• Seeks to overturn verdict
• The ruling emanates from application by Zhongshan, a Chinese company, whose export processing zone management contract was revoked by the Ogun State government in 2016.
The Ogun State Government has vowed to resist any attempts at blackmail and theatrics aimed at extorting or embarrassing Nigeria in connection with the recent seizure of presidential aircraft.
The controversy emanates from an application by Zhongshan, a Chinese company, whose export processing zone management contract was revoked by the Ogun State government in 2016.
In a ruling by an independent arbitral tribunal, chaired by a former UK Supreme Court President, Zhongshan was awarded approximately $74.5 million in compensation.
Despite this, the Ogun State Government remains steadfast in its position, refusing to yield to what it describes as undue pressure.
According to SaharaReporters, the Special Adviser on Media and Strategy to the Governor of Ogun State, Hon. Kayode Akinmade, said, Zhongshan’s initial willingness to consider Ogun State’s offer was surprisingly reversed, with an insistence on the payment of the full debt.
Akinmade said 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”).
According to him, 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 of 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,” he said.
He said each of the three aircraft is used solely for sovereign purposes and as such are immune from attachment under 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.
“Shockingly, it also appears to have misled the Judicial Court of Paris as to the use and nature of the assets it seeks to attach and not made full disclosure to the court as required by law,” the statement said.
Akinmade said Ogun State in conjunction with the Federal Government of Nigeria, has taken swift action to ensure that the provisional attachments are lifted without delay.
“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,” he said.
He noted that in 2019, when the current State Administration took office, the hearing at the arbitration had been all but concluded.
According to him, “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.”
Akinmade explained that 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.
“On the further advice of counsel, Ogun State also engaged Zhongshan in settlement discussions on reasonable terms,” he said.
He further explained that the last meeting attended by several officials of Ogun State, including Prince Dapo Abiodun – the Governor of Ogun State, and the Attorney General/Minister of Justice lasted for three days, in September 2023 in London.
However, Zhongshan’s initial reasonable readiness to consider Ogun State’s offer, was surprisingly reversed by the second day, with an insistence on the payment of the full debt. This led to a breakdown of the mediation, with parties agreeing to meet again in the first quarter of this year.
He said since then, Zhongshan has in bad faith been evasive and instead embarked on a series of enforcement proceedings which the legal team appointed by the FGN and Ogun State have successfully opposed.
The state government said, “In cases similar to the present one where Zhongshan obtained an ex-parte order, Ogun State has successfully set aside the orders.
“We naturally regret any embarrassment this has caused the Federal Government of Nigeria, HE President Asiwaju Bola Tinubu, GCFR and the good people of Ogun State and re-affirm our commitment to constantly and consistently protect the integrity of the nation and its assets.”
He said, “We have taken all necessary legal steps to ensure that this spurious and baseless order is vacated within the shortest possible time. As a sovereign nation, whose assets are protected by laws of sovereign immunity, we vow to resist any attempts at blackmail and theatrics clearly designed to extort and embarrass our dear country.
“It is important to note that Ogun State never gave up on a reasonable settlement option, with the most recent letter sent to Zhongshan, last week.”
“Unfortunately, Zhongshan only responded after obtaining this latest order. A reasonable and objectively quantifiable settlement figure has always been our preference and continues to be an option in the resolution of this protracted dispute,” he added.
BACKGROUND
A PREMIUM TIMES report earlier revealed that Chinese company Zhongshan had successfully petitioned for the seizure of three Nigerian presidential jets.
The company’s export processing zone management contract was terminated by the Ogun State government in 2016.
The seized jets, which are part of Nigeria’s presidential air fleet, are a Dassault Falcon 7X at Le Bourget airport in Paris, a Boeing 737 and an undelivered Airbus 330 at Basel-Mulhouse airport in Switzerland, which was purchased by Nigeria but not yet received.
According to the newspaper, the seizure was a result of the contractual dispute between Zhongshan and the Ogun State government.
A French court authorised the seizure of the three presidential jets due to the ongoing dispute between Zhongshan, a Chinese company, and the Ogun State government.
It noted that the seizure is a result of the government’s failure to honour a $74.5 million award granted to Zhongshan by an independent arbitral tribunal, chaired by the former President of the UK Supreme Court.
It noted that despite the federal government’s efforts to resolve the issue amicably, the Ogun State government had yet to comply with the award.
The court order restricts the movement, sale, or purchase of the jets until Zhongshan receives the awarded amount, leaving the Nigerian government facing consequences for the actions of its subnational entity.
Sahara Reporters