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Brazil to suspend Covaxin deal with Bharat Biotech over allegations of irregularities by President

Brazil had in February signed a deal with Bharat Biotech to procure 20 million doses of Covaxin for USD 324 million.

Edited by: India TV News Desk New Delhi Updated on: June 30, 2021 8:21 IST
brazil covaxin deal
Image Source : PTI (FILE)

Brazil to suspend Covaxin deal with Bharat Biotech 

Brazil has announced to suspend the Covaxin deal with Hyderabad-based laboratory Bharat Biotech. According to media reports doing the rounds, the decision was taken amid a probe into accusations of irregularities against President Jair Bolsonaro.

Brazil had in February signed a deal with Bharat Biotech to procure 20 million doses of Covaxin for USD 324 million. The South America country's Health Ministry had to pay USD 15 per vaccine dose to Precisa Medicamentos, the representative of Bharat Biotech in Brazil. 

However, the price per dose, which was higher than for other COVID-19 vaccines, drew prosecutors attention along with ministry officials apparently ignoring a history of alleged irregularities by Precisa associates in previous contracts with the government. Precisa, however, said that the vaccine price agreed to with Brazil's Health Ministry was the same as the price negotiated with 13 other countries and that the deal “followed all formal paths and was carried out transparently".

The country's Health Ministry will carry out an administrative investigation. Health Minister Marcelo Queiroga said his ministry will carry out an administrative investigation to verify all raised issues.

Federal Comptroller General (CGU) chief Wagner Rosario said that the agency will investigate the process of purchasing the vaccine. Wagner added that the deal was suspended as a simple preventive measure. The official added that a preliminary investigation was opened last week.

Anvisa, the National Health Surveillance Agency, had approved the importation of the Covaxin vaccine with restrictions on June 4. In March, the agency had rejected a request to import the vaccine, citing concerns over a lack of documentation and information on its safety.

READ MORE: Covaxin effectively neutralises both Alpha, Delta variant of Covid

READ MORE: Covaxin shows 77.8% efficacy in phase 3 trial

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