The UK’s Serious Fraud Office is launching an investigation that GlaxoSmithKline, AstraZeneca and Eli Lilly paid bribes to Saddam Hussein’s regime in hopes of winning contracts to supply medicines.

This is potentially serious stuff. “The director of the SFO has opened an investigation centred on alleged breaches of sanctions in respect of the UN oil-for-food programme,” according to The Guardian, which notes that investigators can order companies to disclose documentation and call witnesses for questioning. Ultimately, the SFO could launch criminal prosecutions.”

A UN report urged by former US Federal Reserve chairman Paul Volcker, which was released in October 2005, accused 2,200 companies from 40 countries of working with Saddam’s regime to bilk the oil-for-food program of $1.8 billion.

Citing the report, GlaxoSmithKline allegedly paid $1 million in kickbacks to win an $11.9 million contract. AstraZeneca allegedly paid $162,000 to win $2.9 million in contracts. And Lilly allegdly paid $343,000 in bribes to win $3.2 million in contracts. All three drugmakers strenuously denied doing anything unethical or illegal.

So were these booked as marketing expenses or what?

[tags]AstraZeneca, Eli Lilly, GlaxoSmithKline, Saddam Hussein[/tags]