BUSINESS MAVERICK: Treasury holding up vaccine contracts over indemnification of pharmaceutical companies

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National Treasury is taking a hard line on the indemnification of pharmaceutical companies against vaccine “adverse events”, potentially putting the lives of huge numbers of South Africans at risk, frustrating the Department of Health (DOH) and complicating the negotiations with vaccine producers.

The indemnification of pharmaceutical companies against “serious adverse events” during the vaccination process is internationally regarded as a vital precursor to the widespread roll-out of vaccines and forms part of all the current existing contracts.

Speaking during a briefing with the SA National Editors’ Forum, Treasury Director-General Dondo Mogajane complained about “onerous clauses” the pharmaceutical companies wanted health officials to sign. But from the perspective of the DOH, the Covid-19 crisis is a different situation entirely, and it considers Treasury’s attitude to be a kind of absurd dunderheadedness which is putting hundreds of thousands of lives at risk.

It’s also hypocritical since SA did suspend the Public Finance Management Act’s indemnity requirements during the Soccer World Cup, indemnifying the Fédération Internationale de Football Association from a wide array of potential risks. The comparison plays badly for SA, which is now apparently in the invidious position of being quite happy to suspend the PFMA for soccer games but is not prepared to do so to save the lives of thousands of its citizens.

 

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