High Court orders FDA to pay GH¢93m to Tobinco Pharmaceuticals

The High Court in Accra has ordered the Food and Drugs Authority (FDA) to pay Tobinco Pharmaceuticals Ltd a total of GH¢93,905,760.79 million in compensation for the unlawful destruction of the company’s pharmaceutical products. These products, which had not expired, were seized by the FDA in 2014 on the grounds that they were allegedly unsafe for consumption.

In 2019, Tobinco initiated legal action against the FDA, arguing that the agency’s actions were unlawful and seeking damages. Tobinco’s legal representation was led by Mr Philip Addison of Addison Bright Sloane, a law firm based in Accra.

The case was presided over by Justice Audrey Kocuvie-Tay, who ruled on 29 July 2024 that the FDA’s destruction of Tobinco’s unexpired products was illegal as it had not obtained a court order to justify its actions. The court further stated that the FDA’s subsequent actions, including locking up Tobinco’s warehouses and generating negative media coverage, led to significant losses for the company due to the expiration of products between June 2014 and August 2015.

Justice Kocuvie-Tay also criticised the FDA for banning Bliss GVS Pharma Limited from importing drugs into Ghana without the required Executive Instrument from the Minister of Health. The court found that Tobinco had not imported fake drugs, as alleged by the FDA, and that the agency’s conduct had caused considerable harm to Tobinco’s business.

As a result of these findings, the court ordered the FDA to pay special damages amounting to GH¢24,003,157.20 for the value of expired products, GH¢511,414.35 for demurrage expenses, and GH¢67,300 for costs related to bonded warehouses. Additionally, the court ruled that interest should be applied to these amounts at prevailing bank rates from specific dates in 2015 until full payment is made.

The FDA was also ordered to pay general damages of GH¢5 million and an additional GH¢1 million in costs to Tobinco. These orders were made in recognition of the substantial damage and loss suffered by Tobinco as a result of the FDA’s actions.

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