Counterfeit and Fake Drugs and Unwholesome Processed Food (Miscellaneous Provision) Act (Amendment) Bill, 2015 - LawPavilion Blog (2024)

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INTRODUCTION:

The Senate, on Thursday, November 3, 2016 passed into law Counterfeit and Fake Drugs and Unwholesome Processed Food (Miscellaneous Provision) Act 2004 LFN (Amendment) Bill, 2015 (S.B. 55) after it scaled through the third reading stage. The Bill was sponsored by Sen. Biodun Olujimi (Ekiti South).

According to its long title, the bill is for an Act to amend the counterfeit and fake drugs and unwholesome processed foods (Miscellaneous Provisions) Act Laws CAP C34 Laws of the federation and for other matters connected therewith, 2015.

The 4-sectioned bill seeks to amend three of the sections of the principal Act. The high level of fake and counterfeit drugs circulation in Nigeria is a matter of great concerns as this has consistently been a source of embarrassment to our health care providers and eroded the confidence of the public in the health delivery system with the rate of treatment failures often experienced in most health care centres in the country.

She said the business of fake and counterfeit drugs has been growing in the country because the law put in place to check the spread is weak. She said the regulatory agency on drugs, NAFDAC, ought to have been empowered to enable it to carry out its responsibilities with theability to impose stiffer penalties on offenders.

As the sponsor of the bill said, fake and counterfeit drugs are the highest weapon of terrorism against public health in Nigeria given its tendency to ‘kill the masses’. “The Weakness of the law breeds lawlessness, resulting in impunity, oppression, exploitation and violation of human rights regarding the case of drugs counterfeit.

In his words: “Perpetrators of counterfeit drugs feel that there areno punitive laws and also they could easily manoeuvre their wayeach time they were caught and go free, but it is time we introduce strict punishment,” he said.

This is a welcomenews, long overdue, a lot of people die every day because of fake drugs. People who produce or knowingly sell fake drugs are murderers. This bill if implemented will deter people from indulging in health risk business.For years, Nigeria has been a dumping ground for fake drugs, what we are saying is that we want to put a stop to this.

SYNOPSIS OF THE BILL:

Section 1 identifies The Counterfeit and Fake Drugs and Unwholesome Processed Foods (Miscellaneous Provisions) Act Cap C34 Laws of the Federation 2004 as the Act sought to be amended by this bill.Section 2 of the bill seeks to amend Section 3 of the Principal Act by substituting for the existing Subsection (1) the following new subsection (1):

(1) Any person who commits an offence under:

(a) Section 1 of this Act is liable on conviction To Life Imprisonment.

(b) Section 2 (1) of this Act, is liable on conviction to a fine not exceeding N2,000,000 or imprisonment for a term of not less than 4 Years or to both such fine and imprisonment.

Section 3 seeks to amend section 10 of the principal Act.

3. (a) Section 10 of the Principal Act is amended by substituting for the existing Section 10 the following new Section (10): Any drug, poison or unwholesome processed food products seized by a Task Force established by this Act shall be forfeited to the Federal Government and shall be Destroyed By The Agency.

3. (b) Section 10 is amended by inserting immediately after the existing Section 10 the following new sections 10A and 10B:

10A-(1) A person convicted of an offence under this Act shall forfeit to the Federal Government all the assets, money in bank and properties which may have been acquired with the proceeds of the crimes;

(2) For the avoidance of doubt and without any further assurance than this Act; all the properties of a person convicted of an offence under this Act and shown to be derived or acquired from such illegal act shall be forfeited to the Federal Government.

(3) Where a person is arrested for an offence under this Act, the Agency shall immediately trace and attach all the assets, money in bank and properties acquired as a result of such illegal act and shall thereafter cause to be obtained an interim order by the court.(4) Where:

(a) The assets, money in bank or property of any person arrested for an offence under this Act has been seized; or

(b) any assets, money in bank or property has been seized by the Agency under this Act, the Agency shall cause an application to be made to the Court for an interim order forfeiting the money in bank or property concerned to the Federal Government and the Court shall if satisfied that there is prima facie evidence that the property concerned is liable to forfeiture, make an interim order forfeiting the money in the bank or property to the Federal Government.

