Guinness Nigeria, NAFDAC may settle out of court over N1bn fine

A Lagos High Court, at Igbosere has adjourned the suit filed by Guinness Nigeria Plc, against the National Agency for Food and Drug Administration and Control (NAFDAC) over a N1 billion fine imposed on Guinness “as administrative charges for various clandestine violations of NAFDAC rules, regulations and enactments over a long period of time”.

The Court said that the adjournment will enable parties meet for an amicable resolution of dispute.

The counsel to Guinness, B. Salihu, told the court that the parties were yet to reach an agreement as they were still holding meetings to see if the matter could be settled out of court.

The counsel to NAFDAC, O.M. Abutu, also confirmed that parties were still holding talks.

However, Justice Wasiu Animashun, adjourned the case to March 16, 2016, for mention.

NAFDAC had imposed a N1 billion fine on Guinness “as administrative charges for various clandestine violations of NAFDAC rules, regulations and enactments over a long period of time”.

The agency had, in a letter addressed to the Managing Director of Guinness Nigeria Plc, Peter Ndegwa, by the Head, Investigation and Enforcement of NAFDAC, Kingsley Ejiofor, demanding the payment of the N1billion as administrative charges, for infractions, such as the destruction activities carried out by the company, without the authorisation and supervision of the agency.

Guinness was also accused by the agency of revalidating expired products without authorisation and supervision by NAFDAC, as well as failing to secure the gate of its warehouse as the raw materials used in the production of beer and non-alcoholic beverages by the firm were permanently opened to intrusion and exposure to the elements and rodents, which “invariably affect the integrity of the raw materials”. NAFDAC also alleged that Guinness maintained poor documentation of record and not complying with conditions contained in the certificate of validation of the revalidated malt extract, which required the storage of the items in cool and dry place and elimination of exposure to sunlight. Dissatisfied with the N1 billion fine, Guinness dragged the agency to court, and urged it to restrain NAFDAC and the Attorney-General of the Federation from enforcing the sanction pending the determination of the suit.

At the last adjourned date, counsel to Guinness Plc, Mr. Olasupo Sasore, also told the court that the representatives of Guinness Plc and that of NAFDAC were meeting on the sanction imposed on the company, adding that he was hopeful the matter would be resolved.

Abutu also informed the court that the parties had met on December 21, but that he was not privy to what actually transpired at the meeting.

He said: “I confirm that the applicant, Guinness, met with the NAFDAC yesterday, but I was not part of the meeting and I have not been briefed about its outcome.”

Abutu had urged the court to adjourn the matter to enable the agency reply to the originating process filed by Guinness and for possible out of court settlement of the matter.

The company had urged the court to declare that the fine imposed by NAFDAC violated its right to fair hearing as guaranteed under section 36 (1) of the Constitution.

Justice Animashun had in a ruling delivered on December 14 restrained NAFDAC from enforcing the N1billion fine, pending the hearing and determination of the suit.

Meanwhile the case has been adjourned to March 16.