BREAKING NEWS, Business
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The Guinness Nigeria Plc says there is no legal basis for the N1billion fine the National Agency for Food and Drug Administration and Control, NAFDAC imposed on it
| By Anayo Ezugwu | Nov 30, 2015 @ 01:00 GMT |
IN response to the N1 billion fines levelled against it by the National Agency for Food and Drug Administration and Control, NAFDAC, Guinness Nigeria Plc has said that there was no legal basis for the payment of the fine imposed on it. The company stated this in a letter to the Nigerian Stock Exchange, NSE, in which it informed the bourse of the fine and its position on the developments leading to the imposition of the fine.
In its letter to the NSE, Guinness Nigeria said, “We do not understand the basis for the computation of the administrative charges nor the particular regulations alleged to have been infringed, and had expected that our discussions with NAFDAC would give us better clarity on the issue and hopefully help its resolution.
“We have been advised that there is no legal basis for the demand by NAFDAC for the payment of the said sum and we hope that our engagement with NAFDAC will enlighten the organisation about the correct position.”
Guinness gave an assurance that all of its products conformed to the highest standards of quality. It said the products were produced in line with the globally accepted code of good manufacturing and had been repeatedly certified as such by NAFDAC and the Standards Organisation of Nigeria.
Peter Ndegwa, managing director, Guinness Nigeria, was quoted as saying, “The meticulous and painstaking work, including rigorous quality assurance, that precedes the final production of all our products, has a singular objective: to ensure that our consumers drink products that are healthy and comparable with similar products made by a Diageo facility anywhere else in the world.”
He stressed that the allegations made by NAFDAC related to raw materials in one of the company’s stores, which was not a production facility, adding that the allegations were being taken seriously by the company.
The company, which had operated in Nigeria for more than 60 years, said it had conducted its business in accordance with the country’s laws and regulations, and its parent company, Diageo’s global policies and procedures relating to good manufacturing practices.
NAFDAC has ordered Guinness Nigeria Plc to pay N1 billion as administrative charges for the 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 by Kingsley Ejiofor, head, Investigation and Enforcement, NAFDAC, the regulatory agency 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.
Guinness was also accused of revalidating expired products without authorisation and supervision by NAFDAC, as well as failing to secure the gate of its warehouse as the raw materials used in the production of beer and non-alcoholic beverages by the firm were permanently opened to intrusion and exposure to the elements and rodents, which invariably affect the integrity of the raw materials.
The brewer was also alleged to maintain poor documentation record and not complying with conditions contained in the certificate of validation of the revalidated malt extract, which required the storage of the items in cool and dry place, and elimination of exposure to sunlight.
The letter referenced ENFD/7218/Vol. 1/85 and dated November 9, 2015, states, “In view of the above, you are further required to take the following actions: disclosure of all your warehouses in the country and submission of inventory level of the stock thereof; submit a written voluntary consent of forfeiture for destruction of the expired and revalidated raw materials discovered in your warehouse; and submit a notarised undertaking to comply with all the guidelines, rules, regulations and enactments of the agency, and to refrain from any future violations.”
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