Brazil Pulls Out of US$324 Million Covaxin Contract Amid Cries of Corruption
Brazil will suspend its US$324 million contract for India’s Covaxin COVID-19 vaccine upon the recommendation of Brazil’s Comptroller General office (CGU), Health Minister Marcelo Queiroga said Tuesday.
“According to preliminary analyses, there are no irregularities in the contract but, for compliance, the health ministry opted to suspend the contract for further analysis,” Queiroga tweeted.
The CGU, Brazil’s audit branch, will decide whether to terminate the contract after a complete investigation.
Queiroga said the government has not yet paid for the Covaxin vaccine and that the measure will not compromise the pace of vaccine distribution in Brazil.
The Covaxin saga has generated public ire and distrust in the government’s vaccination response. Covaxin is not only more expensive than BioNTech Pfizer but is also still unapproved by the World Health Organization (WHO) — leaving many to question why the Bolsonaro administration has pursued this particular shot while cheaper, authorized options were on the market.
A CGU evaluation of the Covaxin contract obtained by CNN Brasil on Tuesday lists several reasons to be suspicious of the deal, including that the government attempted to make an advance payment outside of the terms laid out in the contract and may have also paid through a third-party company not included in the contract. According to the CGU report, Bharat Biotech also did not meet deadlines for vaccine delivery and did not include a pricing justification in the contract.
Allegations of corruption and graft within the Bolsonaro administration have been mounting all week.
The contract’s suspension arrives shortly after Monday’s news that Senator Randolfe Rodrigues filed a criminal complaint against Bolsonaro with the country’s highest court, urging an investigation into potential graft in COVID-19 vaccine purchases.
Brazilian newspaper Folha de S. Paulo also reported on Tuesday that Ministry of Health logistics chief Roberto Ferreira Dias had attempted to negotiate a bribe of a dollar per dose of AstraZeneca’s vaccine to a medical supply company representative. He was dismissed from his post that same day.
The same deal is currently being investigated by Brazil’s federal prosecutor’s office after prosecutors noted the high price per dose and that ministry officials apparently disregarded a history of alleged irregular government contracts with Bharat Biotech representatives.
Jair Bolsonaro, the president of Brazil, has defiantly rejected measures to control viral spread and continues to deny calls of graft and corruption.
https://www.occrp.org/en/daily/14739-brazil-pulls-out-of-us-324-million-covaxin-contract-amid-cries-of-corruption