UK corporates face oil for food questions

Glaxo among list facing allegations from independent enquiry's report

Written by Keith Nuthall

Over a dozen British companies paid kickbacks to Saddam Hussein's regime as part of the United Nations' Oil for Food programme, the independent inquiry into the scandal has found.

GlaxoSmithKline is one of 14 British companies to face allegations from Paul Volcker, who led the investigation, with two subsidiaries of the blue-chip pharmaceuticals company implicated.

Advertisement

Glaxo Smithkline Walls House is alleged to have paid $834,390 (£468,000) in kickbacks to secure $9.1m worth of business selling ‘drugs, medicine, purinethol’; while Glaxo Wellcome Export Ltd is accused of paying $257,596 for $2.8m worth of medicines contracts.

The companies did not comment to Volcker’s investigators.

Oil company Sinochem International Oil London Co is also alleged to have paid a $6m surcharge and Marbel Resources Ltd $3m.

The Volcker committee said Iraq generally demanded kickbacks of around 10%. These payments 'were disguised by various subterfuges' not disclosed 'by Iraq or the participating contractors.'

The bribes netted Iraq’s former regime more than $1.5bn prior to being toppled in the US-led 2003 invasion. In all, 2,200 companies are accused of making illicit payments.

Tags:

  • Have your say
  • Send to a friend
  • Share
  • Print

Comments

Also read

White papers

Related jobs

More Accounting jobs

Spotlight

The Top 50 +50 survey 2009

All the news, views and analysis on our 2009 Top...

Elizabeth Rumsey, Virgin Galactic's FD

Profile: Elizabeth Rumsey, Virgin Galactic's FD

While Richard Branson and his Virgin Galactic team chase the...

How To guides

The archive of Accountancy Age's How To guides

Find your next job

Find your next job
Salary Checker

Job of the week

More finance jobs

Newsletters

Sign up here for the very latest news delivered to your inbox. Choose from the following options:

Your next job

Have your say

Should chancellor Alistair Darling lose his job for claiming for tax advice?
Yes
No

Advertisement

Search white papers

Search white papers

Advertisement

Advertisement