Greek Parliament to Vote on Prosecutions in Novartis Bribery Case
May 18 2018 - 8:31AM
Dow Jones News
By Nektaria Stamouli and Donato Paolo Mancini
ATHENS--Greece's Parliament is set to vote later on Friday on
whether or not to request the prosecution of high-profile
politicians allegedly involved in a bribery case with Swiss
pharmaceutical giant Novartis AG's (NOVN.EB).
Parliament is expected to conclude it cannot investigate the
allegations and that the file should be returned to judicial
authorities.
In Greece, Novartis is accused of bribing high-profile
politicians, public officials and thousands of doctors to boost its
sales in order to build a dominant position in the country's
health-care market and secure artificially high prices for its
products. The case is under examination by the Greek and U.S.
authorities.
Greek anticorruption prosecutors alleged that 4,500 doctors and
10 high profile politicians, including two former prime ministers,
a former head of the central bank and a European commissioner are
involved in the Novartis price-fixing scandal.
The activity occurred between 2006 and 2015 and involved 4,500
doctors as well, covering the period during which Greece was bailed
out and was living under tight scrutiny by its international
creditors. The country has slashed health-care spending to fix its
finances.
All politicians denied wrongdoing. Opposition parties accused
the government of stoking the scandal for political gain. Novartis
has said that it has been cooperating with Greek authorities and
that it will take "decisive" action if any wrongdoing is found.
The case was referred to parliament by prosecutors in February
because, under Greek law, this is the only institution that can
investigate politicians and lift their immunity if it finds
evidence of criminal activity. Prosecutors referred their
investigation to parliament this month.
Novartis is under pressure after drawing the attention of Swiss
prosecutors after disclosing last week that it had paid a total of
$1.2 million to Essential Consultants LLC, a company owned by
Michael Cohen. Mr. Cohen is U.S. President Donald Trump's personal
attorney.
Novartis said the payments were for what it called advice on
"health-care policy matters."
Novartis's chief executive Vasant Narasimhan called the move a
mistake. The company said payments could only cease in February
2018 even if the company had been determined Mr. Cohen was unable
to effectively offer advice on health-care policy, and that Mr.
Narasimhan was not involved in the deal with Mr. Cohen. Mr. Cohen
declined to comment.
In the wake of the disclosures, Novartis's top lawyer, Felix
Ehrat, said he would leave the company. Mr. Narasimhan said
Wednesday at an investor meeting in Basel that changes in top
management would be made, and that a new professional-practices
policy would be in place so employees could "ask themselves the key
questions before making a decision."
Swiss prosecutors said earlier this week they were in contact
with one another over the disclosures, but declined to say whether
charges were being considered.
Read more about Novartis's connection to Michael Cohen at
https://on.wsj.com/2k61xoQ (WSJ) or https://bit.ly/2IN3Bjl
(NewsPlus).
Write to Nektaria Stamouli at nektaria.stamouli@wsj.com and to
Donato Paolo Mancini at donatopaolo.mancini@dowjones.com
(END) Dow Jones Newswires
May 18, 2018 08:16 ET (12:16 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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