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John R. Fischer, Senior Reporter | May 21, 2019
Philips reportedly disclosed the case in July 2018 in its semiannual report and later in its 2018 annual report.
“Last year, we were informed by the Brazilian authorities that Philips in Brazil and other companies in the country (approximately 30) are subjects of an investigation into the medical device industry in Brazil. We believe that any allegation against Philips relates to a period that was prior to 2011. Philips takes this matter very seriously and we are cooperating with the Brazilian authorities,” Steve Klink, head of Philips Group Press Office told HCB News. He added that “Philips has also received inquiries from certain US authorities in respect of this matter. It is not uncommon for U.S. authorities to show an interest in these matters, and it is too early to draw any conclusions. We take these inquiries seriously, and we are reviewing them.”
A GE spokesperson told HCB News that the allegations refer to the activities of Daurio Speranzini Jr., the former CEO of GE for Brazil who
was arrested last July as part of a probe into a 20-year-old alleged healthcare racket that took place when he was head of Philips Medical Systems in Brazil from 2004 to 2010. It is not implicated in the charges against him.
“The allegations refer to a time period when Mr. Speranzini worked for a company unrelated to GE,” said the spokesperson. “Based on our review, we believe there is no evidence of misconduct or any indication of GE being part of this cartel. We are committed to integrity, compliance and the rule of law in Brazil and every other country in which we do business.”
The largest of any investigation so far is Operation Car Wash, involving money laundering and acts of corruption by Brazilian state-run oil company Petrobras. The scandal has since ruined a number of political leaders and businesses across Latin America, including Brazilian construction company Odebrecht SA, which was hit in 2016 by the U.S. and Brazil jointly with a $3.5 billion penalty, the largest-ever compliance penalty in the world.
Johnson & Johnson has yet to respond for comment on the allegations.
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Wayne Webster
I can't believe the OEM's would do such a thing!
May 26, 2019 12:07
Yes I can. And, the next time MITA, the OEM's trade association, or the OEM's directly claim that third parties (servicers and sellers of older equipment) are compromising patient safety due to poor non OEM work, remember OEM's will say and do anything to get business.
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