The state government accused the Chinese company of backing out of earlier discussions aimed at an amicable resolution of the case.
A file photo of Ogun State Governor, Dapo Abiodun. Twitter/@dabiodunMFR
On Thursday, the Ogun State Government criticized the process that led to the provisional seizure of three Nigerian-owned aircraft in France by the Judicial Court of Paris. In a statement signed by the Special Adviser to the Governor on Media and Strategy, Kayode Akinmade, the Ogun State Government described the development as a new tactic by a Chinese company to seize Nigerian assets in foreign jurisdictions after previous efforts had repeatedly failed.
The Chinese company, Zhongshan Fucheng Industrial Investment Co. Ltd, sought court orders due to a terminated contract with the Ogun State Government that originated in 2007.
The state government condemned the legal proceedings as a fraudulent charade, accusing the company of deliberately concealing the litigation from both the Nigerian government and Ogun State, as well as their legal counsel, before hastily securing the seizure orders.
The statement further alleged that Zhongshan must have misled the Judicial Court of Paris regarding the use and nature of the assets it sought to attach, failing to make full disclosure to the court as required by law. The Ogun State Government, alongside the Federal Government, has already taken immediate steps to ensure that these provisional attachments are swiftly lifted, while also accusing the company of reneging on previous discussions for an amicable resolution of the dispute.
The government likened this case to that of P&ID, calling it an unfortunate instance of unscrupulous individuals posing as foreign investors with the intent to defraud Ogun State and Nigeria as a whole.
“This is the latest in a series of misguided attempts by Zhongshan to seize Nigerian-owned assets in foreign jurisdictions, none of which have yet resulted in the recovery of any funds from Nigeria.
“Each of the three aircraft is used solely for sovereign purposes and is therefore 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 instance of unscrupulous individuals masquerading as foreign investors with the sole aim of defrauding Ogun State and Nigeria,” the statement read.
Read the full statement:
OUR STAND ON ZHONGSHAN’S SUBTERFUGE AND PARIS COURT’S SEIZURE ORDER – OGUN STATE GOVERNMENT
On August 14, 2024, the Ogun State Government was made aware of 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 from the Judicial Court of Paris dated March 7, 2024, and August 12, 2024, respectively, both obtained by Zhongshan without proper notice being given to the Federal Government of Nigeria, Ogun State, or their legal counsel. This is the latest in a series of misguided attempts by Zhongshan to attach Nigerian-owned assets in foreign jurisdictions, none of which have yet resulted in the recovery of any funds from Nigeria.
Each of the three aircraft is used exclusively for sovereign purposes and, therefore, is immune from attachment under both international and French law. In obtaining the provisional attachments, Zhongshan deliberately withheld information from the Federal Government of Nigeria, Ogun State, and their legal counsel.
It is also apparent that Zhongshan misled the Judicial Court of Paris regarding the use and nature of the assets it sought to attach, failing to make full disclosure as required by law.
Ogun State, in collaboration with the Federal Government of Nigeria, has taken swift action to ensure that these provisional attachments are lifted without delay. This situation mirrors the P&ID case, reflecting another instance of unscrupulous individuals posing as foreign investors with the sole aim of defrauding Ogun State and Nigeria.
It is important to recall that the contract between Ogun State and Zhongshan was executed in 2007, 12 years before the current administration, for the management of a free-trade zone. A dispute arose in 2015, with arbitration commencing in 2016.
By the time the current administration took office in 2019, the arbitration hearing was nearly concluded. The Arbitral Panel had awarded over $60 million against the Federal Government of Nigeria (FGN), which was a co-defendant, despite Zhongshan only having constructed a perimeter fence around the free-trade zone. This was clearly an unjust decision.
The current administration could not in good conscience allow such an unfair and baseless decision, which would deplete the resources of the people of Ogun State, to stand. Accordingly, based on expert legal advice, the administration resolved to resist the enforcement of the award. This resistance was successful in eight different jurisdictions, and there are ongoing appeals against recognition orders issued in both the US and the UK.
Following further legal advice, Ogun State engaged Zhongshan in settlement discussions on reasonable terms. The last meeting, attended by several Ogun State officials, including Governor Prince Dapo Abiodun and the Honourable Attorney General/Minister of Justice, lasted three days in London in September 2023.
While Zhongshan initially appeared willing to consider Ogun State’s offer, this position changed on the second day, with Zhongshan insisting on full payment of the debt. This led to a breakdown in mediation, with the parties agreeing to reconvene in the first quarter of this year.
Since then, Zhongshan has acted in bad faith, evading negotiations and pursuing a series of enforcement proceedings, which have been successfully contested by the legal teams appointed by the FGN and Ogun State. In similar cases where Zhongshan obtained ex-parte orders, Ogun State has successfully overturned these orders.
We regret any embarrassment this situation has caused the Federal Government of Nigeria, President Asiwaju Bola Tinubu, GCFR, and the people of Ogun State. We reaffirm our commitment to protect the integrity of the nation and its assets. We have taken all necessary legal steps to ensure that this baseless order is vacated as quickly as possible. As a sovereign nation, protected by laws of sovereign immunity, we will resist any attempts at blackmail and theatrical maneuvers designed to extort and embarrass our country.
Ogun State remains committed to a reasonable settlement, as evidenced by our most recent correspondence with Zhongshan. Unfortunately, Zhongshan only responded after obtaining this latest order. We have always preferred a reasonable and objectively quantifiable settlement figure and continue to view it as a viable option for resolving this prolonged dispute.
E SIGNED
HON. KAYODE AKINMADE
SPECIAL ADVISER ON MEDIA AND STRATEGY TO THE GOVERNOR OF OGUN STATE
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