(5) Where an arrested person is convicted of an offence under this Act, the Agency or any authorized officer shall apply to the Court for the order of confiscation and forfeiture of the convicted persons’ assets, money in bank and properties acquired or obtained as a result of the crime already subject to an interim under this Act.

(6)(a) A copy of every final order forfeiting the asset, money in bank and property of a person convicted under this Act shall be forwarded to the Agency;

(b) Upon receipt of a final order pursuant to this section, the Secretary to the Agency shall take steps to dispose of the property concerned by sale or otherwise and where the property is sold, the proceeds thereof and the money in bank shall be paid into the Consolidated Revenue Fund of the Federation.

Provided a “Victims Compensation Fund” shall be created from which victims of crimes under this Act shall be compensated from.

(c) Where any part of the property included in a final order is money in a bank account or in the possession of any person, the Agency shall cause a copy of the order to be produced and served on the manager or any person in control of the head office or branch of the bank concerned and that manager or person shall forthwith pay over the money to the Agency without any further assurance than this Act and the Agency shall pay the money received into the Consolidated Fund of the Federation and the Victims Compensation Fund.

(7)(a) Where a person is discharged or acquitted by a court of an offence under this Act, the Court may make an order of revocation or confirmation as the case may be, of an interim order made pursuant to this Act whichever order is considered just, appropriate or reasonable within the circ*mstances; (b) Where an interim order is revoked by a court under paragraph (a) of this section, all assets, money in bank and properties of the person concerned shall be released to him by the Agency.

10B. The Minister may with the approval of the president make rules and regulations for the effective implementation of the provisions of this Act including the percentage to be paid into the victim’s Compensation Fund, the procedure for its operation and for the disposal or sale of any property or assets forfeited pursuant to this Act.

Section 4 is the citation section.

Succinctly put, the sections sought to be amended are sections 3 and 10 of the principal Act.

The Initial Provision(s)

Section 3 (1) Any person who commits an offence under- (a) section 1 of this Act, is liable on conviction to a fine not exceeding N500,000 or imprisonment for a term of not less than five years or more than fifteen years or to both such fine and imprisonment;(b) section 2 (1) of this Act, is liable on conviction to a fine not exceeding N500,000 or imprisonment for a term of not less than two years or to both such fine and imprisonment.

Section 10 Any drug, poison or unwholesome processed food products seized by a Task Force established by this Act shall be forfeited to the Federal Government and shall be dealt with in such manner as the Minster may, from time to time, determine.

Deductions from the proposed amendments

a. Sterner Punishment

Whereas anyone

(a) produces, imports, manufactures, sells, distributes or is in possession of; or

(b) sells or displays for the purpose of sale; or

(c) aids or abets any person to produce, import, manufacture, sell, distribute or display for the purpose of sale, any counterfeit, adulterated, banned or fake, substandard or expired drug or unwholesome processed food, in any form whatsoever, commits an offence under this Act and shall, accordingly, be punished as specified in this Act. Culpable of importing, producing and distributing counterfeit and fake drugs, as well as unwholesome processed foods in the country under the principal Act attracts a fine not exceeding N500,000 or imprisonment for a term between five and fifteen years or to both such fine and imprisonment; now attracts life imprisonment (without an option of fine).

While the offence of…2 (1) Any person who-

(a) hawks or sells; or

(b) displays for the purpose of sale; or

(c) aids or abets any person to hawk, sell, display for the purpose of sale.

