GlaxoSmithKline, the multinational pharmaceutical giant, reported a 10% drop in its first quarter sales in 2014, according to the International Business Times (30 April 2014).
Their sales in China were badly affected after the Chinese Ministry of Public Security, alleged that GSK paid over £307million to Chinese doctors in bribes, through 700 agencies.
The Chinese investigation continues despite several arrests of GSK executives, some of whom have apparently admitted to bribery and tax offences.
Other international investigations have followed concerning similar allegations in Poland and Iraq, apparently breaching both the FCPA and the Bribery Act 2010.
Avon has settled with a Deferred Prosecution Agreement (DPA) as a result of FCPA violations in connection with Chinese bribery allegations.
The terms of the DPA, which has yet to be signed off, state that Avon will pay $68million to the DoJ and $67million to the SEC. The DPA will be of 3 years duration; there will be a compliance monitor in place for 18 months and then Avon will self-monitor for the remaining 18 months.
The SFO has opened an investigation into alleged Ukrainian corruption and money laundering, and has frozen $23million in assets held in the UK.
This follows a European-wide investigation which has seen assets frozen in Europe, allegedly belonging to 22 people suspected of misappropriating Ukrainian state assets.
The SFO has been under increasing pressure from the OECD to elevate its anti-corruption drive, amid criticisms that it has done little since the Bribery Act has come into force.
It has also sent officers to Paris to question senior executives of Alstom as part of their 5 year investigation into the company.
Hewlett Packard has agreed to pay $108million to the SEC in order to settle FCPA violations concerning allegations of bribery in Russia, Mexico and Poland.
The Americans have extended FCPA investigations in order to scrutinise recruitment practices following the ‘Chinese Princelings’ scandal. They are focusing on oil, gas and telecoms industries.
Mobile chipmaker, Qualcomm, has admitted that it may be subject to a FCPA investigation concerning ‘special hiring considerations’ given to those associated with state-owned companies and agencies in China.
Our specialist bribery/corruption and financial compliance lawyers will publish regular bulletins on topical issues in this field.
If you are facing an investigation (whether criminal or regulatory) or have a compliance issue, contact us on 020 7387 2032 or complete our online enquiry form here.
