The High Court in Accra in a historic verdict has ordered the Food and Drugs Authority (FDA) to pay Tobinco Pharmaceuticals over GH¢93 million in damages for the unlawful destruction of its pharmaceutical products.
This decision follows a protracted legal battle that began in 2014 when the FDA seized and destroyed pharmaceutical products belonging to Tobinco, claiming they were unsafe for public consumption.
Tobinco argued that these actions were not only unlawful but also caused significant harm to their business.
The case, presided over by Justice Audrey Kocuvie-Tay, concluded on July 29, 2024, with a scathing critique of the FDA’s actions.
The court found that the FDA did not secure a court order before destroying the products and that this overreach led to substantial financial losses for Tobinco.
Between June 2014 and August 2015, the company’s products, worth millions, expired due to the FDA’s actions, further compounding their financial woes.
The court’s ruling also addressed the FDA’s broader conduct, including a ban on Bliss GVS Pharma Limited, a partner of Tobinco, from importing drugs into Ghana without the necessary legal backing from the Ministry of Health.
The court made it clear that Tobinco had not imported fake drugs, as alleged by the FDA, and that these accusations had unjustly tarnished the company’s reputation.
In light of these findings, the court ordered the FDA to pay Tobinco over GH¢24 million for the expired products, alongside other financial compensations that included demurrage and costs related to bonded warehouses.
Additionally, the FDA was instructed to pay general damages of GH¢5 million and another GH¢1 million to cover legal costs, with interest accruing from specific dates in 2015 until full payment is made.
According to experts, this ruling has a dual impact, as it serves as a strong rebuke to regulatory overreach, emphasizing the relevance of adhering to due process, and also underscores the court’s devotion to holding public agencies accountable for actions that harm the private sector.
