The Presidency yesterday moved against Chinese firm, Zhongshan Fucheng Industrial Investment Company, over the seizure of three presidential jets on the order of the Judicial Court of Paris, France.
It also dismissed court orders against Ogun State Government, which led to the seizure of the three presidential jets, as an attempt to strip Nigeria of her assets.
Consequently, both the federal and Ogun State governments are making frantic efforts to vacate the orders obtained by the Chinese company on March 7, 2024, and August 12, 2024, respectively, with a view to securing the release of the planes.
This is reminiscent of the order obtained by Process and Industrial Development Limited, P&ID, in London to secure $11 billion judgment debt from Nigeria, which the Federal Government eventually got vacated.
Background to the Zhongshan Fucheng Case
A contract between Ogun State and Zhongshan to manage a free-trade zone was executed in 2007 but the parties entered into a dispute in 2015, and arbitration began in 2016.
By 2019, it was learned that the arbitration hearing had been concluded, as the Arbitral Panel awarded over $60 million against the Federal Government of Nigeria, a co-defendant, when all Zhongshan had done was build a perimeter fence around the free-trade zone.
Based on legal advice, Ogun State Government was said to have resolved to resist enforcement of the award. It was also gathered that the resistance was successful in eight different jurisdictions, as there are pending appeals against recognition orders issued in both the US and UK.
Ogun State, it was learned, also engaged Zhongshan in settlement discussions on reasonable terms. The last meeting, which held in September 2023 in London, lasted for three days and was attended by several officials of Ogun State, including Governor Dapo Abiodun and the Attorney-General/Minister of Justice, Prince Lateef Fagbemi.
Zhongshan’s initial reasonable readiness to consider Ogun State’s offer was surprisingly reversed by the second day when it insisted on government paying the full arbitration debt.
It was learned that this led to a breakdown of the mediation, with parties agreeing to meet again in the first quarter of this year.
In cases similar to the present one, where Zhongshan obtained an ex-parte order, Ogun State successfully set aside the orders, it was learned.
Ogun State has not given up on a reasonable settlement option, with the most recent being a letter sent to Zhongshan last week.
Zhongshan, it was gathered, only responded after obtaining this latest illegal order.
Claiming that the Federal Government was never served any notice of the two cases in the Judicial Court of Paris which gave orders on March 7, 2024, and August 12, 2024, respectively, the Presidency said it is working with Ogun State Government to discharge what it descried as a frivolous order.
FG not under contractual obligation—Onanuga
Special Adviser to the President on Information and Strategy, Bayo Onanuga, who disclosed this in a statement yesterday, said: ‘’The Presidency is aware of the various failed attempts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to take over offshore assets of the Federal Government of Nigeria through subterfuge.
‘’Ogun State Government, on Thursday (yesterday), faulted the judicial process that led to the provisional attachment of three Nigerian government-owned aircraft in France by the Judicial Court of Paris on March 7 and August 2, 2024.
‘’The Federal Government is not under any contractual obligation with the company. The case in which Zhongshan is trying to use every unorthodox means to strip our offshore assets is between the company and Ogun State Government.
“The Federal Government is aware of efforts being made by the Ogun State Government to reach an amicable resolution to the matter.
‘’It must be said without any equivocation that Zhongshan has no solid ground to demand restitution from Ogun State Government, based on facts regarding the 2007 contract between the company and the state government to manage a free-trade zone.
‘’When the contract with Ogun State was revoked in 2015, the company had only erected a perimeter fence on the land earmarked for a free trade zone.
“While the Attorney-General of the Federation and Minister of Justice are working with the Ogun State Government on an amicable resolution, Zhongshan obtained two orders from the Judicial Court of Paris, dated March 7, 2024, and August 12, 2024, without any notice being duly served on the Federal Government of Nigeria and Ogun State Government.
‘’This arm-twisting tactic by the Chinese company is the latest in a long list of failed moves to attach Nigerian government-owned assets to foreign jurisdictions.
“Material facts in the transaction between Ogun State Government and Zhongshan point to another P&ID case in which unscrupulous and questionable individuals falsely present themselves as investors with the sole objective of cheating and scamming governments in Africa.
‘’Undoubtedly, Zhongshan withheld vital information and misled the Judicial Court in Paris into attaching the Nigerian government’s presidential jets, which are on routine maintenance in France.
‘’The use and nature of the presidential jets as assets of a sovereign entity whose assets are protected by diplomatic immunity forbid any foreign court from issuing an order against them.
‘’We are convinced the Chinese company misled the Judicial Court of Paris regarding the use and nature of the assets it seeks to attach and did not fully disclose to the court as required by law.
“This same Chinese company had tried to enforce its questionable judgment in the UK and USA but failed. Like the P&ID case, foreign companies are trying to defraud Nigeria with the collaboration of some bureaucrats.
“Zhongshan appeared to have sold the judgment they got to a venture capitalist seeking to make money by embarrassing the Federal Government and President Bola Tinubu.
“We want to assure Nigerians that the Federal Government is working with Ogun State Government to discharge this frivolous order in Paris immediately.
“Nigerian government will always work to protect our national assets from predators and shylocks who masquerade as investors.
