GE Healthcare Technologies, a spinoff of General Electric, has reported potential violations of the Foreign Corrupt Practices Act (FCPA) in its China-based operations. The disclosure was made in the company's quarterly filing with the United States Securities and Exchange Commission (SEC) on Cotober 31.
According to the filing, GE Healthcare identified "tender irregularities and other potential violations" related to its activities across multiple Chinese provinces. This marks the first instance that the company has publicly acknowledged possible FCPA violations. GE Healthcare severed ties with parent company General Electric in January, as part of General Electric's broader structural disintegration.
The company stated it commenced dialogue in 2018 with both the SEC and the Department of Justice and is in full compliance with ongoing investigations.
GE Healthcare's disclosure follows a pattern of FCPA violations by industry leaders including General Electric, Siemens, and Philips. A New York Times report in 2019 detailed pervasive corruption within the Chinese healthcare sector.
In a 2016 case, Wu Dagong, a hospital administrator, accepted a bribe exceeding $1 million from two GE sales representatives for a CT scanner transaction valued at $4 million. Mr. Wu also received a $220,000 bribe from a GE sales contractor, culminating in a 15-year sentence.
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