ABUJA (Sundiata Post) – The Presidency has described a French court’s decision to impound three presidential jets linked to the Federal Government as a fraudulent and deliberate attempt by Zhongshan Fucheng Industrial Investment Co. Limited to embarrass President Bola Tinubu and defraud Nigeria.

The order for the seizure of the three Nigerian government-owned aircraft was given in France by the Judicial Court of Paris on March 7 and August 2. It followed a long-standing dispute between Zhongshan and the Ogun State government, which revoked the company’s contract in 2016 and an independent arbitral tribunal chaired by the former president of the UK Supreme Court awarded Zhongshan about $74.5 million in compensation.

In a statement titled: “CHINESE COMPANY’S FRAUDULENT ATTEMPT TO STRIP NIGERIA’S ASSETS ABROAD”, the Presidency acknowledged ongoing efforts by the Ogun State Government to resolve the dispute with Zhongshan Fucheng Industrial Investment Co. Limited.

The government asserted that Zhongshan lacked a legitimate basis for restitution regarding a 2007 contract for managing a free-trade zone, especially since the company only constructed a perimeter fence before the contract was revoked in 2015.

Despite the Attorney-General’s collaboration with Ogun State for a resolution, the Presidency noted that Zhongshan has obtained court orders in Paris without notifying either the Federal or Ogun State governments, complicating the situation further.

It likened Zhongshan’s tactics to seize government assets to the P&ID case. The government claimed the company misled the Court in Paris regarding the nature of the presidential jets it seeks to attach, arguing that the assets are protected by diplomatic immunity.

The Presidency said Zhongshan’s attempts to enforce its judgment have previously failed in the UK and the USA. It said the Nigerian government was actively collaborating with Ogun State to challenge a recent order from a French court allowing Zhongshan Fucheng Industrial Investment Co. Limited to seize Nigerian assets and assured citizens that they were committed to protecting national assets from what they describe as predatory tactics by the Chinese company.

The statement 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 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.

“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 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.

“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.

“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 the 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.”

In its reaction, Ogun State Government faulted the judicial process that led to the provisional attachment of the three Nigerian government-owned.

In a statement by the Special Adviser to the Governor on Media and Strategy, Kayode Akinmade, the 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. The statement said: “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.”

•Background

A contract between Ogun State and Zhongshan to manage a free-trade zone was executed in 2007. The parties entered into a dispute in 2015, and arbitration began in 2016.

By 2019, the arbitration hearing had been concluded. The Arbitral Panel awarded over 60 million USD against the Federal Government of Nigeria (FGN), a co-defendant, when all Zhongshan had done was build a perimeter fence around the free-trade zone.

Based on legal advice, the state government resolved to resist the enforcement of the award. The resistance was successful in 8 different jurisdictions. There are pending appeals against recognition orders issued in both the US and UK.

The 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.

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.

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.