Velasco bill allows LGUs to directly buy COVID vaccines from manufacturers

Speaker Lord Allan Velasco has filed a bill which seeks to expedite the purchase and administration of COVID-19 vaccines by allowing localities to directly purchase from manufacturers without going through the process of public bidding.

House Bill 8648 or the proposed Emergency Vaccine Procurement Act of 2021 aims to provide exemptions to compliance by local government units with the procurement requirements under Republic Act 9184 or the Government Procurement Reform Act.

The said bill is co-authored by Majority Leader Ferdinand Martin Romualdez and Minority Leader Joseph Stephen Paduano.

“The next crucible in the fight against the COVID-19 pandemic is the speedy procurement and effective administration of vaccines against the deadly disease,” Velasco said.

“Time is of the essence. Each day of delay is very costly for the government, and leaves many of our vulnerable countrymen exposed to the dangers of this disease.”

According to Velasco, the proposed measure will ensure that the vaccines will be procured and administered in a fast and effective manner. Velasco said the vaccination process is important to attain herd immunity.

He pointed out that LGUs play a significant role in ensuring that their respective constituents are protected against the disease as well as in the aspect of economic recovery.

The measure will authorize LGUs to engage in an advance payment mechanism for purposes of procuring COVID19 vaccines from foreign manufacturers, Velasco said.

This will also let provinces, cities and municipalities make advance payment not exceeding 50% of the contract amount for the procurement of COVID-19 vaccines, unless otherwise directed by President Rodrigo Duterte.

“Following the advance payment of the supply of vaccines, the foreign manufacturer, in consideration of its agreement with the concerned LGU, shall undertake to deliver the supply of vaccines within six months from the perfection of the contract,” Velasco said.

“However, the availment of the advance payment mechanism is not an exemption to the post-transaction audit that the Commission on Audit must conduct on the LGUs,” he added.

Under the bill, the requirement of Phase IV trials for COVID-19 medication and vaccine stipulated in the Universal Health Care Law is waived “to expedite the procurement of said medication and vaccine, provided that these are recommended and approved by the World Health Organization and other internationally recognized health agencies.”

He added that another important provision of the bill is the creation and administration of indemnification funds if ever there are adverse effects following the inoculation.

The procurement, importation, storage, transport, distribution, and administration of COVID19 vaccines by the local government units shall be exempted from customs duties, value-added tax, excise tax, and other fees, provided that the vaccines acquired will only be used for residents and not for commercial distribution, Velasco said.

Velasco reminded that LGUs could only buy vaccines that are approved by the Food and Drug Administration and that it must be in accordance with the guidelines enforced by the Department of Health and the National Task Force Against COVID19. — RSJ, GMA News