The High Court in Accra (General Jurisdiction) has ordered the Food and Drugs Authority (FDA) to pay Tobinco Pharmaceuticals Ltd a substantial GH¢93,905,760.79 million. This ruling, delivered on July 29, 2024, addresses the unlawful destruction of Tobinco’s unexpired pharmaceutical products.
The conflict dates back to 2014 when the FDA confiscated Tobinco’s imported drugs, alleging they were unwholesome. The FDA’s subsequent actions, including the destruction of these products, were deemed unlawful by the court. In 2019, Tobinco sued the FDA, seeking damages for what it claimed were unjust actions against its business.
Justice Audrey Kocuvie-Tay, who presided over the case, declared that the FDA’s actions, including the wanton destruction of Tobinco’s products without a court order and the illegal lockdown of Tobinco’s warehouses, were unlawful. The court also criticized the FDA’s actions for contributing to the expiration of Tobinco’s products and causing significant damage to the company’s business.
The court’s decision includes:
• GH¢24,003,157.20 for the value of Tobinco’s products that expired due to FDA actions.
• GH¢511,414.35 for expenses related to demurrage.
• GH¢67,300 for costs associated with bonded warehouses.
• Interest payments on these amounts at prevailing bank rates from specific dates.
• GH¢5 million in general damages for misfeasance.
• GH¢1 million in legal costs.
The court emphasized that the FDA’s refusal to register Tobinco’s drugs, the confiscation of its products, and the unlawful prohibition of sales were abuses of statutory power, which directly caused financial loss to Tobinco. This landmark ruling underscores the accountability of regulatory bodies in adhering to legal standards and protecting businesses from unlawful practices.
