on alleged hold-ups in the signing of vaccine contracts over the issue of the indemnification of pharmaceutical companies, saying it was “seeking to ensure that the issue of indemnity will not prove to be an obstacle that ultimately inhibits the vital procurement of vaccines”.
Treasury Director-General Dondo Mogajane has previously complained about “onerous clauses” the pharmaceutical companies wanted health officials to sign, an approach that some Department of Health sources consider frustrating and irrational in the circumstances. Normally, governments would be reluctant to take on this risk, but in the case of the coronavirus epidemic, the need for the vaccines is so intense and the number of vaccines required is so huge, that governments around the world are typically accepting this burden as the lesser of evils.
“The approach of the National Treasury and the Minister of Finance is that any proposed indemnity provision in each potential vaccine procurement agreement is assessed individually, and the Minister of Finance then assesses whether or not to give concurrence in respect of the granting of the requested indemnity in respect of that particular agreement,” the Treasury spokesman said.