Unshaven and dressed in a blue and grey striped T-shirt, Liang Hong looked nondescript on screen. But his words, broadcast on Chinese television last July, were explosive. He told two policemen how, as a vice-president of GlaxoSmithKline, he had channelled concealed payments via a local travel agency.
On the same day, Gao Feng, a leading fraud investigator, held a highly unusual briefing for foreign journalists at which he likened the British-based pharmaceutical company to the “big boss” in a “criminal partnership”, paying up to Rmb3bn ($500m) to officials and doctors. He claimed it used 700 travel agencies, some in turn offering money and “sex bribery” to GSK executives to win their favour.
This week Sir Andrew Witty, GSK’s chief executive, unveiled worldwide measures aimed at removing incentives to sales staff that encouraged excessive marketing, strengthening transparency and cutting funding to doctors. The moves follow both the China scandal and a record $3bn fine from US regulators last year.