Brazil will suspend the $ 324 million contract for Covaxin from Bharat Biotech who has a President who mired by Jair Bolsonaro on allegations of irregularities, the Minister of Health said on Tuesday, even when Indian drug makers insisted that he had not received payment in advance.
The agreement to buy 20 million doses of Covid-19 vaccine has become a headache for Bolsonaro after the reporter of go public with alleged irregularities.
A health ministry official said he told the president about his concern.
Bolsonaro, whose popularity has faded when the Brazilian victims climbed past 500,000, has denied mistakes, by saying on Monday, he did not know any irregularities.
Health Minister Marcelo Queiroga said that at his team’s press conference will investigate the allegations during suspension.
“According to the Introduction Analysis of the CGU (Federal Comtroller), there is no deviation in the contract but, for compliance, the Ministry of Health chose to suspend the contract,” the ministry said in a statement.
The contract was also evaluated by the Directorate of Integrity of the Ministry of Health, which will conduct an administrative investigation.
The Brazilian Federal Prosecutor has opened an investigation, quoting a relatively high price of around $ 15 doses, fast talks, and pending regulatory approval as a red flag.
In a statement, Bharat Biotech said it had followed a “step-by-step” approach for the approval of the regulatory and the supply of the vaccine supply in Brazil, and had not received payment of down payments from the Ministry of Health.
This adds that Covaxin prices have been set between $ 15 and $ 20 doses for supplies to the government outside India.
This agreement was also investigated by the Senate panel who investigated the handling of Brazilian pandemics.
One of the leading opposition senators in the panel, Randolfe Rodrigues, filed a formal criminal complaint against Bolsonaro with the Supreme Court on Monday.
He asked the court to investigate why Bolsonaro “did not take any action after being told about the existence of a giant corruption scheme in the Ministry of Health”.
On February 26, Bharat Biotech Ltd has signed an agreement with the Brazilian government for a supply of 20 million covaxin doses during the second and third quarter 2021.
Previously, the Brazilian National Health Supervisory Agency, Anvisa, has been denied permission to import Kovaxin under the authorization of emergency use After the authorities found that Indian factories where Jab was made did not meet the requirements of good manufacturing practices.
However, Anvisa on June 5 gave permission to the proposal to import Covaxin to the South American country, with several conditions.
EUA was given on June 4.