Brazil to suspend vaccine deal with India as graft allegations probed

Brazilian 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.

June 30, 2021 02:57 am | Updated December 02, 2021 10:46 pm IST - RIO DE JANEIRO

Brazilian President Jair Bolsonaro.

Brazilian President Jair Bolsonaro.

Brazil will suspend a $324 million Indian vaccine contract that has mired President Jair Bolsonaro in accusations of irregularities , the health minister said on Tuesday, following the guidance of the federal comptroller, the CGU.

The deal to buy 20 million doses of Bharat Biotech's Covaxin shot has become a headache for Mr. Bolsonaro after whistleblowers went public with concerns over irregularities. One Health Ministry official said he personally alerted the president about this concerns.

Brazil's Health Minister Marcelo Queiroga said at a news conference his team would probe the allegations while the suspension was ongoing.

 

"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," the ministry said in a statement.

Earlier on Thursday, Reuters reported a CNN Brasil report that the ministry had decided to cancel the contract.

Brazilian 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 contract is also being probed by a Senate panel investigating the government's handling of the pandemic.

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