Any drug or poison in any place not duly licensed or registered by the appropriate authority, including any market, kiosk, motor park, roadside stall or in any bus, ferry or any other means of transportation, is guilty of an offence under this Act and shall, accordingly, be punished as specified in this Act. Which was originally punishable by N500,000 or imprisonment for a term of not less than two years or to both such fine and imprisonment now attracts a fine not exceeding N2,000,000 or imprisonment for a term of not less than 4 Years or to both such fine and imprisonment.

In addition to the forfeiture of any drug, poison or unwholesome processed food products seized by a Task Force in compliance with the Act, the new bill is proposing in its 10A, that a person convicted of an offence under this Act shall forfeit to the Federal Government all the assets, money in bank and properties which may have been acquired with the proceeds of the crimes.

Also, as opposed to the open-ended way (in such manner as the Minster may, from time to time, determine) of dealing with drug, poison or unwholesome processed food products seized by the Task Force under section 10 of the principal Act, such drug, poison or unwholesome processed food products are now to be Destroyed By The Agency.The Bill also provides for disposal of proceeds of crime under the Act by NAFDAC and payment of the proceeds into the victims compensation fund.

b. Creation Of “Victims Compensation Fund”

10A (3) empowers the Agency to trace and attach all the assets, money in bank and properties acquired as a result of such illegal act and thereafter apply for an interim order of forfeiture in respect of the money in bank or property concerned to the Federal Government by the court. Upon conviction, the Agency or any authorized officer shall apply to the Court for the order of confiscation and forfeiture of the convicted persons’ assets, money in bank and properties acquired or obtained as a result of the crime already subject to an interim under this Act to be made final. A copy of every final order forfeiting the asset, money in bank and property of a person convicted under this Act shall be forwarded to the Agency.

The Secretary to the Agency shall then take steps to dispose of the property concerned by sale or otherwise and where the property is sold, the proceeds thereof and the money in bank shall be paid into the Consolidated Revenue Fund of the Federation and a “Victims Compensation Fund” shall be created from which victims of crimes under this Act shall be compensated from.

c. Provisions For Implementation Of The Bill

The new section 10B empowers the Minister, with the approval of the president, to make rules and regulations for the effective implementation of the provisions of the Act including the percentage to be paid into the victim’s Compensation Fund, the procedure for its operation and for the disposal or sale of any property or assets forfeited pursuant to this Act. This is to ensure that the time to time implementation and follow up on the provisions of the bill are not left hanging. This ensures effectiveness and accountability.

CONCLUSION:

“Agency” means the National Agency for Food and Drug Administration and Control(NAFDAC)– see Section 12 of the Counterfeit and Fake Drugs and Unwholesome Processed Foods (Miscellaneous Provisions) Act, Cap C34 Laws of the Federation 2004.

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Counterfeit and Fake Drugs and Unwholesome Processed Food (Miscellaneous Provision) Act (Amendment) Bill, 2015 - LawPavilion Blog (2024)

FAQs

Which control of counterfeit and fake drugs and unwholesome processed foods miscellaneous provisions is contained in? ›

Counterfeit and Fake Drugs Unwholesome processed Foods (Miscellaneous Provision) Act Cap. C. 34 LFN 2004. This law prohibits the sale of counterfeit, fake drugs and unwholesome processed foods.

What is the Republic Act 8203 Special Law on counterfeit drugs? ›

Republic Act 8203 or the Special Law on Counterfeit Drugs defines counterfeit medicines, declares prohibited acts, identifies liable parties, and imposes administrative sanctions and penalties involved.

What is the punishment for selling fake drugs in Nigeria? ›

Penalties

(b) section 2 (1) of this Act, is liable on conviction to a fine not exceeding N500,000 or imprisonment for a term of not less than two years or to both such fine and imprisonment.

What is the meaning of sale of fake drugs? ›

On the other hand, falsified drugs are medical products that "deliberately/fraudulently misrepresent their identity, composition, or source," including authorized drugs that have been stolen and resold, unauthorized drugs that have been repackaged to look like brand-name products, or fake drugs that don't include the ...

