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China Raises the Stakes in the GSK Scandal

GSK’s troubles in China have just gotten even more serious. The government has formally charged Mark Reilly, former head of the company’s operations in China, of organizing and participating in a bribery scheme. This seems to have been a stronger step than people were expecting – we’ll see what happens. Reilly’s whereabouts do not seem to be clear to anyone – I would assume that he left China some time ago, but if he hasn’t, then he’s not leaving for some time to come.

11 comments on “China Raises the Stakes in the GSK Scandal”

  1. Hap says:

    China’s actions would probably be more credible if they also went after thaose who accepted bribes from GSK; after all, those officials had a duty to China and their people, and chose to betray them anyway (in the same way that insider trading people betray the company and stockholders they ostensibly work for). If that’s the case, it looks more like a shakedown for cheap drugs than a real attempt to get rid of corruption.

  2. Byrd says:

    Reilly gave a nice talk on his China strategy in 2010. Oddly, I don’t see bribery as one his “elements of success”

  3. Anon says:

    I am in agreement with @1 Hap. If China’s actions aren’t symmetrical I revert to their past behavior as an indication of their intentions.

  4. emjeff says:

    Not an GSK apologist at all, but these charges really strain a reasonable person’s credulity. I think it is a shake-down, and this may be just the thing to convince “Sir” Andrew that dealing with the Devil (Communists) gets you into trouble.

  5. Anonymous says:

    This is just another case of China making up the rules to suit itself. But since we (the West) took down our pants and let them own us, there’s diddly squat we can do about it. We showed them how to play capitalism, and they beat us at our own game.

  6. pc says:

    Judging from Xi’s actions since he took over I’ll not be surprised that they are indeed starting to clean up, and yes that’d include those who accept bribes. I’d put the odd at >50%. This will take time though.

  7. annon says:

    Sir Andy likes to look dandy. Now what Dandy Andy?

  8. annon 2 says:

    Wonder if GSK pays Reilly and gives him a safe house to hide out…..

  9. MoMo says:

    Bribery accusations in China is like handing out speeding tickets at the Indianapolis 500.

  10. Nick K says:

    According to the Times website, Mark Reilly is currently in ChangSha. His passport has been confiscated….

  11. db says:

    According to an article I read on this yesterday, Reilly was sent back to China by GSK to “cooperate in the investigation.” Knowing the Chinese tendency toward scapegoating and extreme penalties including capital punishment, I have to imagine Reilly would have tried his damndest not to go back.
    Not to say he may not be ultimately responsible for the scandal, but there must have been a lot more people involved.
    The requirements for bribery to do business in Asian countries are legendary, to the point where UK and US corporations doing business there provide annual training against it, and those countries have strong laws to prosecute the practice. For me, I’m glad I am not involved directly in doing business or government deals in China, because frankly, I don’t know how anything gets done there without bribery.

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