Accra: The Court of Appeal in Accra has ordered Ghana's Food and Drugs Authority (FDA) to pay over GHS30 million in damages to Tobinco Pharmaceuticals for the unlawful confiscation and destruction of the company's products. The decision came as a significant legal victory for Tobinco, following years of legal battles over the actions of the FDA.
According to Ghana Web, the court, in a unanimous decision, upheld the decision of the High Court, which had initially ordered the payment of damages and costs to Tobinco Pharmaceuticals. The appellate court found that the actions taken by the FDA, under the leadership of its former Chief Executive Officer (CEO), Dr. Stephen Opuni, were unlawful and had caused significant harm to Tobinco's business and reputation. The court ruled that the FDA's actions amounted to misfeasance in public office.
The ruling affirmed the High Court's decision dated November 17, 2024, which awarded special damages of GHS24,581,871.55, general damages of GHS5,000,000.00, and costs of GHS1,000,000.00 to Tobinco Pharmaceuticals. Additionally, the Court of Appeal ordered the FDA to pay costs of GHS50,000.00.
Background:
The legal dispute dates back to 2014, when the FDA confiscated pharmaceutical products imported into Ghana by Tobinco, alleging that they were unwholesome. This led to a protracted legal battle, with Tobinco suing the FDA in 2019, seeking compensation for the damages caused by the FDA's actions.
In 2024, the High Court in Accra (General Jurisdiction) ruled in favor of Tobinco, ordering the FDA to pay millions of Ghana cedis in damages. The court found that the FDA's wanton destruction of Tobinco's unexpired products without a court order was unlawful. Furthermore, the court declared that the FDA's actions, including the unlawful lock-up of Tobinco's warehouses and negative media publicity, resulted in the massive expiration of Tobinco's products between June 2014 and August 2015.
The High Court also stated that the FDA's prohibition of the sale of Tobinco's products without an Executive Instrument from the Minister of Health was unlawful. Moreover, the court found that the banning of Bliss GVS Pharma Limited from importing drugs into Ghana by the FDA and its CEO without an Executive Instrument was similarly unlawful.
The judge concluded that Tobinco did not import fake drugs into the Ghanaian market and that the FDA's unlawful conduct caused substantial damage and loss to Tobinco's business.