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Uncertainty persists over foot-and-mouth disease (FMD) vaccine payments despite government assurances
Government has indicated that payments related to South Africa’s FMD vaccine procurement and rollout have been completed. However, feedback from stakeholders suggests that not all aspects of the process are clearly understood or experienced consistently. While no single account points to outright failure, variations in timelines, communication, and expectations have introduced a degree of uncertainty, highlighting the complexity of co-ordinating disease response measures across multiple role-players.
Concerns raised over vaccine payments
Stakeholders who contacted AgriOrbit expressed particular concern about payments to vaccine suppliers from Argentina and Turkey.
The first shipment of one million doses of Biogénesis Bagó’s FMD vaccine, Bioaftogen, was ceremonially received by minister of agriculture, John Steenhuisen, on 21 February. These vaccines were manufactured in Argentina.
Shortly thereafter, on 28 February, the Turkish Dollvet FMD vaccine, Aftodoll, was imported into the country by its regional marketing partner, Dunevax Biotech. These vaccines were received by Onderstepoort Biological Products (OBP) on behalf of the state early in March.
Questionable management by OBP
This is the same OBP where questions still linger over the disappearance of R500 million. Despite the minister’s insistence that the company has turned an honest corner, a figure approaching half a billion rand does not simply vanish without raising serious concerns.
As a state-owned producer responsible for safeguarding animal health, OBP has become a focal point of concern – one that sits uneasily between official assurances and lingering uncertainty. The missing funds were tied to critical vaccine production and procurement efforts meant to strengthen South Africa’s disease-control arsenal. Yet details about how the money was allocated, spent, or accounted for remain contested.
In the absence of a clear and consistent narrative, the missing millions have come to symbolise something larger: a breakdown in oversight, a strain on institutional accountability, and the difficulty of reconciling public statements with the reality on the ground.
This is why stakeholders’ scepticism regarding the current process is understandable. After all, if it happened once, who’s to say it won’t happen again?
In fact, as AgriOrbit began investigating the matter, it soon became evident that OBP is central to the payment process for the vaccines. Questions initially directed to the minister’s office were rerouted to the chief executive officer (CEO) of OBP, Dr Jacob Modumo.
How distribution works
Dr Modumo explained telephonically that, in the case of FMD vaccines, OBP procures the products on behalf of government from international suppliers. He noted that the parastatal cannot act independently in this regard and that the entire process is subject to formal auditing.
Once all the paperwork and administration are completed, a company’s products may be imported into South Africa. They are then transferred to OBP storage facilities in Pretoria, where they are received with a delivery note. “We can then load the vaccines onto the OBP system,” Dr Modumo said, adding that the vaccines are counted to ensure quantities are correct and products are in a good condition.
Once the product has been recorded onto the system, the Department of Agriculture is notified. Departmental officials can then inspect and verify the shipment.
“After verification is complete, government informs us where the vaccines must be sent for distribution. Once we’ve received confirmation, we then distribute the vaccines to the various provinces based on the government’s list.” Dr Modumo said OBP only transported the vaccines to the various provinces’ storage facilities, where they were formally handed over. From that point, the provinces take responsibility for further distribution.
How payments work
According to Dr Modumo, the delays in payments to the two suppliers stemmed from different administrative issues.
In the case of Dollvet, the delay related to incomplete or non‑compliant paperwork from its South African partner, Dunevax. “We struggled to get them to adhere to required government documents,” he said, noting that as a locally registered company, Dunevax had to comply with government supplier‑registration processes.
Dr Modumo confirmed that government had already transferred the funds for Dollvet to OBP, and OBP aimed pay the private company as soon as possible. Especially since March marks OBP’s financial year end.
With regards to Biogénesis Bágo, there was an issue with payment due to stock damage. Dr Modumo said the company was paid on Friday, 20 March. “This was a quantity issue, not a payment issue. Generally, there isn’t any problems to pay international companies. It is local payments that are more challenging,” he said.
PFMA exemptions granted
On 18 March, the National Treasury of South Africa granted the Department of Agriculture an exemption from specific provisions of the Public Financial Management Act (Act 1 of 1999).
According to the Democratic Alliance (DA) this exemption enables the Department to quickly reallocate funds to combat the ongoing FMD outbreak. “This exemption empowers minister Steenhuisen to redirect funding from programmes such as economic development, trade, and marketing toward critical areas, including agricultural production, biosecurity, and natural resource management,” the DA said in a press release.
The DA described this as “decisive action, coupled with proper resource allocation.” The party believes that this is essential for safeguarding food security, protecting livelihoods, and maintaining South Africa’s agricultural export standards. – Susan Marais, Plaas Media
