Sources inform ''Globes'' that Boston Scientific Corp. (NYSE:BSX) has fired on the spot the manager of the cardiology unit at the company’s branch in Israel, Yair Yahav, on suspicion that he was involved in breaking the company’s ethical code.
The sources added that Boston Scientific has restricted the signatory rights of Boston Scientific Israel general manager Efi Shnaidman to $1,000, in order to freeze the situation until a more thorough investigation of the acts is carried out. A Boston Scientific spokesman confirmed the report that the executive had been fired, but claimed that there the general manager was not under suspicion, and that his signatory rights had not been restricted.
The full details of the ethical breaches attributed to Yahav and Shnaidman are not known, only that they concern excessive gifts to doctors and personal benefits and donations to hospital departments in ways that violated Boston Scientific’s ethical code.
The spokesman claimed that Yahav was accused of violating the company’s ethical code, but said the violations were not criminal in nature, but could be described “overly aggressive marketing”.
On Sunday, Boston Scientific’s legal department called Yahav and told him to leave his post immediately and leave all personal equipment behind in his office. Yahav’s access to his e-mail account was blocked. Yesterday, he went to his office and accused a co-worker of framing him.
Yahav and Shnaidman are old friends (through their wives who jointly run a business), and it was Shnaidman who hired Yahav for Boston Scientific Israel. Some former employees claim that Shnaidman is as much involved in breaking the company’s ethical code as Yahav, but, as mentioned, the company denies this, saying, “Shnaidman’s involvement is limited to the fact that Yahav worked for him.”
Shnaidman and Yahav were unavailable for comment.
Published by Globes [online], Israel business news - www.globes.co.il - on July 27, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006