More crony capitalism, this time on the federal level

It was recently revealed that the Department of Health and Human Services has entered into a contract with a New York based corporation called Siga Technologies.  You the taxpayer, will pay Siga $443 million, and, in return, Siga will supply “an experimental remedy for a threat that may not exist”.  And, were that not enough, Siga was the only company allowed to bid on this contract.

Under the contract, Siga will provide 1.7 million doses of an anti-viral pill known as ST-246 for “only” $255 per dose.  The pill is supossed to treat small pox. Of course, the federal government already has $1 billion supply of small pox vacine which cost the federal government a whopping $3 per dose.

Here is how this arrangement happened.

When Siga complained that contracting specialists at the Department of Health and Human Services were resisting the company’s financial demands, senior officials replaced the government’s lead negotiator for the deal, interviews and documents show.

When Siga was in danger of losing its grip on the contract a year ago, the officials blocked other firms from competing. [emphasis supplied]

And, were that not enough,

The price of approximately $255 per dose is well above what the government’s specialists had earlier said was reasonable, according to internal documents and interviews. [emphasis supplied]

But the worst part is we don’t even know if this drug will work.  Small pox was eradicated world wide in 1978, so, there is no one on whom to test the drug, and, even if it is tested on animals, scientists cannot say that the drug will have the same effect on humans.

I almost forgot…Siga’s largest shareholder is none other than Ronald O. Perleman, a long time Democratic Party donor.

 

SoundOffSister

The Sound Off Sister was an Assistant United States Attorney for the Southern District of Florida, and special trial attorney for the Department of Justice, Criminal Division; a partner in the Florida law firm of Shutts & Bowen, and an adjunct professor at the University of Miami, School of Law. The Sound Off Sister offers frequent commentary concerning legislation making its way through Congress, including the health reform legislation passed in early 2010.

9 Comments

  1. Tim-in-Alabama on November 15, 2011 at 8:01 pm

    It is important we have this small pox medicine available to deal with the illnesses caused by the small pox infected blankets given to the OWS squatters by Wall Street fat cats, the GOP and Fox News.



    • Dimsdale on November 15, 2011 at 10:08 pm

      LOL!



    • GdavidH on November 15, 2011 at 11:18 pm

      1- Tim, you crack me up.

      2- If only!? ?



  2. Dimsdale on November 15, 2011 at 10:09 pm

    Whatever happened to “the appearance of impropriety”?? Or at least some subtlety in corruption?



    • ricbee on November 15, 2011 at 10:54 pm

      ?They don’t care anymore-its;IN YOUR FACE!



    • JBS on November 16, 2011 at 6:32 pm

      These people, the Regime, have no shame. They know that NO ONE (who matters) will call them out. It is “IN YOUR FACE”!



  3. Gary J on November 16, 2011 at 7:55 am

    yeah, the transparency of this administration? <as stated in original campaigning statements >is astounding. Free money to friends. easier than getting rich by getting elected to Congress and doing legal insider trading huh? The entire system is broke. Few in government that are actually interested in our country. It’s all about “me” getting more money for “me”.



  4. Plainvillian on November 16, 2011 at 9:22 am

    Don’t ‘progressives’ always fund expensive solutions to nonexistent or created crises while benefiting donors?? It’s time for real change.



  5. JBS on November 16, 2011 at 6:02 pm

    Where is the outrage from the “lamestream media” and the “drive-by media”?
    This is really business as usual for them. “Ho hum, no story there.” If there is no reaction from them, there must be a whole lot more of this going on than we (will ever) learn about.
    Maybe the Regime was trying to make nice with former Lybian despot Gaddafi before his demise because he had a small pox bio-weapon?
    A billion here and a billion there, won’t that add up to real money someday?
    Maybe the media is really government controlled!
    Follow the money!



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