The subject of indemnification of pharmaceutical companies against several potential adverse side-effects of the COVID-19 vaccines has been controversial all over the world for some time, even before the COVID-19 pandemic.
FILE: The University of Oxford and drug manufacturer AstraZeneca have developed a COVID-19 vaccine. Picture: AFP.
JOHANNESBURG – The National Treasury said that it was striving to ensure that indemnity requirements during the acquisition of COVID-19 vaccines did not “prove to be an obstacle that inhibits” procurement of the vital doses.
The department has released a fact sheet detailing how it is dealing with the contentious issues relating to the indemnity, saying that it was also working on the implementation of appropriate measures to obtain vaccines.
This follows a report by the Daily Maverick that quoted Department of Health officials saying that Treasury’s hard-line approach on the indemnification of pharmaceutical companies was potentially putting the lives of South Africans at risk.
The subject of indemnification of pharmaceutical companies against several potential adverse side-effects of the COVID-19 vaccines has been controversial all over the world for some time, even before the COVID-19 pandemic.
However, with squeezed timelines, National Treasury has had to strike a balance between careful consideration of potential liability on the part of government for unforeseen events and protecting the health of the population.
It has also explained that it has already granted concurrence to the Health Department’s agreements during the acquisition of vaccines from two companies; Serum Institute and Pfizer as required by the Public Finance Management Act.
Furthermore, Treasury said that while the PFMA did not provide for the suspension of indemnification requirements – it could be granted on certain agreements as was the case during the 2010 World Cup.
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