Ogun moves to vacate seizure order, faults fraudulent legal process by Zhongashan
Reacting to the court order yesterday, Ogun State Government faulted the judicial process that led to the provisional attachment of three Nigerian government-owned aircraft in France by the Judicial Court of Paris.
In a statement by the Special Adviser to the Governor on Media and Strategy, Kayode Akinmade, Ogun State Government described the latest development as the new antics by the Chinese company to appropriate Nigerian assets in foreign jurisdictions, as past efforts had continually failed.
The statement described the legal process as nothing but a total charade with fraudulent notion, adding that the company deliberately concealed the litigation from both the Nigerian government and Ogun State, as well as their legal counsel before hurriedly securing orders of seizure.
It added that the company must have misled the Judicial Court of Paris as to the use and nature of the assets it sought to attach and not made full disclosure to the court as required by law.
According to the statement, Ogun State, alongside the Federal Government, has already taken immediate action to ensure that those provisional attachments are lifted quickly, even as it accused the company of reneging on earlier discussion for an amicable resolution of the case.
The state government also likened the case to that of P&ID, describing it as very unfortunate case of unscrupulous individuals masquerading as foreign investors with the sole aim of defrauding Ogun State and Nigeria at large.
The statement read: “On August 14, 2024, the attention of the Ogun State Government was drawn to the provisional attachment of three Nigerian government-owned aircraft in France by the Chinese company, Zhongshan Fucheng Industrial Investment Co. Ltd. (Zhongshan).
‘’Ogun State also learned of two orders of the Judicial Court of Paris dated March 7, 2024, and August 12, 2024, respectively, both obtained by Zhongshan without notice being duly given to the Federal Government or Nigeria, Ogun State or their legal counsel.
“This is the latest in a series of ill-advised attempts by Zhongshan to attach Nigerian-owned assets in foreign jurisdictions, none of which have to date led to the recovery of any sums from Nigeria.
“Each of the three aircraft is used solely for sovereign purposes and as such are immune from attachment under international and French laws.
“In obtaining the provisional attachments, Zhongshan deliberately withheld information from the Federal Government of Nigeria, Ogun State and their legal counsel.
“Just like the P&ID case, this is another unfortunate case of unscrupulous individuals masquerading as foreign investors with the sole aim of defrauding Ogun State and Nigeria.
“It should be recalled that the underlying contract between Ogun State and Zhongshan was executed in 2007, 12 years before the present administration, for the management of a free-trade zone. The parties entered into a dispute in 2015 with arbitration commencing in 2016.
“By 2019, when the current State Administration took office, the hearing at the arbitration had been all but concluded. The Arbitral Panel awarded over 60 million USD against the Federal Government of Nigeria (FGN) which was a co-Defendant, when all Zhongshan had done was to build a perimeter fence around the free-trade zone. Needless to say, this was a bad/unfair decision.
“The present state administration could not in all good conscience allow such an unconscionable and baseless decision, which would dissipate the commonwealth of the good people of Ogun State.
“Accordingly, and based on erudite legal advice, this administration resolved to resist enforcement of the award. The resistance was successful in eight different jurisdictions. Currently, there are pending appeals against recognition orders issued in both the US and UK.’’
It’s an international embarrassment —Peter Obi
Reacting to the development yesterday, the presidential candidate of Labour Party, LP, in 2023 elections, Mr Peter Obi, described the seizure of aircraft in Nigeria’s Presidential Air Fleet as an international embarrassment.
Obi said the development has exposed Nigeria’s failed leadership and poor attitude to the rule of law in a democracy.
He said: “The trending international news on the seizure of three jets belonging to Nigeria’s Presidential fleet is yet another of many embarrassing things exposing our failed leadership and our attitude to the rule of law, even in a democracy.
‘’It has also exposed multiple dimensions to our leadership failure and our insensitivity to the plight of the growing poor class in our midst.
“The fact that the Federal Government went ahead with the jet deal, despite the cacophonous cry against the purchase of a presidential jet at this time when the people are going through a horrifying economic hardship, shows the insensitivity of this administration.
“Added to it is the embarrassing aspect of our country’s presidential jets being held for contractual breaches arising from yet another dimension of inadequate leadership tidiness.
“I have been loud in my demand over time that government at all levels should be accountable to the people, meaning that they must be very transparent in all their dealings.
‘’Until a court in France prohibits Nigeria from moving or selling these three jets, Nigerians have no iota of information about both the buying and selling of these aircraft.
“It has been done in secrecy. Federal government property, which belongs to the people, is being managed as a personal family asset. Paying as much as $100million for a Presidential jet for a country that is the poverty capital of the world and has more out-of-school children with over 40% food inflation is the height of concern for the people’s feelings.
“This incident has also opened up an aspect of indiscipline that is copiously embedded in our country, which is the abuse and disrespect for the rule of law.
“Here are questions begging for answers: To what extent did Ogun Government follow its agreement with the Chinese firm?
“After the UK court ruling that prohibited some Nigerian buildings in Liverpool, what did both Ogun State and Federal Governments do before the French court action?
“I would like to, therefore, challenge the Federal Government to come clean and transparent on this matter and tell Nigerians how we got to this latest international mess.”
VANGUARD