Philippines
National
Duterte finds loopholes in indemnity clause in vaccine deals, says gov't can't assume 'sovereign liability'
Duterte finds loopholes in indemnity clause in vaccine deals, says gov't can't assume 'sovereign liability'
President Duterte is opposed to the indemnification clause in the supply contracts for vaccines purchased by the private sector.
The government could not assume "sovereign liability" for the private sector-bought vaccines, including their possible adverse effects and other logistics problems, the President said Monday, March 22.
In a televised address, the President found loopholes in the indemnity clause in the supply deals, questioning the legality of taking full liability for "something which is beyond our control in the first place."
"The government cannot guarantee much less give you an immune status na you are freed of any and all liability. Masyadong mataas (It's too high)… I think we cannot even do that even if we wanted to, 'yong assumption ng liability for the stocks that are bought from the private sector," he said.
"Sabihin mo sa kanila hindi puwede. Because in the first place, hindi atin 'yan. Ngayon, kung nagka-leche-leche 'yan, (Tell them that it's not possible. Because in the first place that's not ours. Now, if there are problems like) mishandling, or for whatever reason, it is not effective as advertised, then they will go after against whom?" he said, addressing vaccine czar Carlito Galvez Jr.
The acquisition of vaccines by the private sector under a tripartite arrangement with the government and the suppliers was among the issues discussed during the President's meeting with Galvez and other government officials in charge of the pandemic response at the Malago clubhouse inside Malacanang Park Monday, March 22.
The delivery of the country's vaccine supply was earlier delayed after some vaccine suppliers sought legal protection from lawsuits in case of adverse side effects from vaccine use.
Last month, President Duterte signed Republic Act No. 11525 or the COVID Vaccination Program Act of 2021 setting up the P500-million fund to compensate vaccine recipients for bad side effects.
The new law also shields government officials and workers, contractors, manufacturers, volunteers, and representatives of private entities involved in the vaccination program from "suit and liability under Philippine laws concerning all claims arising out of, related to, or resulting from the administration or use of a COVID-19 vaccine under the COVID-19 Vaccination Program except arising from willful misconduct and gross negligence."
In his remarks Monday, Duterte said the vaccine manufacturers wanted the government to assume the liability for the vaccines bought by the private sector but insisted that this might be illegal.
"May malaking butas diyan, actually. Assumption of liability ng ganoon --- sovereign liability. Hindi… Cannot be. Hindi ho puwede (That's a huge loophole -- the assumption of sovereign liability. Cannot be. That's not possible)," he said.
Galvez informed the President that some vaccine suppliers only agreed to sell vaccines to private entities if the indemnity clause was included in the supply deal. He said the manufacturers wanted to “immunity” from "any liability or suit" in case of adverse side effects from vaccine use since the products were still under clinical trials.
"Sa lahat po ng kontrata, nakapirma po tayo ng indemnification clause at saka humihingi po sila ng indemnification just in case magkaroon po ng adverse effect. Iyong responsibility po na 'yon, hindi po natin puwedeng mai-delegate sa private sector or sa LGU (In all contracts, we signed the indemnification clause and they asked for indemnification just in case there will be a side effect. That's our responsibility. We cannot delegate it to the private sector or the local government unit)," Galvez said.
Duterte however refused to indemnity for the complications arising from the vaccine use. He pointed out that only Congress has the power to grant such indemnification over the purchased goods.
"We are not allowed to sign any agreement to that effect na nandiyan nakalatag lahat that they are these --- they are being --- or they are the buyers of such and such. Tapos nandoon 'yong payment and tapos nandoon 'yong indemnification na gobyerno ang magbayad? (And the payment is there and the indemnification clause states the government will pay?) Hindi (No). I do not think that it will be legal," he said.
"Ang makagawa lang niyan is Congress, wala nang iba (Only Congress can do that, no one else). When you assume a liability or you incur something na which is not --- which is beyond your control," he said.