British Embassy confirms assistance given to ex-GSK head

Leaked sex tape may be linked to graft probe: report

The British Embassy in Beijing is in regular contact with Mark Reilly, the former manager at the center of the GlaxoSmithKline (GSK) bribery scandal, confirming that Reilly remains in China after being removed from his company post.

"We are keeping in regular contact with Mr Reilly and are providing consular assistance," the British Embassy in Beijing told the Global Times in an e-mail on Monday. The spokesperson refused to disclose Reilly's current situation.

The response came after The Sunday Times reported that a secretly filmed sex tape involving Reilly was the trigger for the GSK corruption investigation.

The video of Reilly and his Chinese girlfriend, filmed by secret camera in his Shanghai flat, was e-mailed anonymously to board members of the firm, including chief executive Sir Andrew Witty, in March 2013, along with allegations that the company was giving kickbacks to doctors and officials to the tune of 320 million pounds ($546 million), The Financial Times reported.

The e-mail began circulating shortly before the investigation into the alleged bribery by Reilly and his subordinates began.

Reilly, general manager of GSK China since late 2012, is among 46 employees identified by Chinese police as suspects linked to "massive and systemic bribery." The Ministry of Public Security said they had closed the investigation in May.

Reilly and two other executives are also suspected of bribing Beijing and Shanghai government officials to escape the probe, the Xinhua News Agency reported.

Reilly is barred from leaving China, but is not in custody, The Financial Times said.

The cost of the bribes was transferred to Chinese customers, making the price of some GSK products in China seven times more expensive than the same products sold in other countries, Xinhua reported.

In an e-mail reply to the Global Times, GSK declined to comment on the case, stating that the investigation is still ongoing.

"The issues relating to our China business are very difficult and complicated ... We are learning lessons from this situation and we are determined to take all actions necessary as a result," said GSK.

Zhong Hongyue, a Shanghai-based medical industry consultant with Frost & Sullivan, told the Global Times he disagreed with the accusation.

"I don't think GSK's China drug prices were high compared to US drug prices," he said, believing that the case has been exaggerated by the media, and the clampdown was intended to lower the cost of drugs.

The video leak was regarded as a serious security breach by GSK. Reilly was authorized to hire British investigator Peter Humphrey to find the identity of the whistleblower in April 2013. Humphrey's investigation had focused on Vivian Shi, former head of government affairs for GSK in China, who left the company in 2012, according to The Sunday Times.

Humphrey and his American wife were arrested under charges of violating Chinese citizens' privacy in July 2013, around the same time the investigation into the company was announced.