An Igbosere Lagos State High Court, yesterday adjourned a suit filed by Guinness Nigeria Plc against the National Agency for Food and Drug Administration and Control (NAFDAC) till February 8, next year, to give the parties time to resolve the dispute.
Justice Wasiu Animahun adjourned the suit following submissions of counsels that a meeting was ongoing to settle the matter out of court.
NAFDAC had imposed a N1billion fine on Guinness “as administrative charges for various clandestine violations of NAFDAC rules, regulations and enactments over a long period of time”.
In a letter addressed to the Managing Director of Guinness Nigeria Plc, Peter Ndegwa, by the Head, Investigation and Enforcement of NAFDAC, Kingsley Ejiofor, the regulatory agency had requested 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.
The agency, among others, accused Guinness of revalidating expired products without authorisation and supervision by NAFDAC, as well as failing to secure the gate of its warehouse, which left the raw materials used in the production of beer and non-alcoholic beverages permanently open to intrusion and exposure to the elements and rodents.
Dissatisfied, with the N1billion fine, the company approached the court asking it to restrain NAFDAC and the Attorney-General of the Federation (AGF) from enforcing the sanction pending the determination of the suit.
When the suit came up yesterday for mention, counsel to Guinness, Mr. Olasupo Shasore (SAN), 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.
Addressing the court, NAFDAC’s lawyer, Mr. O. M. Abutu, acknowledged that parties met on Monday (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 agency yesterday, but I was not part of the meeting and I have not been briefed about the outcome of the meeting.”
Abutu urged the court to adjourn the matter to enable NAFDAC reply the originating process filed by Guinness and for possible out-of-court settlement.
In his submission, counsel to the Attorney-General of the Federation, Mr. T. Mokuolu, said he had no objection, if parties decide to resolve the issue out-of-court.
Guinness had in its originating motion prayed the court for an order restraining NAFDAC and the AGF from imposing any sanction on it other than as recognised by law and the constitution.
It asked the court for perpetual injunction restraining the respondents from imposing/or continuing to impose any sanction whatsoever on it.
The applicant sought a declaration that NAFDAC refused to grant it an opportunity to be heard in relation to the allegation.
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 N1billion fine pending the hearing and determination of the suit.
The matter has been adjourned till February 8 for mention.
