Brazil To Suspend USD 324 Million Covaxin Vaccine Deal Over Accusations Of Irregularities

The contract for the acquisition of the Covaxin vaccine was signed by the two sides in February.

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New Delhi: Brazil has decided to suspend the $324 million Covaxin contract to buy 20 million doses amid a probe into accusations of irregularities against President Jair Bolsonaro, Brazil's health minister has announced.

The contract for the acquisition of the Covaxin vaccine was signed by the two sides in February. 

While addressing a press conference, on Tuesday with Health Minister Marcelo Queiroga, the head of the Federal Comptroller General (CGU) Wagner Rosario, said that the agency will investigate the process of purchasing the vaccine.

"We suspended the deal as a simple preventive measure, since there are complaints that could not be explained well by the complainant, so we opened a preliminary investigation last week," said Rosario, as quoted by CNN Brasil. 

"We have put in a reinforced team for the verification. We hope to be very quick in this process, and we hope that in no more than 10 days we will already have an answer for this analysis," he added further.

The country's federal prosecutors have opened an investigation into the deal, citing comparatively high prices, quick talks and pending regulatory approvals as red flags for the contract signed in February.

The negotiation between the Bolsonaro government and Need Medicines -- the Brazilian pharmaceutical company that brokered the deal -- has been under the scanner. As things stand, the contract is being probed by a country's Senate panel investigating the government's handling of the pandemic.

According to CNN, the vaccine doses were never sent to Brazil, as the National Health Surveillance Agency (Anvisa) denied import requests for the vaccine.

Meanwhile, President Bolsonaro has slammed the senate committee probing the government's Covid-19 response, saying that it is aimed at undermining his administration.

Over the current situation, Bharat Biotech said that a step-by-step approach was followed towards contracts, & regulatory approvals, during an 8-month-long process. EUA received on 4th June 2021. As of Jun 29, we haven't received any advance payments nor supplied vaccines to Brazil according to ANI. 

Bharat Biotech also disclosed the price and said that the pricing of COVAXIN has been clearly established between $15-20 per dose for supplies to Governments outside India. The pricing for Brazil has also been indicated at $ 5 per dose.