Brazil to suspend $324 million Covaxin deal over ‘irregularities’ allegations

Following the recommendation of the federal comptroller, the CGU, Brazil will halt a $324 million Indian vaccine deal that has embroiled President Jair Bolsonaro in allegations of irregularities, the health minister confirmed on Tuesday.

In February, the two countries had inked a contract for the procurement of the Covaxin vaccine, with Bharat Biotech importing 20 million doses of vaccine.

The vaccination doses were never delivered to Brazil, as per CNN, since the National Health Surveillance Agency (Anvisa) refused import requests for the vaccine.

Brazilian federal prosecutors have launched an inquiry into the purchase deal, citing comparably high pricing, rapid negotiations, and pending regulatory clearances as danger signs for the February contract.

Reuters reported earlier on Thursday that the government had opted to terminate the contract, citing a CNN Brasil report.

The purchase of 20 million doses of Bharat Biotech's Covaxin jab has caused Bolsonaro headaches after whistleblowers raised suspicions about discrepancies.

During a press conference, Brazil's Health Minister Marcelo Queiroga stated that his team will investigate the claims while the suspension was in effect.

A Senate panel probing the government's response to the Covid-19 pandemic is also looking at the deal.

A ministry statement read as, "According to the preliminary analysis of the CGU, there are no irregularities in the contract but, for compliance, the Health Ministry chose to suspend the contract for a more in-depth analysis."