- Vows To challenge French Court’s Order
By Abiola Olawale
The Presidency, on Thursday, reacted to a recent judgment from a French court, ordering the seizure of some offshore assets owned by the Federal Government of Nigeria.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, in a statement issued on Thursday, said the court granted the judgment based on false information submitted by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited.
The senior presidential aide said Zhongshan is trying to arm-twist the Nigerian government to take over its offshore assets.
Onanuga argued that though Zhongshan has issues with Ogun State, the Federal Government is not under any contractual obligation with the company.
He noted that the Federal Government is fully aware of efforts being made by the Ogun State Government to reach an amicable resolution on the matter.
The statement reads in part: “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.
“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.”
Onanuga also stated that the 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,” he said.
The Presidency assured 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.”
It would be recalled that the French court in question had, in a ruling granted an order compelling the payment of a $74.5 million compensation award to Zhongshan.
The court, in its ruling, barred the Federal Government of Nigeria from moving and selling the jets until one of its subnationals, Ogun State, pays Zhongshan the awarded $74.5 million compensation.
The seized presidential jets include a Dassault Falcon 7X at Le Bourget airport in Paris, a Boeing 737, and an Airbus 330 at Basel-Mulhouse airport in Switzerland.
The New Diplomat reports that the Chinese firm had approached the court seeking an order compelling Nigeria to pay a $70 million investment treaty award.
The trouble began in 2010 when Zhongshan, through Zhuhai Zhongfu Industrial Group Co. Ltd (Zhuhai), its Chinese parent company, acquired rights to develop a free trade zone in Ogun state.
A year later, Zhongshan set up Zhongfu International Investment (NIG) FZE (Zhongfu), a Nigerian entity, to manage the project under the permission of the Ogun state government.
Things took a different turn in July 2016 when the company accused the state government of abruptly moving to terminate its appointment while attempting to install a new manager for the free trade zone.
Subsequently, Zhongfu initiated an investment treaty arbitration against Nigeria under the bilateral investment treaty between the People’s Republic of China and Nigeria (the China-Nigeria BIT).
The arbitrators had ruled that Nigeria was in breach of its obligations under the China-Nigeria BIT and awarded Zhongshan compensation of around $70 million.
In January 2022, the Chinese company proceeded further to initiate a case to seek enforcement of the arbitration award.
Nigeria pleaded state immunity but was turned away by Sara Cockerill, a high court judge, who said the country abused the time frame for appealing arbitral awards.
