Tomahawk, WI 04/08/2014 (Basicsmedia) – British drugs maker GlaxoSmithKline plc (ADR) (NYSE:GSK) is all set to investigate bribery charges in Iraq, the company said on Sunday. These further allegations come in the wake of corruption charges that the company is already facing in China.

Center of controversy

This latest controversy centers around claims that Glaxo hired government employed pharmacists and physicians in Iraq as paid sales representatives. This was done by the company in order boost the sales of its products in the country.

A spokesman from GlaxoSmithKline plc (ADR) (NYSE:GSK) reported that the company was probing the allegations brought up against them, regarding the use of improper methods in Iraq. He also mentioned that the company would follow a zero tolerance policy against those who conduct themselves in an unethical manner.

The investigations are, therefore ongoing at the moment.

The spokesman also brought to notice that GSK currently employs less than 60 people in their pharma operations in Iraq, and that the allegations only relate to a small section of people.

The Chinese issue

Britain’s biggest pharmaceuticals company, GSK was earlier accused by Chinese officials to providing up to 3 billion Yuan ($483 million) to doctors and officials, in order to encourage them to promote the company’s medicines.

Following this, GSK’s sales in China took a plunge in the wake of such a scandal. The company, which had a staff of around 7000 in China, has gone ahead and dismissed many of its employees, besides withholding the bonuses of many others. This was to done remove such wrongdoings in the future.

The company had earlier described its corrupt practices in China, as ‘shameful’ and has been taking stringent measures since then.

These recent allegations were first reported in the Wall Street Journal, which said that after reviewing emails of a person familiar with GlaxoSmithKline plc (ADR) (NYSE:GSK)’s Middle-East operations, cited corrupt practices from last year and 2012.

One such email said that these practices violated both the British Bribery Act and also the U.S. Foreign Corrupt Practices Act, which prohibit bribing of foreign officials.

Many major drug making companies have faced probes into their overseas practices, of late, under the FCPA.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.