Shanghai closes travel agency over GSK case

Updated: 2013-07-19 11:30


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SHANGHAI - A travel agency in East China's Shanghai municipality has been temporarily closed in order to allow a probe into its role in suspected bribery and tax-related violations committed by employees of multinational pharmaceutical company GlaxoSmithKline (GSK).

The Shanghai Linjiang International Travel Agency is suspected of participating in illegal activity involving a large sum of money, according to the Shanghai Municipal Tourism Administration.

Police and tourism authorities are investigating the travel company.

The Ministry of Public Security announced last week that some senior executives from GSK China are being investigated for suspected bribery and tax-related violations.

The suspects are believed to have offered large bribes to government officials, medical industry associations and foundations, hospitals and doctors in order to expand the company's market in China and raise the price of the company's medicine.

Most of the bribes are believed to have been given through travel agencies.