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Manila Bulletin devider Philippines devider National devider Duterte allows LGUs to make advance payments for COVID-19 vaccines

Duterte allows LGUs to make advance payments for COVID-19 vaccines

Published Feb 18, 2021 01:10 pm

Local government units (LGUs) may now make advance payments to pharmaceutical companies to purchase coronavirus (COVID-19) vaccines after President Duterte signed the memorandum order (MO) allowing them to do so on Thursday, February 18.

President Rodrigo Roa Duterte
(JOEY DALUMPINES / PRESIDENTIAL PHOTO / FILE PHOTO / MANILA BULLETIN)

Vaccine czar Carlito Galvez Jr., made the announcement in a Palace press briefing after LGUs appealed to President Duterte to issue an order to enable them to meet the requirement of certain pharmaceutical firms like AstraZeneca for a 20-percent down payment on COVID-19 vaccines.

In his Thursday presser, presidential spokesman Harry Roque said that the signing of the memorandum allows LGUs to make advance payments of up to 50 percent of the total contract amount so they can procure COVID-19 vaccines.

Based on the MO shared by Galvez during the press briefing, the said grant of authority is effective until the lifting of the State of Calamity due to COVID-19.

The memorandum authorizes the National Task Force (NTF) against COVID-19 and the Department of Health (DOH) to make advance payments exceeding 15 percent of the total contract amount for the procurement of COVID-19 vaccines.

The LGUs may also make advance payments exceeding the 15-percent limit as long as they are authorized by the NTF chief implementer, and subject to criteria and limits that he may establish with applicable laws, rules, and regulations.

"In the procurement of COVID-19 vaccines, government agencies and LGUs concerned shall ensure that any arrangements to be entered into shall be in the best interests of the government and the public," the MO read.

"All advance payments to be made pursuant to this Order shall be subject to procurement law, auditing rules and regulations, and other pertinent issuances," it furthered.

In September last year, President Duterte slammed western pharmaceutical companies for seeking advance payments for COVID-19 vaccines, saying they are just looking for someone who will finance their research and development activities.

However in November last year, President Duterte finally allowed the government to make advance payments after realizing that the Philippines might be left behind because other countries were already scrambling to get the shots.

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