SAAI CALLS FOR TRANSPARENCY AND ACCOUNTABILITY OVER OBP VACCINE PRICING AND CAPACITY

PRETORIA – Saai is calling for a thorough investigation intothe role of Onderstepoort Biological Products (OBP) in the alleged manipulationof vaccine pricing and procurement, as well as questions surrounding itsproduction capacity, and how these issues have affected South African livestockfarmers and the country’s ability to respond effectively to foot-and-mouthdisease (FMD).

The investigation must also examine the half a billion randthat reportedly disappeared at OBP, as well as whether OBP remains fit tomanufacture vaccines and to import, handle, store and distribute them. Farmersalso want to know whether OBP made irregular profits from other stateinstitutions through the distribution of FMD vaccines.

The call follows reporting by African Farming on theprecautionary suspension of OBP’s acting chief executive, Dr Jacob Modumo,pending an investigation into alleged irregularities relating to FMD vaccinepricing. Saai acknowledges that the reported suspension does not constitute afinding of wrongdoing and that all allegations must be properly investigatedthrough due process.

The report also refers to information presented toParliament indicating that imported vaccines accounted for approximately 94% ofOBP’s local sales during the final quarter of the 2025/26 financial year. Itfurther raises questions about differences between prices reportedly charged toat least one provincial government and prices available through privateprocurement channels.

These figures, the basis for any price differences, and thecosts associated with handling, verification, transport and distribution mustbe independently verified and clearly explained. Farmers and the public need toknow whether vaccines have been supplied efficiently and affordably, andwhether public funds have been properly protected.

Saai is also concerned about reported questions regardingOBP’s long-term production capacity and the progress of its Good ManufacturingPractice (GMP) modernisation project. Any investigation should establish whatfunding was allocated, how it was spent, what was delivered, what delaysoccurred, and whether corrective or legal action is required.

South Africa’s livestock producers cannot continue to carrythe economic consequences of disease outbreaks while critical animal-healthinstitutions remain subject to unresolved questions about supply, pricing andoperational readiness. Where imported vaccines are necessary, procurement mustbe transparent and value for money must be demonstrated. At the same time, thecountry requires a credible strategy to maintain and strengthen domesticvaccine-production capacity.

Dr Theo de Jager, Executive Board Chairman of Saai, said:

“From the farmers’ point of view, OBP is nowhere nearfulfilling the purpose for which it was established, and it has failed usdismally. It would cost so much to get the institution back on track, while therisk remains so high that OBP could simply collapse again under the burden of acorrupt political environment characterised by cadre deployment, looting andthe exploitation of disasters such as the FMD outbreak for profiteering, thatthe effort is simply not worthwhile. Hence our call for the privatisation ofOBP.”

Saai supports due process for individuals and institutions,but accountability must follow where investigations establish that publicresources were misused, farmers were unfairly burdened or strategicanimal-health capacity was weakened. The final findings and any remedialmeasures should be made public.

Saai is the Southern African Agri Initiative, anorganisation focused on protecting family farmers, food production and ruraleconomies. Saai advocates for responsible agricultural policy, secure propertyrights, sustainable farming and the conditions necessary for farmers tocontinue producing food.