Justice Wasiu Animahun of a Lagos High Court sitting in Igbosere has adjourned the suit filed by Guinness Nigeria Plc, against the National Agency for Food and Drug Administration and Control (NAFDAC) to February 8, 2016 to enable parties meet for amicable resolution of the dispute.
Justice Animahun adjourned the suit yesterday after listening to submissions of counsel to both parties.
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 for the payment of the N1 billion 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.
Guinness, dissatisfied with the N1 billion fine, dragged the agency to court urging it to restrain NAFDAC and the Attorney-General of the Federation from enforcing the sanction pending the determination of the suit.
When the suit came up yesterday for mention, counsel to Guinness Plc, Mr. Olasupo Shasore, told the court that 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.
NAFDAC’s lawyer, Mr. O M Abutu also informed the court that the parties 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 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 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 Animahun had in a ruling delivered on December 14 restrained NAFDAC from enforcing the N1 billion fine pending the hearing and determination of the suit.
However, the case was adjourned to February 8 for mention.