Brazil suspended $324 million contract with Bharat Biotech for 20 million doses of the Covid-19 vaccine, Covaxin, following recommendations by the country’s comptroller general. The deal was put off with Bharat Biotech for 20 million Covaxin doses amid an ongoing investigation into alleged irregularities & corruption. Brazil’s Health Minister Marcelo Queiroga tweeted the announcement and noted that the decision had not been made due to irregularities in the contract “but, due to compliance”.
“It is noteworthy that Brazil govt did not pay a CENT for the Covaxin vaccine,” said Queiroga, the fourth health minister to be appointed by President Jair Bolsonaro since the pandemic began.
Following allegations of bribery and corruption by a whistleblower in the health ministry, the Covaxin contract became the main focus of the parliamentary commission of inquiry (CPI), which is investigating the handling of the pandemic by the Bolsonaro-led government. Among other things, the price of vaccine doses has been a point of contention.
Questions have also been raised on why the government struck a speedy agreement with Bharat Biotech while offers from the US firm Pfizer at a lower price were ignored.
Bolsonaro, under growing pressure to explain the deal with the Indian company, said that there were no irregularities in the contract last Friday. “I am incorruptible,” he said.
According to a Reuters report, the allegations threaten Bolsonaro’s pledge of zero tolerance for corruption in his government.
Owing to the attention this scandal has received both in Brazil and internationally, the Parliamentary Commission of inquiry (CPI) and the CGU began investigating this scandal. In a preliminary eleven-page report justifying the suspension of Covaxin, the CGU notes, “Five points are listed to justify the suspension: Attempt to make advance payment, without contractual provision; possible payment through a company not a signatory to the contract; non-compliance with contractual deadlines; non-justification of price; and breach of contract by Bharat/Precisa as reported by ministry of health.” The committee formed to investigate the irregularities in the contract seems to blame Bharat Biotech, its offshore partner and its Brazilian representative in the report and not the Brazilian government, reported CNN Brasil.
Bharat Biotech corroborated Bolsonaro’s statement that neither have they received any payment from Brazil nor have they exported any doses to the country, yet. Denying any foul play in their deal, they clarified that they ask for advance payments against beginning the supply of doses from each country after the respective regulatory bodies have given approval to the vaccine. They said they have received advance payments from other countries. Furthermore, defending the role of Madison Biotech, Bharat Biotech in its statement affirmed that the company was founded by Dr. Krishna Ella, Founder- Director of Bharat Biotech, in 2020 in Singapore. This company, according to the statement, was founded for external research and development as well as sales and marketing of vaccines.
In April, when asked about Anvisa’s report about GMPs, Bharat Biotech MD Krishna Ella said it was a product of Brazilian “nationalism”, and a desire to keep an Indian vaccine out of the country.
“Each country wants to defame the other countries and their vaccine strategies. It’s a global phenomenon. We don’t have to worry about it,” he said in an interview with NDTV. On 25 May, Bharat Biotech filed a new request to the Brazilian authorities for certification.
It got Emergency Use Approval from Anvisa on 4 June, privy to certain circumstances. First, that Brazil would receive four million doses of Covaxin after which Anvisa would analyse the data and assess the next quantities to be imported.
Bharat Biotech has also faced scrutiny within India. In December 2020, it applied for regulatory approval for Covaxin even though it had no efficacy data.
There was also criticism when the Drugs Controller General of India (DCGI) the apex drug authority in India gave Covaxin an accelerated approval on 3 January 2021. The phase 3 human clinical trials had begun in mid-November 2020 and results for the final phase were only announced in March 2021. The pharma firm also faced backlash when it said Covaxin had an efficacy of 81% but in April, updated data showed it had 78% efficacy. So far, Brazil has registered a total of 1,86,22,304 cases and 5,20,189 deaths.
