Brazil suspends Covaxin order over graft allegations

The Brazilian government on Wednesday announced suspension a $324 million Indian vaccine Covaxin contract following allegations of irregularities in the deal. "By recommendation of @CGUonline, we decided to temporarily suspend the Covaxin contract. According to CGU's preliminary analysis, there are no irregularities in the contract, but, due to compliance, the @minsaude opted to suspend the contract for further analysis," Brazil Health Minister Marcelo Queiroga tweeted. "It is noteworthy that the @govbr did not pay ANY CENT for the Covaxin vaccine. The measure does not compromise the pace of the vaccination campaign against #Covid19 in Brazil, since there is no approval from Anvisa for emergency or definitive use of the immunizing agent," Queiroga said in another tweet.

The deal to buy 20 million doses of Bharat Biotech's Covaxin shot has become a headache for president Jair Bolsonaro after whistleblowers went public with concerns over irregularities. 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.

Meanwhile, Bharat Biotech today emphatically denied any wrongdoing amid a huge controversy in Brazil over a $324 million contract for Covaxin shots, now suspended over allegations of irregularities.In a statement, Bharat Biotech said it had followed a "step-by-step" approach towards contracts and regulatory approvals with Brazil.