|China arrests British consultant Humphrey amid inquiry into UK drug maker GlaxoSmithKline
China has formally arrested a British consultant detained since mid-July amid investigations into massive bribery allegations against UK pharma company GlaxoSmithKline.
Peter Humphrey, who co-founded ChinaWhys, a business risk advisory firm with his wife Yu Yingzeng was arrested on Monday in Shanghai, media reports in London said.
The British embassy in Beijing and his family confirmed the news, the Guardian reported.
Humphrey worked as a journalist for Reuters in the 1980s and 90s. The ChinaWhys website says he has been a risk management specialist and corporate detective for 14 years.
GSK has been accused by China's Public Security Ministry of paying bribes of up to 3 billion yuan through travel agencies and consulting firms to doctors and officials in China.
The British company is known among consumers for products such as Panadol, Beechams and Coldrex as well as Cervarix.
Last month, a state newspaper called GlaxoSmithKline, “dirty and devious, accusing it of inflating prices. An editorial in the China Daily newspaper said the company passed on the cost of hundreds of millions of dollars in bribes directly to consumers.
“The bribery case involving GlaxoSmithKline... points to another conduit that pushes up the prices of medicine,'' the editorial said.
"The money used to lubricate drug sales and prescriptions contributes 20 to 30 percent to the prices patients pay for their medicine.''