Chinese travel agencies in corruption probe
Chinese travel agencies have become entangled in the GlaxoSmithKline bribery case, accused of laundering half a billion dollars in illegal payments from the British drugmaker to Chinese officials.
GSK has been accused of transferring as much as 3 billion yuan ($489 million) to more than 700 travel agencies and consultancies, who then passed the money to Chinese officials and doctors.
The bribery was allegedly designed to boost sales and prices of GSK medicines in the huge and lucrative Chinese market.
Four senior GSK executives in China have been arrested; the Ministry of Public Security said they have confessed to bribery and tax evasion.
The People’s Daily newspaper said the travel agencies billed GSK for phony "conference services" and then used some of the money on bribes.
GSK has previously said it conducted a lengthy internal investigation into worries over corruption and found no widespread evidence of wrongdoing. It said it would cooperate with Chinese police over their ongoing investigation.
By Cheryl Rosen and Ian Jarrett
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