Sex tape adds to GSK China scandal

GSK logo The British pharma giant is facing an investigation in China over bribery allegations

Related Stories

GlaxoSmithKline (GSK) has confirmed the existence of a sex tape of its former head in China, the latest twist in its corruption scandal in the country.

The secretly-filmed video of Mark Reilly and his Chinese girlfriend was emailed to several senior executives of the British firm in March last year.

Mr Reilly has been accused of ordering staff to bribe hospital officials to use GSK products.

GSK said it was continuing to co-operate with the Chinese authorities.

"The issues relating to our China business are very difficult and complicated," the firm said in a statement.

The revelation has added to the corruption scandal surrounding GSK in China, which has unravelled over the past year.

Internal investigation?

The Sunday Times reported that GSK had authorised Mr Reilly to hire Peter Humphrey, a British investigator based in China, to look into the origin of the video.

However, Mr Humphrey could not establish who planted the camera in Mr Reilly's bedroom, the two reports claimed.

Mr Humphrey and his American wife, Yu Yingzeng, were arrested by Chinese authorities in August last year.

According to China's state media, the couple have been accused of selling personal information of people to clients through research companies.

Chinese authorities launched an investigation into GSK in July last year over bribery allegations and detained four Chinese GSK executives.

When the investigation first began, the Chinese operation of GSK was accused by the Chinese authorities of using travel agencies and consultancies to pay 3bn yuan ($489m; £323m) in bribes since 2007.

GSK has previously apologised for employees in China apparently acting outside of its internal controls, but has denied that the sums of money were anything like as high as those alleged to have been paid.

The pharmaceutical giant is also facing a criminal investigation into similar allegations in Poland.

In May, UK's Serious Fraud Office (SFO) said it would investigate GSK's "commercial practices". At the time, GSK refused to comment on whether the SFO's criminal investigation was connected to any specific incident.

More on This Story

Related Stories

More Business stories

RSS

BBC Business Live

  1.  
    PARIS MOTOR SHOW 06:07: Radio 5 live

    Jurgen Stackman, chairman of carmaker Seat is on Radio 5 live. Ten years ago electric vehicles were seen as the future, so what went wrong? Industry watchers were very optimistic about the speed of people picking them up, he says. Electric cars still have mileage and range limitations, he says. Families with one car don't want to rely on an electric car, he adds.

     
  2.  
    US SHARES SLIDE 06:00: BBC World News
    New York Stock Exchange

    There were sharp losses for US shares overnight. On World Business Report, Michael Hewson, chief analyst at CMC Markets reminds us that the US market has had a good run recently. But there is not much to be positive about at the moment, he says. The recent economic data from China and Japan has not been great. Traders are also preparing for higher interest rates in the US, Mr Hewson says.

     
  3.  
    06:00: Howard Mustoe Business reporter

    Good morning. You can get in touch via email bizlivepage@bbc.co.uk and on twitter @BBCBusiness

     
  4.  
    06:00: Ben Morris Business Reporter

    There were sharp losses for US shares overnight, so it will be interesting to see how Europe responds to that later. Plus we'll have reports from the Paris Motor Show. It should be a fun morning, so stay with us.

     

Features

From BBC Capital

Programmes

  • European Union's anti-terrorism chief Gilles de KerchoveHARDtalk Watch

    Anti-terrorism chief Gilles de Kerchove on the threat from returning Islamic State fighters

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.