The Federal Government has raised concerns over an attempt by Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese firm, to seize Nigeria’s presidential jets and other offshore assets through a court case in Paris, France.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated on Wednesday that the firm is pursuing a fraudulent claim against the Nigerian state, similar to the PI&D case in the UK.
According to Onanuga, the case was against Zhongshan Fucheng Ltd and the Ogun State government regarding a 2007 contract between the company and the State Government to manage a free-trade zone.
He said the dispute which has been resolved through the Nigeria’s judicial system is now been wrongly tried in Paris, with Zhongshan engaging in “unorthodox” means to strip Nigeria off its assets overseas through subterfuge.
According to Onanuga, 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
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.
“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.
“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,” he said.
Chinese Firm Misleading Paris Court
In addition, Onanuga said the Chinese company is misleading the Judicial Court in Paris, France, by withholding vital information about the case from the court.
He also alleged that the 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.
Onanuga said is similar to the PI &D case with foreign entities trying to defraud Nigeria of its assets through unscrupulous means.
“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,” Onanuga added.
Details about the Case
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 Ogun 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.
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.
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
