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Chinese Firm To Seize All Nigerian Assets In US, UK And Six Other Countries

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Chinese Firm To Seize All Nigerian Assets In US, UK And Six Other Countries

The Chinese firm that got a court injunction to ground three presidential jets belonging to the Federal Government in Europe, has initiated plans to seize other Nigerian assets in the United Kingdom, United States of America and in six other countries.

Recall that the company had instituted legal proceedings in about eight jurisdictions globally, regarding the dispute.

The other countries include Belgium, Canada, France, Singapore and the British Virgin Islands.

This comes as the Federal Government vowed to protect its foreign assets from “predators.”

There has been serious controversy following reports that the Chinese company got judgement to ground three presidential jets belonging to the Federal Government.

This was contained in a statement by the Special Adviser to the President on Communication and Publicity, Office of the AGF, Kamarudeen Ogundele, on Thursday in Abuja.

The statement read, “On 14th August 2024, the Federal Government of Nigeria became aware of the interim attachment of three presidential aircraft undergoing routine maintenance in France.

The said temporary attachment was made pursuant to exparte orders issued by the Judicial Court of Paris dated 7 March 2024 and 12 August 2024 respectively at the instance of Messrs. Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company seeking to enforce a Final Award granted in its favour on 26 March 2021, against one of Nigeria’s sub-nationals, Ogun State.

 

Chinese Firm To Seize All Nigerian Assets In US, UK And Six Other Countries

 

It is to be noted that the arbitral award arose from an arbitration proceeding which commenced in 2018 as a fallout of a contractual dispute between the Chinese company and Ogun State Government over the operation and management of Ogun Guangdong Free Trade Zone.

“We wish to clarify that, though the dispute originated from engagements of the Ogun State Government, however, the consequential enforcement actions are being directed against the Federal Government and its assets in line with extant principles of international law, which holds that the actions of a subnational or local entity are attributable to the state or country itself.

“The offices of the National Security Adviser and the Attorney-General of the Federation have already set in motion both legal and diplomatic steps to ensure the discharge of the inappropriate orders against the aircrafts, which are covered by sovereign immunity.

“While, further actions are being put in place to resolve the entire dispute through available legal means, the firm position of the Federal Government remains that the aircraft in question are sovereign assets used solely for sovereign purposes and are therefore immune from attachment as Zhongshan has sought to do.”

Meanwhile, the Presidency, in a statement titled ‘Chinese company’s fraudulent attempt to strip Nigeria’s assets abroad’, on Thursday said the efforts by Zhongshan to take over the jets were fraudulent.

The Presidency argued that the use and nature of the jets as assets of a sovereign entity whose assets were protected by diplomatic immunity forbade any foreign court from issuing an order against them.

It said it is convinced that the Chinese company “misled” the Judicial Court of Paris regarding the use and nature of the assets it sought to attach and did not fully disclose to the court as required by law.

The statement, signed by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, “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.”

Also, the Ogun State Government, on Thursday, faulted the judicial process that led to the provisional attachment of three Nigerian government-owned aircraft in France by the Judicial Court of Paris on March 7 and August 2, 2024.

In a statement signed by the Special Adviser to Governor Dapo Abiodun on Media and Strategy, Kayode Akinmade, the 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 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.

The state government said the company must have misled the Judicial Court of Paris on the use and nature of the assets it sought to attach and not make full disclosure to the court as required by law.

The statement read, “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 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.

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.”

It added, “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 eight different jurisdictions. Currently, there are pending appeals against recognition orders issued in both the US and UK,” the statement read.

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