The presidency is insisting that efforts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited to seize some jets on Nigeria’s Presidential Air Fleet (PAF) is fraudulent and would not thrive.
The Federal government in a Statement on Thursday, August 15, 2024 signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga said the Chinese company in March 7 and August 12, 2024, respectively got two-court authorization from the Judicial Court of Paris to seize assets belonging to Nigerian government including three aircraft belonging to the PAF. The said presidential jets are undergoing routine maintenance in France.
However, Onanuga contends that the use and character of the Presidential jets as assets of a sovereign institution protected by diplomatic immunity precludes any foreign court from obtaining an order against them. It stated that it believes the Chinese corporation "misled" the Judicial Court of Paris about the usage and kind of the assets it desires to attach and failed to explain to the court as required by law.
The Statement is titled ‘Chinese company’s fraudulent attempt to strip Nigeria’s assets abroad.’ “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.
“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 the Ogun State Government.” The statement read in part.
A Court in France had endorsed the appropriation of three Nigerian presidential jets, including a newly purchased Airbus, amid a legal dispute between Zhongshan and the Ogun State Government.The Chinese company claims that the government of Ogun State had breached the contract
Onanuga explained that in 2007 there was a contract signed by Zhongfu, a subsidiary of Chinese investment company Zhongshan Fucheng Industrial Investment, and the government of Ogun State to develop a free trade area. The contract stated that Zhongfu was to own 60 per cent of the joint venture under the terms of the deal.He added that when the contract was revoked in 2015, the company had only erected a perimeter fence on the designated land.
Meanwhile, Zhongfu had alleged that three years later, Ogun Government had backed out of the deal and wanted to take over the “significant” Chinese investment in the free trade zone.
In 2018, Zhongshan announced arbitration procedures against Nigeria. A three-person arbitration panel in London granted the business $70 million in damages, which will be refunded by the Nigerian government in 2021. The compensation has grown to almost $81 million with interest.
Onanuga further said after legal consultations, Ogun State Government resolved to resist the enforcement of the award adding that the resistance was successful in eight different jurisdictions.
According to him the government of Ogun also engaged the Chinese company in settlement discussions on reasonable terms. He added that the last meeting, 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.
According to the Presidency, Zhongshan's initial fair willingness to consider Ogun State's offer was unexpectedly reversed on the second day, when it demanded that the government pay the entire arbitration bill.
“This led to a breakdown of the mediation, with parties agreeing to meet again in the first quarter of this year.
“Since then, Zhongshan has been evasive. Instead, it embarked on a series of enforcement proceedings, which the legal team appointed by the FGN and Ogun State successfully opposed.
“In cases similar to the present one, where Zhongshan obtained an ex-parte order, Ogun State successfully set aside the orders,” the statement read.
The presidency said “Ogun State has not given up on a reasonable settlement option, with the most recent letter sent to Zhongshan last week. Zhongshan only responded after obtaining this latest illegal order.”
Therefore “It must be said without any equivocation that Zhongshan has no solid ground to demand restitution from the Ogun State Government based on the facts regarding the 2007 contract between the company and the State Government to manage a free-trade zone.
“This arm-twisting tactic by the Chinese company is the latest in a long list of failed moves to attach Nigerian government-owned assets in foreign jurisdictions,” said Onanuga.
“We want to assure Nigerians that the Federal Government is working with the Ogun State Government to discharge this frivolous order in Paris immediately. He added
READ MORE: https://nigerdeltaconnect.com/nigerias-presidential-jets-reportedly-seized-overseas
