Alleged $74.5m debt: Presidency, Chinese firm in tug of ownership over presidential jets abroad
…Ogun Govt flays seizure, says Zhongshan’s actions ‘fraudulent’
…An embarrassing leadership failure — Obi blasts FG
Fresh concerns have arisen following the judgement of a Paris court ordering the seizure of three jets owned by the Government of Nigeria.
The aircrafts include a Dassault Falcon 7X, a Boeing 737, and an Airbus A330—had either been part of the Nigerian presidential fleet or were recently purchased by the government.
The report says the Dassault Falcon 7X was undergoing maintenance at Paris-Le Bourget airport, while the Boeing 737 and Airbus A330 were stationed at Basel-Mulhouse International Airport for similar reasons.
The enforcement judge at the Paris Judicial Court granted the company authority to seize the aircraft, stating in the court order, “This protective seizure will take place to secure and preserve the claim arising from the arbitration award dated 26 March 2021, made by an ad hoc arbitral tribunal.”
The Court further ordered that the aircraft be secured in such a way as to prevent their movement, saying, “The aircraft… will be positioned so that the cockpit faces a wall or building or in any other way that prevents it from taking off again autonomously.”
The report further adds that Zhongshan has taken similar actions in the United Kingdom, with buildings owned by the Nigerian government in Liverpool seized under the orders of a UK court in relation to the same unresolved dispute.
Reacting to the court judgement, the Presidency has denounced the attempt by Chinese company Zhongshan Fucheng Industrial Investment Co. Limited to seize Nigerian government-owned assets abroad as “fraudulent.”
Special Adviser to the President on Information and Strategy, Bayo Onanuga on Thursday, stated that Zhongshan obtained two orders from the Judicial Court of Paris without proper notice being served on the Federal Government of Nigeria and Ogun State Government.
Onanuga explained that the dispute stems from a 2007 contract between Zhongshan and Ogun State Government to manage a free trade zone, which was revoked in 2015. He emphasised that the Federal Government is not under any contractual obligation with the company.
The Federal Government is working with the Ogun State government to discharge the order in Paris immediately and remains open to a “reasonable settlement option” but denounces what it sees as arm-twisting tactics by the Chinese company.
Onanuga said, “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.”
According to him, an arbitration panel later awarded over $60 million against the Federal Government of Nigeria, a decision the government was contesting.
The Presidency likened the situation to the controversial P&ID case, suggesting that Zhongshan was attempting to “defraud Nigeria with the collaboration of some bureaucrats.”
The government asserted that Zhongshan has no valid grounds for demanding restitution and has failed in similar attempts to enforce judgements in the UK and USA.
He stated that the federal government was working with the Ogun State government to discharge the order in Paris immediately.
He emphasised that Nigeria will “always work to protect our national assets from predators and shylocks who masquerade as investors.”
Onanuga also revealed that settlement discussions between Ogun State and Zhongshan broke down in September 2023, with the company insisting on full payment of the arbitration debt.
…Ogun Govt flays seizure, says Zhongshan’s actions ‘fraudulent’
Likewise, the Ogun State government has condemned the seizure of three Nigerian government-owned aircraft in France by Zhongshan Fucheng Industrial Investment Co. Ltd. (Zhongshan), describing the company’s actions as “fraudulent” and “misleading.”
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 a 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.
…An embarrassing leadership failure — Obi blasts FG
In the same vein, Labour Party’s 2023 presidential candidate, Peter Obi, has slammed the Federal Government over the Presidential Jets seizure saga, describing it as “embarrassing leadership failure.”
Obi took to his social media handle to express his disappointment over the legal case involving the FG, Ogun State government, and a Chinese firm in connection to the seized Presidential jets.
“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,” Obi wrote.
He added, “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.”
Obi questioned the shadiness of the deal and demanded transparency from the Federal Government over the case in French Court.
“The government at all levels should be accountable to the people, meaning that they must be very transparent in all their dealings,” he said.
