Countries in the region have changed their laws in favor of laboratories

The the massive purchase of Covid-19 vaccines has once again covered Latin America with a blanket of opacity. Pressure from laboratories and governments’ desperation to acquire millions of doses against the clock promoted changes in the legislation of almost all countries in the region. As happened in Argentina, the majority changed its laws to grant financial compensation and confidentiality to the pharmaceutical companies that produce the vaccine.

At least 13 Latin American countries changed their laws to buy the Covid-19 vaccine between September 2020 and February this year. A survey by the Palta Network, which is part of LA NACION, in alliance with the Legislative Directory Foundation detected 23 new regulations between laws, decrees and resolutions which added, from different angles, opacity to these acquisitions. The combo is complemented by tax exemptions and changes to the procurement system to avoid tendering, all measures adopted by Argentina.

An anti-trial shield

Argentina, Brazil, Colombia and Peru, among other countries in the region, have also been exposed to demands for financial compensation imposed by the laboratories.. Eight Latin American countries have changed their laws to deal with possible lawsuits that vaccine manufacturers could face with likely serious adverse reactions after mass immunization plans are implemented.

Congress approved the Covid-19 Vaccine Public Interest Act in November, a regulation that allowed for the landing of Sputnik V and Sinopharm vaccines, but which has been questioned by the Pfizer laboratory. The Argentinian deputies detailed that in the event of “negligence” of the company, the state would not take charge of possible lawsuits against the company, which started the conflict with the pharmaceutical company.

In Peru, for example, government officials revealed that this laboratory was asking for clauses that exempted it from liability for possible adverse effects of the antigen and delays in the delivery of batches. The government had to issue a decree expressing a commitment to submit to international arbitration, but as a result there was a delay of several months and the contract was finally signed in February.

Other countries, such as Colombia, have included other requirements imposed by Pfizer to sell its vaccine in their regulatory changes. Colombia has specified in the new regulations the possibility of contracting a “global coverage policy to cover any convictions that may arise”. Something similar happened in Mexico, the Dominican Republic and Panama, where this laboratory was directly mentioned in its regulations due to its demand for confidentiality in procurement.

Pfizer has been questioned in recent months by various governments in the region, which accused it of demanding unacceptable conditions to sell vaccines. To guard against possible legal action, the pharmaceutical company has even asked countries to back the company by putting their sovereign assets as collateral, which are among others federal reserves and military assets.

But it wasn’t just Pfizer that demanded conditions from Latin American governments. With different nuances, all the labs demanded that the laws be changed to give compensation.

Felicitas Torrecilla, Research Coordinator of the Legislative Directory Foundation, explained: “We have seen that 13 governments had to make significant concessions to sign contracts, concessions which today limit – if not prevent – the public access to critical information based on the prices they paid for vaccines in all countries. These questions are crucial to understanding not only how the vaccine access process was conducted, but also the global challenges related to health equity in an unequal world. “

Discreet contracts and negotiations

While some countries have not amended their legislation to compensate laboratories, almost all have changed their regulations to provide confidentiality in the procurement process and, also, to ensure shortcuts in public procurement systems. According to this survey, 16 countries purchased vaccines directly, that is, without public tendering.

Argentina was one of the countries that for the first time changed its public procurement system, which allowed it to speed up procurement times during the pandemic but, at the same time, gave more discretion to officials. Later, the vaccine public interest law passed by Congress assured the laboratories of confidentiality in negotiations and in the contract.

“Nothing justifies secrecy in vaccine purchase contracts. In order to monitor what the government does, it is essential to ensure access to information on what is purchased, at what price, what is received, how and with what criteria vaccines are distributed and applied. Secrecy opens up the possibility for public servants to abuse their power for their own benefit and that of their family, friends and political supporters. This conduct is a clear case of corruption and violation of the duties of public officials and the law on public ethics, ”he said. Delia Ferreira Rubio, president of Transparency International.

While negotiating the arrival of vaccines, the Peruvian government issued an emergency decree in September 2020 that excluded vaccine purchases from the public procurement law. These advantages also extend to the processes of distribution, application and other complementary contracts to carry out the vaccination plan. Another similar case is Mexico, which included in the amendments to its regulations the possibility of making payments more flexible for vaccine manufacturers. “It will be possible to grant the necessary payments and advances which will allow them to obtain better conditions of opportunity and as soon as possible”, specifies the standard.

The cloak of opacity thrown by the new regulations includes, in the case of Uruguay, these same legal changes. The decree was directly classified as confidential information, that is, it is not accessible to the public.

Use existing or newly created laws and regulations to mark confidentiality, none of the Latin American countries have made public the documents relating to the purchase of vaccines (except some purchases in Chile) or negotiations with the laboratories.

Some countries, such as Mexico and Costa Rica, have set a deadline for confidential vaccine negotiations and procurement contracts. The Mexican government used its transparency law to set the end of privacy in five years and Costa Rica marked it in a year.

Almost no state in the region has disclosed the price it paid for each dose. The exception in this regard is Honduras, which has revealed the price it paid for the vaccine that will arrive through the Covax Global Access Fund. Similarly, the Chilean Minister of Health has publicly stated that he has paid $ 12 for each dose of Pfizer and $ 11.4 for Sinovac. While in Mexico, the Under Secretary for Prevention and Health Promotion said the country paid $ 9.95 for each dose of Sputnik V vaccine and $ 4 per dose for the AstraZeneca vaccine.

Besides the confidentiality facilities, anti-demand clauses and other advantages mentioned above, there is another advantage for the laboratories: the tax exemption for the purchase of vaccines in at least four countries. Argentina has included the tax exemption for vaccines in its law: it has been established that import duties or any other taxes or charges do not have to be paid for doses against Covid-19 entering the country. Like Argentina, similar cases have been recorded in Mexico, Bolivia and Guatemala.

This is a modified version of the original report posted on the Palta Network. The full version of the story can be found on the website of Red avocado.

Collaborators: Florencia Rodríguez Altube and Delfina Arambillet (LA NACION data), Sergio Silva (El Espectador), Isaías Morales and Claudia Palma (Ojoconmipisto), Natalia Uval (La Diario), Datasketch and Fundación Legislative Department team.

Thank you: Fabiola Chambi and Nelfi Fernández (Bolivia), Chile Transparente, Javiera Briones (Chile), Carolina Nussbaum (Argentina).

* This production is part of a regional survey, conducted by the Network of Latin American Journalists for Transparency and the Fight against Corruption (Red Palta) in alliance with the Legislative Directory Foundation. Red Palta is made up of: The Uruguayan Daily, OjoPublico of Peru, Colombia data sketch, THE NATION from Argentina, POWER from Mexico, OjoConMiPisto from Guatemala Yes The lighthouse of El Salvador.