GlaxoSmithKline has launched an internal investigation into potential violations of the Foreign Corrupt Practices Act for alleged bribery payments made to doctors in Iraq, nine months after becoming embroiled in a similar corruption probe for improper payments made in China.

GSK is investigating claims into whether some of its employees hired government-employed doctors and pharmacists in Iraq as paid sales representatives in exchange for promoting and prescribing its drugs, according to e-mails obtained by the Wall Street Journal.

GSK's board of directors and compliance department were made aware of the alleged improper payments by a person familiar with the company's Mideast operations, the WSJ reported.

In response to the allegations, GSK's head of compliance investigations stated, “We have members from legal (internal and external), compliance, corporate security, and [anti-bribery and corruption] working on this as a team with the full support of the corporate executive team and board members,” according to an e-mail obtained by the WSJ.

“In total, we employ fewer than 60 people in Iraq in our pharmaceuticals operation, and these allegations relate to a small number of individuals in the country,” Mary Anne Rhyne, GSK's director of U.S. external communications, tells Compliance Week. "However, we are investigating whether there has been any improper conduct, and these investigations are ongoing."

Rhyne adds that the company continues to make “fundamental reforms to our sales and marketing practices.” For example, the company is globally changing how its sales representatives are paid, “and we are also stopping the practice of paying doctors to speak on our behalf,” she said. “We believe these changes will eliminate any perception of conflict of interest and ensure incentives for our employees are aligned with the best interests of patients.”

More Allegations

Since July 2013, GSK also has been entangled in another corruption probe over allegations that senior management at GSK's China operations made bribery payments in the form of cash payments, lavish dinners, and all-expenses-paid trips to doctors in China in exchange for prescribing Botox. That investigation remains ongoing.

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