Business Trends & Strategies, Government Policies & Politics

Guinness Withdraws Suit Against NAFDAC, Pays N11.4m Fine


Plc on Thursday said it had paid N11.4m to the National Agency for Food and Drug Administration and Control as administrative and service charges after opting to withdraw a suit it filed to challenge the N1bn imposed on it by the agency “for various clandestine violations of rules, regulations and enactments over a long period of time.”

The agency claimed that Guinness had been revalidating its expired products without the authorisation and supervision of .

Among other things, NAFDAC also accused Guinness of failing to secure the gate of its warehouse and claimed that “the raw materials used in the production of beer and non-alcoholic beverages by the brewer were permanently opened to intrusion and exposure to the elements and rodents, which invariably affect the integrity of the raw materials.”

Guinness headed for the court seeking to enforce the violation of its right to fair hearing against NAFDAC following a November 9, 2015 notice of sanction issued on it by NAFDAC.

Guinness, through its lawyer, Mr. Olasupo Shasore (SAN),  filed a fundamental right enforcement action, urged Justice Animahun to declare that its right to fair hearing under Section 36 (1) of the constitution was being violated by NAFDAC.

The court had on February 8, 2016 adjourned till March 16, 2016 for further hearing.

But the Guinness has now filed a notice to discontinue its suit filed before Justice W. Animahun of a in Igbosere.

According to a statement on Thursday, the discontinuance of the suit was pursuant to a “letter dated 15th February 2016 from NAFDAC to the company which was stated to supersede the decisions contained in the Agency’s letter dated 9th November 2015.”

“As part of the resolution, NAFDAC would be present during the destruction of the expired raw materials in its rented warehouse and both parties agreed that this would be the procedure for the exercise in future.

also agreed to pay administrative and service charges to NAFDAC to cover the cost of the investigative inspection of raw materials carried out by the Agency as well as the supervision by NAFDAC of the destruction of the raw materials which would be carried out by .

“The administrative and service charges of approximately N11.4m has since been paid to NAFDAC,” the statement read.




Source: Punch

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