We are convinced the Chinese company misled the Judicial Court of Paris
The Presidency on Thursday said the efforts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to take over some jets on Nigeria’s Presidential Air Fleet are fraudulent.
This followed a court order by the Judicial Court of Paris to seize three aircraft belonging to the PAF.
But the Presidency argued that 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.
It said it is convinced that 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.
A statement signed by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, on Thursday read, “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 is titled ‘Chinese company’s fraudulent attempt to strip Nigeria’s assets abroad.’
A French Court had sanctioned the seizure of three Nigerian presidential jets, including a newly purchased Airbus, amid a legal dispute between Zhongshan and the Ogun State Government.
The Chinese company had alleged a breach of contract by Nigeria. It dates back to a 2007 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.
Zhongfu was to own 60 per cent of the joint venture under the terms of the deal.
However, three years later, Zhongfu alleged that Ogun had backed out of the deal and wanted to take over the “significant” Chinese investment in the free trade zone.
The company said a “campaign of illegal acts” against it ultimately forced it out of the agreement.
In 2018, Zhongshan initiated arbitration proceedings against Nigeria. A three-person arbitration panel in London awarded the company $70m in damages to be paid by the Nigerian government in 2021. The award has grown to about $81m with interest.
By this time, however, “all Zhongshan had done was build a perimeter fence around the free-trade zone,” the Presidency said.
Based on legal advice, the Ogun State Government resolved to resist the enforcement of the award.
The resistance was successful in eight different jurisdictions. There are pending appeals against recognition orders issued in both the US and UK.
Ogun State also engaged Zhongshan in settlement discussions on reasonable terms.
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 reasonable readiness to consider Ogun State’s offer was surprisingly reversed by the second day when it insisted on the government paying the full arbitration debt.
“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.”
Based on the foregoing, the Federal Government said it is fully aware of efforts being made by the Ogun State Government to reach an amicable resolution on the matter.
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.
“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,” the presidency insisted.
It said 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 in foreign jurisdictions,” said Onanuga.
Citing recent legal battles between the FG and foreign entities, Onanuga said the material facts in the transaction between the 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 undercutting and scamming Governments in Africa.
He explained further, “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.
“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.”
The Presidency accused Zhongshan of selling 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 the Ogun State Government to discharge this frivolous order in Paris immediately.