What is an example of counterfeit controlled substance? ›

-The Drug Enforcement Administration reports counterfeit prescription pills are sold by criminals on both sides of the border. These pills are sometimes represented as OxyContin, Percocet, Xanax and others, and may contain deadly doses of fentanyl.

What did the Pure Food and Drug Act prohibit? ›

The Pure Food and Drug Act of 1906 prohibited the sale of misbranded or adulterated food and drugs in interstate commerce and laid a foundation for the nation's first consumer protection agency, the Food and Drug Administration (FDA). I have here . . . a number of adulterated articles.

What are considered counterfeit drugs? ›

The FDA describes the counterfeit medicines as follows: “Counterfeit medicine is fake medicine. It may be contaminated or contain the wrong or no active ingredient. They could have the right active ingredient but at the wrong dose. Counterfeit drugs are illegal and may be harmful to your health” (FDA, 2019).

What is the Republic Act 7394? ›

7394 was enacted primarily to protect the consumers against hazards to health and safety, and against deceptive, unfair and unconscionable sales acts and practices.

What is illegal counterfeit? ›

To counterfeit means to imitate something authentic, with the intent to steal, destroy, or replace the original, for use in illegal transactions, or otherwise to deceive individuals into believing that the fake is of equal or greater value than the real product.

What is the punishment for selling fakes? ›

If convicted of Penal Code 350 selling, manufacturing, possessing for sale of counterfeit goods as a felony, it carries the following penalties: 16 months, two or three years in a county jail. A fine up to $500,000 for individuals. A fine up to $1,000,000 for a business.

What are fake and adulterated foods and goods? ›

MEANING OF FAKE AND ADULTERATED GOODS

Fake and adulterated goods are goods or products made with the intention to be sold as original and often mixed with materials of inferior and harmful quality.

What is the illegal trade of counterfeit goods? ›

Counterfeiting is an infringement of copyright, trademarks, design rights and patents of an intellectual property's owner. The activity includes the illegal trade of common consumer goods, business-to-business products, IT goods and luxury items.

What are the 4 categories of falsified medicines? ›

The World Health Organization (WHO) defines 'falsified' medical products as those that deliberately and fraudulently misrepresent their identity, composition or source. Four specific types of falsification of medical products can be distinguished: counterfeiting, tampering, theft and illegal diversion.

What are the consequences of counterfeit drugs? ›

Failure to cure or prevent future disease, thereby increasing mortality, morbidity and the prevalence of disease. Contributing to the progression of antimicrobial resistance and drug-resistant infections. A loss of confidence in health care professionals, health programmes and health systems.

What is the difference between counterfeit and fake? ›

Fake is a term used to connote some thing which is not real or does not conform to its originality. While, counterfeit is a legal term used to describe something copied illegally concerning intellectual property or properties.

What federal agency regulates food and drugs? ›

The Food and Drug Administration (FDA) is responsible for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, our nation's food supply, cosmetics, and products that emit radiation.

What agency regulates the purity and safety of foods drugs and cosmetics? ›

Presently, the FDA regulates more than $1 trillion worth of products on an annual basis. The FDCA continues to influence the FDA's mission to protect the interests of public health by helping to ensure the security, safety, and efficacy of food, drugs, medical devices, and cosmetics.

What department enforces pure food and drug laws? ›

The United States Food and Drug Administration (FDA) was first created to enforce the Pure Food and Drug Act of 1906. In this capacity, the FDA is charged with protecting the health of the US public, to ensure the quality of its food, medicine, and cosmetics.

What are the commodities over which the Food Drug and Cosmetic Act gave authority to the FDA? ›

It regulates all foods and food ingredients introduced into or offered for sale in interstate commerce except for meat, poultry and some egg and catfish (which are regulated by USDA); ensures the safety and effectiveness of all drugs, biological products (including blood, vaccines and cellular and gene therapy products ...

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