*Response By Ogun State
Zhongshan, the Chinese company at the centre of a dispute with the Nigerian government over the seizure of three presidential jets, has announced readiness with the government.
The company’s statement comes after a French court authorized the seizure of the three presidential jets linked to the Federal Government of Nigeria. The court order prohibits the jets’ movement, sale, or purchase until Zhongshan receives $74.5 million awarded to the company.
According to Premium Times, it was reported that the company, Zhongshan on Thursday, 15th August 2024 sent a statement emphasised its confidence in the legal process and the arbitral ruling in its favour.
Zhongshan said it has only ever sought to assert its rights under international law and is confident in its case.
The statement reads “Zhongshan has only ever sought to assert its rights under international law and is confident in its case. The independent arbitral panel found unanimously in its favor, and courts in multiple countries have upheld the view that the panel’s compensation should be enforced. The French court was fully aware of the facts when it reached its decision.”
“Far from being just a fence, the Ogun Free Trade Zone was featured as a significant international investment by the Economist Intelligence Unit.
“Zhongshan has for a long time been ready to enter serious negotiations with the federal government of Nigeria to settle this case and still awaits an indication that the government is equally willing,” the statement said.
Recall the Presidency, on Thursday, said Zhongshan Fucheng Industrial Investment Co. Limited is trying to arm-twist the Nigerian government to take over offshore assets of the federal government of Nigeria through subterfuge.
Bayo Onanuga, special adviser to the president on information and strategy, explained that the Federal Government is not under any contractual obligation with the company.
Onanuga, in a statement, said the case in which Zhongshan is trying to use every unorthodox means to strip Nigeria’s offshore assets is between the company and the Ogun State government.
He noted that the federal government is fully aware of efforts being made by the Ogun State Government to reach an amicable resolution on the matter.
“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,” Onanuga said.
He revealed that as at the time 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 is 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 in foreign jurisdictions.
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Response by Ogun State
Presidential aircraft: Ogun moves to vacate seizure order, faults fraudulent legal process by Zhongashan
Ogun State Government, on Thursday, 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 7th March and 2nd August, 2024.
It would be recalled that a Chinese company, Zhongshan Fucheng Industrial Investment Co. Ltd, had sought several orders from the court over an aborted underlying contract between the company and Ogun State Government, which was initiated in 2007.
In a statement signed by the Special Adviser to the Governor on Media and Strategy, Hon. Kayode Akinmade, the 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 whole 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 counsels 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, together with the Federal Government, had already taken immediate action to ensure that those provisional attachments are lifted quickly, even as it accused the company of reneging on the earlier discussion for an amicable resolution of the case.
It 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 said: “On 14 August 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 7 March 2024 and 12 August 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, to stand.
“Accordingly, and based on erudite legal advice, this Administration resolved to resist the enforcement of the award. The resistance was successful in 8 different jurisdictions. Currently, there are pending appeals against recognition orders issued in both the US and UK,” the statement read.
