AstraZeneca will be fined for not respecting the contract with the EU
May 26, 2021, 2:17 pm

AstraZeneca

Documents are seen ahead of a hearing at a Belgian court in the legal case against the AstraZeneca firm accused by the EU of having breached its contract for the supply of the coronavirus disease (COVID-19) vaccines, in Brussels, Belgium May 26, 2021. REUTERS/Yves Herman

Francesco Guarascio

A lawyer for the European Union accused AstraZeneca (AZN.L) on Wednesday of failing to respect its contract with the 27-nation bloc for the supply of COVID-19 vaccines and asked a Belgian court to impose a large fine on the company.

The EU took the Anglo-Swedish firm to court in April after the drugmaker said it would aim to deliver only 100 million doses of its vaccine by the end of June, instead of the 300 million foreseen in the supply contract.

Brussels wants the company to deliver at least 120 million vaccines by the end of June. AstraZeneca had delivered 50 million doses at the beginning of May, one-fourth of the 200 million vaccines foreseen in the contract by then.

"AstraZeneca did not even try to respect the contract," the EU's lawyer, Rafael Jafferali, told a Brussels court in the first hearing on the substance of the legal case.

He said the EU was seeking 10 euros ($12.2) for each day of delay for each dose as compensation for AstraZeneca's non-compliance with the EU contract. This penalty would apply from July 1, 2021, if the judge accepted it.

The EU lawyer saidthe EU was seeking an additional penalty of at least 10 million euros for each breach of the contract that the judge may decide.

A verdict is expected next month.

NOT A CONTRACT FOR SHOES

"This is not a contract for the delivery of shoes or T-shirts," AstraZeneca's lawyer Hakim Boularbah told the court later on Wednesday, stressing the complexity of manufacturing a new vaccine.

The company has repeatedly said the contract was not binding as it only committed to make "best reasonable efforts" in delivering doses. AstraZeneca's lawyer told the judge the vaccine was sold at cost.

Jafferali said that principle had not been respected because the drugmaker had not delivered to the bloc 50 million doses produced in factories that are listed in the contract as suppliers to the EU, of which 39 million doses manufactured in Britain, 10 million produced in the United States and 1 million in the Netherlands.

The lawyer said these doses were "diverted" to other clients.

The company has said that doses produced in Britain were reserved under a contract the British government signed with the University of Oxford, which developed the vaccine.

Jafferali said AstraZeneca had pledged in the EU contract not to have other engagements that would prevent it from abiding by the terms of the deal.

The lawyer also said AstraZeneca had failed to communicate to the EU in a timely manner the magnitude of its supply problems because it repeatedly sent messages, including publicly, that it was able to meet its targets, before finally admitting there were large shortfalls in March.

The company had warned the EU in December of production problems, but communicated only at the end of January, just before the start of deliveries, a much larger cut than initially expected for the first-quarter.

Reuters, May 26, 20213:31 PM EEST

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.