THREE British pharmaceutical companies are under investigation by the Serious Fraud Office over alleged bribes paid to the former Iraqi dictator Saddam Hussein, it emerged yesterday.
Eli Lilly confirmed it had been asked to hand over documents to the SFO as part of an investigation into possible breaches of the oil-for-food sanctions that were in place against Iraq. GlaxoSmithKline and AstraZeneca also said the SFO had formally r
equested they supply documents relating to their involvement in the programme.
The investigation was triggered by a United Nations report that listed more than 2,200 companies worldwide that may have been linked to bribery or “kickbacks” to Iraq.
The programme was meant to allow Baghdad to sell limited amounts of oil to buy foreign food and medicines. But Paul Volcker, the former chairman of the US Federal Reserve, said in a 2005 report for the UN that the scheme had become corrupt as Saddam’s regime demanded cash from foreign companies in return for lucrative contracts.
“By the year 2000, the imposition of kickbacks and surcharges by the Iraqi regime brought about the emergence of front companies and international trading concerns prepared to engage in these illicit payments,” Mr Volcker said.
The SFO’s remit extends only to firms based in England, Wales and Northern Ireland.
The investigation, which may take years and is expected to cost about £22 million, is predicted to become one of the biggest undertaken by the SFO.
An Eli Lilly spokesman said: “We were asked to supply documentation in mid-December. We are compiling these documents and they will be sent to the SFO in the new year.”
GSK and AstraZeneca denied any wrongdoing and said they were co-operating fully.
The full article contains 295 words and appears in The Scotsman newspaper.
