Sex tape starring former executive worsens GSK China corruption scandal

British pharmaceuticals giant GlaxoSmithKline (GSK) has confirmed one of its former executives does appear in a sex tape – news that places further pressure on a firm already battling allegations of corruption.

A video of the former head of the business’s Chinese operations, Mark Reilly, was emailed to senior executives at GSK. It contained footage of Reilly and his Chinese girlfriend.

Reilly was recently accused of bribing hospital officials to purchase GSK products – which have led to four Chinese GSK executives being arrested and an ongoing international probe into the firm’s operations.

Similar accusations are now being broadcast in Iraq, Poland, Jordan and the Lebanon. The bribery of doctors to prescribe GSK drugs are among the accusations.

The discovery of the video did prompt the hiring of a private investigator, Peter Humphrey, who has now been arrested and accused by Chinese state media, alongside his wife, of selling personal information about clients.

The investigation so far has led to the Chinese accusing GSK of bribing officials through travel agencies and consultancies – spending a total of 3 billion yuan (£323m) on bribes alone.

GSK deny this to be the amount, suggesting it is nowhere near as high.

GSK sales statistics for China fell by 61% last year as the allegations began to gain momentum, apologising for the activities of Chinese employees who were acting outside of its code of conduct.

Earlier this year in May, the Serious Fraud Office (SFO) declared it would be investigating GSK over the bribery accusations the company faces from all over the world.

Photo source: Ian Wilson via Flickr 

Further reading:

GlaxoSmithKline China sales take hit following bribery scandal

GSK faces criminal investigation by fraud office amid bribing scandals

We’ll invest in GlaxoSmithKline for as long as it’s 100% committed to cleaning up its act

Responsible investors react to GlaxoSmithKline bribery allegations