Healthy Skepticism Library item: 15477

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Publication type: news

Karofi HA, Ja'afar J.
Nigeria: $75m Pfizer Settlement - Controversy Over Compensation Deepens - Kano Denies Settlement
AllAfrica.com 2009 Apr 12
http://allafrica.com/stories/200904130187.html

Full text:

Though Kano State government and the United States’ foremost drug company, Pfizer, have agreed on the broad terms of an out-of-court settlement in a multi-billion dollar lawsuit.

There are fears that the Pfizer settlement of $75 million may be viewed as an opportunity for some people to feather their nests and buy into the compensation package even where they have no link with the Trovan trial. This would then mean that victims, who are expected to get the best deal for their unfair circumstances may be short-changed.Indications to this effect emerged last Thursday, when stakeholders met in Kaduna to discuss the matters therein. The group included lawyers recruited by the Kano state government to drive the compensation demand from Pfizer, and led by the state Attorney General and Commissioner for Justice, Malam Aliyu Umar. Others were, Mr. Tunde Erukere, Mr. Osunbajo, Mr. Dapo, J. B. Daudu and Kano Commissioner for Health, Hajiya Aisha Isiyaku Kiru, as well as traditional title holders from the Kano emirate.

The aim was to discuss the final draft of the agreement that would form the final settlement of the long litigation over the 1996 Trovan test, based on some considerations. According to Sunday Trust investigation, the meeting was to form the nucleus of another meeting to be held on the 16th of this month in Abuja, at the behest of the pharmaceutical giant.

The discussions were based on several issues of interests, one of them, the term to be used in describing the money to be paid by Pfizer, which has misgivings over the use of the term, compensation, it is reported that it would rather accept the phrase, corporate assistance or settlement. The Pfizer trial victims, under the agreement, and according to the draft were to get $35 million for being used as guinea pigs without their knowledge, leading to their devastating condition, in some cases, and death in others.

Sunday Trust investigations showed that if care is not taken, some interests may reap where they did not sow, as there seemed to be a hidden agenda behind a new scheme for some faceless NGOs to participate in the sharing. Others to also have some cut, would be loyal partners of the pharmaceutical giant that stood by it during the unfortunate situation. The crux of the matter being the new guideline, that Pfizer introduced after an earlier agreement that was sealed and signed by both parties.

The new rules as observed, may be some pre-conditions that would certainly work against only the victims.

The pre-conditions as handed down to the government by the chief negotiator and former head of state, General Yakubu Gowon, included the involvement of a reputable NGO and another committee that must be set up to verify and supervise the disbursement of the ‘compensation’ to the victims based on their level of deformity.

The guidelines described the levels of deformity of the victims as partial deformity, total deformity and death. Under this new rules, those that were partially deformed would be given $10,000.00 while those with total deformity or those that died, would have their representatives given $175.000.00. This offer viewed by many as an attempt to short change the victims.

Another condition stipulates that each of the victims must be proven to have participated in the 1996 Trovan trial, and that the pay would be for 200 victims and not the 191, as stated by the TVF.

Furthermore, the rules regarding the release of the $30 million to the state government for the provision of health facilities were also predicated on some pre-conditions. They are; that an administrative account must be opened by the state government in which the $30 million would be paid between now and the year 2014 and that the committee for the supervision of that account must be under a reliable chairman.

Further investigations by Sunday Trust revealed that during a meeting with all the stakeholders in February, 2008, the issue of verification and medical examination to determine the identity of the victims, including those who died, was raised.

A team from the University of Jos was suggested to carry the verification, an idea that was met with stiff resistance from Professor Isa Hashim who insisted then that there were experienced hands in Kano that would do the exercise.

However, after series of deliberations, Pfizer spokesman Mr Atiba D. Adams, insisted that the pharmaceutical company, was not interested in involving itself, again, in any medical experiment and had no suspicion over the identity of the victims as a wholly and reliable verification that included the police had been concluded.

An agreement was therefore reached that Pfizer would pay ‘compensation’ for the 200 children that they knew they carried the test on, despite the earlier disagreement by leadership of the TVF who insisted that only 191 victims were verified and proven beyond reasonable doubt.

Under this agreement, the Kano state government was to raise another team to find out the remaining 9 victims as Pfizer insisted on paying for the 200 victims. It was also agreed that each of the victims would get a flat rate of $175.000.00 regardless of the level of deformity or even if the victim had died.

While these series of conditions prevailed to the detriment of victims, it was reliably gathered that already, the $10 million share of the legal team, as well as other payments would be made without any condition.

Further investigations by Sunday Trust revealed that the planned involvement of Maryam Uwais NGO, and the drafting of some medical doctors into the verification team, as Pfizer suggested, is being vehemently resisted.

The directive by the chief negotiator and former head of state, General Yakubu Gowon in his submission along with Pfizer’s, that all the conditions raised be met, has not helped matters.

But information available from the Kano government house indicates that the state government was not happy with the conditions, especially those concerning the issue of who will lead the committee and the issue of the payment, spanning over five years. Although the state attorney general, Aliyu Umar refused to comment on the agreement, conditions, or amount, investigations showed that the scheduled 16th April meeting would be presented with the position of the state government over the Pfizer conditions.

Speaking on the current situation of the criminal and civil cases filed against Pfizer, for administering unwholesome drugs to unsuspecting victims, Barrister Aliyu Umar said that the case has been adjourned to 26th May, 2009 to enable a report to be made to the judge on whether or not there has been a settlement in the civil matter.

He noted that on the date that the case was adjourned, he had explained to the court that Kano State government had reached an agreement on general terms with Pfizer. “What remains for us to do now, is to work out details of how what we agreed will be implemented”, he said.

On the issue of the sharing formula of the compensation money, Umar described newspaper reports on the matter as based on speculation, saying that, “I will not quote what we agreed as compensation.” He, however, reiterated that the benefits will be driven by both Kano state government and the victims. ,

While confirming to Sunday Trust that a final agreement on some major issues would be reached during a meeting to be held, Umar said it is only after that, that the state government would publicly explain what transpired. “We are still discussing on what the payment would be, would it be compensation or corporate assistance, we shall reach that agreement at our next meeting,” he also said.

He said, however, that once the final agreement was reached, all other litigations would be withdrawn including criminal charges on some Pfizer staff suspected to be culpable in the 1996 Trovan tests.

He observed that, there was transparency in the conduct of the case as the publicity that it generated was significant enough for the multinationals and the whole world to be cautious on how to handle such cases in future.

Umar expressed hope that 25th of May will culminate into resting the case filled in Nigeria and subsequently, end the one filed in the US, then the action government will take, is expected to strengthen its capacity, procedures and hospitals so as to prevent future recurrence, he stated.

Meanwhile, the state government is insisting on being allowed to appoint a chairman for the Pfizer settlement committee and already, the state’s grand Khadi Alhaji Dahiru Rabiu, has been signalled to act as chairman.

In addition, the state government is pressing Pfizer to pay the $30m due to it in wholesome at latest, before May 31st 2011 and not 2014 as suggested by Pfizer.

When contacted, chairman of the Trovan Victims Association, Alhaji Mustapha Maisikeli refused to comment on the amount and the conditions allegedly said to have been set aside by Pfizer before the payment was made.

He however, told Sunday Trust that whatever the state government agreed on and accepted was equally acceptable to the association.

“We do not want to talk to the press about the issues and we cannot say exactly the situation of things, but whatever the Kano state government decides is agreeable also to us,” he said

Maisikeli also commended Governor Shekarau and the emir of Kano, Dr Ado Bayero for the commitment to the cause of the victims.