19 Sep 2013

Formula firm probes bribery claims

2:31 pm on 19 September 2013

A subsidiary of French company Danone, Dumex Baby Food, is investigating claims its staff paid bribes to Chinese hospital workers to drive up sales of its baby formula.

A report by Chinese state television CCTV says hospital staff in Tianjin were encouraged to give newborns formula before their mothers' breast-milk, so they developed a taste for the product.

The report included an unnamed nurse saying nurses were offered about $10 for each can of baby formula they recommended to new parents.

In a statement, Dumex said it is "extremely shocked" by the report and is investigating the allegations, CNN reports.

The allegations come as China widens its probe into corruption in the healthcare industry, with two government agencies now investigating possible bribery and fraud in the provision of medical drugs and services.