President Duterte: Government deals on vaccine procurement are above board
President
Rodrigo Roa Duterte on Monday, January 18 assured the public that government
transactions to purchase coronavirus disease (COVID-19) vaccines are free from
corruption.
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President Rodrigo Roa Duterte talks to the people after holding a meeting with the Inter-Agency Task Force on the Emerging Infectious Diseases (IATF-EID) core members at the MalacaΓ±ang Golf (Malago) Clubhouse in MalacaΓ±ang Park, Manila on January 18, 2021. ALBERTO ALCAIN/ PRESIDENTIAL PHOTO
In
his public address on government’s COVID-19 interventions, President Duterte
vouched for the public service record of vaccine czar Carlito Galvez Jr,
explaining his negotiations with pharmaceutical companies to procure vaccines
involve no personal or direct control of money but are purely paperwork.
“All
that Galvez can do is just to come to an agreement as representative or agent
of the Republic of the Philippines. He has no say sa bayaran kung saan because
it is purely papel,” the President said of Galvez.
“Kunin
ng manufacturer ‘yan doon sa mga bangko kasi doon tayo naghiram at diretso ang
bayad galing bangko to the manufacturer. Hindi na tayo makialam diyan. And the
pricing and the paper will not be final until it is reviewed by the Secretary
of Finance kasi siya ‘yung magbayad pati ako,” he added.
President
Duterte also brushed off allegations that the government is controlling the
prices of the COVID-19 vaccine, saying manufacturers set their prices based on
the law of supply and demand.
Galvez,
for his part, said the financial institutions that will procure vaccines for
the Philippines have very stringent transparency and anti-corruption regulation
that leave no room for disadvantageous deals.
For
instance, Galvez said the Asian Development Bank (ADB) can easily spot
disadvantageous transactions considering its diverse structure.
“Malalaman
at malalaman po nila dahil kasi ‘yung deal po ng vaccine, lahat po ng deals ng
mga vaccine loans sa different countries malalaman po nila kung disadvantaged
po tayo,” Galvez said.
“Wala
po tayong hinahawakan na pera. Ang pera po, ang magbabayad po bangko. Alam po
natin ang transaction ng bangko talagang malinis po ‘yan. Kumbaga sa ano, hindi
po tayo makaka --- makaka ano, magkakaroon ng tinatawag nating corruption
because of the World Bank integrity at saka po ‘yung Asian Development Bank,”
he further said.
In
addition, the World Health Organization (WHO), UNICEF and Gavi made an
agreement with pharmaceutical companies supplying COVID-19 vaccines to maintain
a “no profit, no loss principle” despite embarking on an investment risk.
Pharmaceutical
companies have then offered discounts and cheaper alternatives to countries who
wish to purchase the vaccines, Galvez said.
“Katulad
po ng Sinovac, in-offer-an po tayo ng filling station. Pagka filling station
po, kalahati dapat ang babayaran lang natin dahil tayo po ang magfi-finish. Raw
materials dadalhin dito, tayo na po ang magfi-filling station,” he explained.
“Pangalawa
po, pagka ‘yung product kukunin mo sa manufacturer, mas mura po ‘yon kaysa
‘yung China International Fair for Trade in Services (CIFTIS). Iyong tinatawag
na CIF ‘yon pong doon po magkakaroon ng ano, ng turnover doon sa airport na po
natin. So ibig sabihin, mura po pagka tayo pa ang kukuha kasi ‘yung freight po
is 2.5 (dollars) at saka ‘yung storages. Malaki rin po iyan,” he added.
Taking
into account all the COVID-19 vaccine brands to be purchased, Galvez said the
Philippines has saved $700 million through government deals, noting that the
negotiations made by the country have been deliberate and very good.
“In fact po, maipapangako ko po sa ating mga mahal na kababayan na ang lahat ng mga negosasyon at cost, meaning almost no profit,” he said.
Galvez also noted that government’s negotiations to acquire the COVID-19 vaccines are three-tiered involving the following: a confidentiality disclosure agreement (CDA), term sheet, and supply agreement.
The
CDA is a legal part of the contract between negotiating parties that define
knowledge or information including medical trade secrets, special prices given
to a particular country, and other arrangements that shall be kept
confidential. A breach in this agreement may lead to the cancellation of
vaccine delivery.
Despite
the criticism on government’s procurement deals, President Duterte has
instructed Galvez to strictly comply with the terms agreed upon with the
pharmaceutical companies to ensure the continuity of vaccine supplies.
The
Philippines expects to receive the first batch of COVID-19 vaccines in February
this year. Sinovac, Moderna, AstraZeneca, Pfizer, Johnson & Johnson, and
Gamaleya are among the pharmaceutical companies that the government is
negotiating with.
The
Department of Health (DOH) recorded 2,163 new COVID-19 infections on January
18, bringing the total number of cases in the Philippines to 502,736 with
465,988 recoveries and 9,909 deaths. PND
