashan Hospital for more than 10 years before he became the commission's vice director in May last year.
He was also a member of the Shanghai Committee of the Chinese People's Political Consultative Conference representing the Chinese Peasants' and Workers' Democratic Party Shanghai Committee.
The CPPCC Shanghai Committee has also removed Huang's name from its website.
The four GSK executives detained by police had admitted offering large bribes to drive drug sales and raise the price of its products, police said.
Most of the bribes, which could make up between 20 percent and 30 percent of retail drug prices, are thought to have been given through intermediary agencies such as travel agencies and exhibition or conference organizers.
Former GSK China General Manager Mark Reilly was asked to remain in China to help with the investigation.
No charges have yet been brought.
GSK reported a drop of 61 percent in its sales of drugs and vaccines in China in the third quarter.
Andrew Witty, GSK's CEO, said the company was cooperating with Chinese authorities in their investigation and said business wrongdoings revealed by the authorities were "totally unacceptable."
Source: ECNS

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