House panel OKs bill allowing LGUs to directly purchase Covid-19 vaccines

MANILA, Philippines — The House committee on appropriations approved Thursday a consolidated bill seeking to expedite the administration of Covid-19 vaccines in the country by allowing local government units (LGUs) to directly purchase the shots from manufacturers.

During its online meeting, the committee approved the consolidated version of House Bill No. 8648 filed by Speaker Lord Allan Velasco, Majority Leader Martin Romualdez, and Minority Leader Joseph Stephen Paduano; as well as House Bill No. 8649 filed by Quirino Rep. Junie Cua.

The measure, however, was approved subject to amendments.

Velasco’s version of the measure seeks to provide exemptions to compliance by LGUs with the procurement requirements under Republic Act 9184 or the Government Procurement Reform Act.

The measure covers LGUs purchase of Covid-19 vaccines and other much-needed supplies during the pandemic.

Further, 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 the medication and vaccine, provided that these are recommended and approved by the World Health Organization (WHO) and other internationally recognized health agencies.

Moreover, the bill also allows provinces, cities and municipalities to make advance payments not exceeding 50 percent of the contract amount for the procurement of Covid-19 drugs and vaccines, unless otherwise directed by the President.

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.

However, the availment of the advance payment mechanism is not an exemption to the post-transaction audit that the Commission on Audit (COA) must conduct on the LGUs, the bill states.

The COA shall submit the post-transaction audit report to both houses of Congress before the end of the quarter when the transaction is perfected through that mode of payment.

As a safety measure, provinces, cities, and municipalities may only purchase Covid-19 vaccines that are registered with the Food and Drug Administration (FDA), or issued with an emergency use authorization status.

The bill also states that the deployment of the vaccines in every province, city, and municipality must be in accordance with the national guidelines implemented by the Department of Health and the National Task Force Against Covid-19.

The measure also excepts from import duties, taxes, and other fees the procurement, importation, storage, transport, distribution, and administration of Covid-19 vaccines by the LGUs.

Since the measure has already hurdled the committee level, it will be brought to the plenary for further debates.

JPV