Brazil's Bolsonaro Under Fire For Nixed $324-Million Covaxin Deal With Indian Firm

Trouble mounted for Brazilian President Jair Bolsonaro after the Health Ministry called off a $324-million COVID-19 vaccine deal that was called out for massive corruption involving the highest offices.

Bolsonaro, already under pressure for his botched handling of the pandemic, went on a damage-control mode and fired a health official Wednesday who allegedly asked for a bribe in the deal with Indian firm Bharat Biotech, Reuters reported. A Senate panel and federal authorities have launched separate probes into the deal.

The pandemic has claimed over 500,000 lives in Brazil, the second-biggest death toll after the United States.

Health Minister Marcelo Queiroga said the graft allegations would be probed. "According to the preliminary analysis of the federal Comptroller General of the Union (CGU), there are no irregularities in the contract, but for compliance, the health ministry chose to suspend the contract," the ministry said.

Though Bolsonaro and Queiroga have denied any wrongdoing, Brazilian federal prosecutors have already initiated a probe into the contract, raising concerns about comparatively higher prices of about $15 a dose, hasty negotiations and pending regulatory approvals, Reuters reported.

The contract was signed in February for 20 million Covaxin doses. Brazil agreed to pay about $320 million, or $15 per dose, to Precisa Medicamentos, the local representative of Bharat Biotech. The per-dose price was reportedly the highest Brazil had agreed to pay for any vaccine.

Irregularities came to light when the contract landed on the desk of a Health Ministry official. Luis Ricardo Miranda, head of medical imports at the Brazilian health ministry, claimed he felt there was something fishy in the deal as an invoice sought a $45 million upfront payment to a Singapore-based company.

Miranda said the contract made no mention of the Singapore firm and his suspicions grew stronger after he was pressured to approve the deal. He claimed he brought the issue to the attention of Bolsonaro on March 20, calling it a "dirty deal."

The accusations have inflicted a blow on Bolsonaro, who is seeking re-election in 2022. The allegations have added impetus to the opposition's move to impeach him.

Meanwhile, Bharat Biotech said it had not received advance payments from the health ministry. The company spokesperson said in a statement that a "step-by-step approach was followed towards contracts and regulatory approvals."

As for the pricing, the company said it "has been clearly established between $15-20 per dose for supplies to Governments outside India."

Covaxin, developed by Bharat Biotech in collaboration with the Indian Council of Medical Research, is said to be effective in neutralizing both Alpha and Delta variants of Coronavirus. With an efficacy rate of 81%, the vaccine was approved in India in January, even before phase-3 trials, drawing criticism.

So far, only Iran, the Philippines, Mauritius, Mexico, Nepal, Guyana, Paraguay and Zimbabwe have approved Covaxin. Bharat Biotech expects to get the WHO approval soon.