UK executive ordered to stay in China

The British finance director for GlaxoSmithKline in China has been banned from leaving the country while authorities there investigate alleged bribery.

Steve Nechelput is continuing to work in his role for the UK drug manufacturer in China.

Chinese police have detained four GSK employees on suspicion of paying bribes to doctors, hospitals and others to encourage them to prescribe the company’s medications. Police said the employees moved up to three billion yuan (£321 million) through travel agencies and consulting firms to hide the source of bribes.

The official Xinhua News Agency said the scheme appeared to be aimed at evading GSK’s internal controls. The company has said it opposes bribery and was co-operating with the investigation.

Mr Nechelput has not been questioned or arrested, GSK said. The travel restriction was imposed at the end of last month but he can travel freely within China.

A spokesman for the UK Consulate in Shanghai said its officials were in close contact with GSK regarding Mr Nechelput, who is based in the city.

The new Chinese leadership that took power in November has promised to rein in the costs of medicine and medical care.

A commerce ministry spokesman warned yesterday that Chinese and foreign drug manufacturers would face “legal sanctions” for misconduct.