UK's fraud probe of AZ and GSK deals in Iraq

The UK's Serious Fraud Office has demanded the release into its custody of confidential documents relating to trade in Iraq before 2003 from the UK's two major drugmakers, GlaxoSmithKline and the Anglo-Swedish AstraZeneca. The two firms, plus Eli Lilly's UK subsidiary, are alleged to be implicated in the discredited Oil for Food Program operated by the United Nations, which was exposed by the 2005 Paul Volcker Report as rife with bribes and kickbacks, the UK's Daily Telegraph reports.

The Volcker enquiry claimed that GSK and AstraZeneca paid bribes of, respectively, $1.0 million and $162,000, to secure orders from Iraq's health authorities. GSK allegedly gained nine drug contracts valued at $11.9 million, whereas AstraZeneca supposedly secured three worth $2.9 million. Both firms "vehemently" deny the claims. In a statement, GSK noted the "considerable lengths" taken to impose anti-corruption measures when dealing with intermediaries.

The SFO has secured UK government funding of L22.0 million ($43.9 million) to carry out its investigation into allegations raised by the Volcker Report. The agency, which is in contact with US counterparts at the federal Department of Justice, has the authority to prosecute any individuals it considers to be involved in any corruption relating to the UN Food for Oil program.