Opinion Piece: Did the Government Block Tzu Chi's Vaccine Purchase? Vaccine Fraud Case Awaits Judicial Investigation

Time goes back to 2021. On June 23 at 9:00 a.m., Tzu Chi Foundation CEO Yen Po-wen, Deputy CEO Ho Jih-sheng, and lawyer Chen Yu-hsuan personally visited the Taiwan Food and Drug Administration (TFDA) under the Ministry of Health and Welfare to complete the application process for purchasing 5 million doses of German-made BNT vaccines. On June 26, President Tsai Ing-wen held a video conference with Venerable Master Cheng Yen, promising active support. On July 1, the Executive Yuan approved the 'Tzu Chi Procurement Special Project,' following the same model used by TSMC and Yonglin Foundation. On July 10, the government formally authorized Tzu Chi to sign procurement documents. On August 3, emergency use authorization for the BNT vaccine was granted. On September 2, the first batch of 930,000 doses arrived in Taiwan at 7:00 a.m. At that time, cumulative deaths from the pandemic had reached 837—making the vaccine delivery a precious and timely relief.

Reviewing the timeline from Tzu Chi’s application onward, there is no evidence that the government obstructed its vaccine purchase. During the pandemic, multiple entities attempted to procure vaccines. Minister of Health and Welfare Chen Shih-chung warned of 'vaccine brokers,' but this statement was not directed at Tzu Chi. Tzu Chi, along with Yonglin Foundation and TSMC, each committed to purchasing 5 million doses through a 'government-authorized' channel directly from the 'original manufacturer,' totaling 15 million doses—unlike procurement through unverified private channels.

Why did the public perceive the government as blocking vaccines? This perception may stem from political complications in other cases, a matter requiring joint review by ruling and opposition parties. There was no truth to rumors that Tzu Chi was defrauded by brokers falsely claiming exclusive access to vaccines or special channels. Although Tzu Chi’s BNT vaccine shipments were consolidated with those of Yonglin and TSMC, legal procedures and pricing negotiations had already begun separately due to different initiation timelines. Vaccine procurement involved confidentiality agreements, which naturally led to differences in purchase prices.

Tzu Chi entrusted Yu-Da Company for specialized legal support. From application submission through all procedures to airport reception upon arrival, Yu-Da’s lawyer Chen Yu-hsuan was present at every stage. All 5 million doses were delivered as agreed, and the commission was fully settled—therefore, the question of 'why no report was filed' does not arise. Chen Yu-hsuan is a well-known senior lawyer, and before the incident surfaced, few would have suspected wrongdoing.

After receiving substantial funds from Tzu Chi, Yu-Da Company allegedly fabricated numerous fake invoices using assistants and straw companies, conducted circular transactions through shell companies, and frequently withdrew large sums of cash within short periods to conceal fund flows and evade taxes. The Investigation Bureau’s Anti-Money Laundering Division detected abnormal transactions after receiving alerts from financial institutions, leading to the exposure of this case.

Whether Tzu Chi was defrauded by overpaying for vaccines awaits judicial determination. Yu-Da quoted Tzu Chi a price of USD 41 per dose, inclusive of vaccine cost, cold-chain logistics, and service fees—within the price range reported by media. At the time, the pandemic was severe, the population lacked immunity, and the fatality rate was high. The domestic Medigen vaccine had also been criticized for high pricing, prompting Minister Chen to state, 'We must buy it, no matter the cost.' As for whether Tzu Chi knew the exact commission amount, given the urgency and procurement timeline, even if they did, there was no time for extensive negotiation or to abruptly replace the agent and restart the process. Criticizing the price now, in hindsight, is merely Monday-morning quarterbacking.

Had the government accepted private donations and directly negotiated with the manufacturer or agents at the time, could people have received vaccines earlier and avoided such disputes? This remains a critical question for future policy reflection.

*The author serves at the Taiwan Leshan Innovation and Development Association.