Ibikunle Amosun and Gbenga Daniel, two former governors of Ogun State, have promised to back the federal government’s efforts to retrieve national assets seized by a French court.
Zhongshan Fucheng Industrial Investment Company Limited, a Chinese corporation, obtained a court judgement, resulting in the confiscation of three presidential jets–a Dassault Falcon 7X, a Boeing 737, and an Airbus 330.
In 2007, the Ogun State Government formed a joint venture with Zhongshan and another companies to establish the Ogun Guangdong Free Trade Zone companies.
However, in the first half of 2016, the parties’ agreement fell apart, prompting Zhongshan to file cases in Nigerian federal and state courts seeking the reinstatement of its contractual rights, which were unsuccessful.
However, after presenting the case to a French court, the corporation was awarded damages. The court barred Nigeria from relocating or selling three presidential jets until the Chinese corporation received the $74.5 million granted by the court.
In separate remarks issued on Saturday, the former governors characterised Zhongshan as a charlatan and stated that the company’s demands for compensation were without merit.
In a statement signed on Saturday, Amosun stated that Nigeria should not listen to Zhongfu (also known as Zhongshan) because doing so would encourage “an unlawful entity without locus standi to appropriate our common patrimony.”
He maintained that there was no foundation for bargaining.
He stated, “Government is a continuum at many levels, and the various factors that led to this tragic situation occurred before, during, and after our administration.
“Our administration took office on May 29, 2011.” Shortly after we entered government, two independent sets of Chinese firms, Messrs China Africa Investment FXE and Zhongfu International Investment FXE, claimed management rights to the Ogun Guangdong Free Trade Zone.
“The economic disagreement and rivalry between the Chinese enterprises quickly turned heated, disrupting seamless corporate activities and endangering public peace and safety in the zone and surrounding villages.
“There were allegations and counter-claims about who of the two was the authorised representative of the original joint venturer, Guangdong Province, China, and hence who had the authority to operate the zone.
“Zhongfu International Investment FXE, pretending to be a concerned and genuine tenant and zone stakeholder, volunteered very damaging and destructive information about the official representatives of Guangdong Province, the Joint Venturer and lawful zone managers, China Africa Investment FXE, and subsequently requested to be appointed as interim zone managers.”
The legislator mentioned that on March 15, 2012, the state administration nominated Zhongfu as interim zone manager.
He explained that the decision was made to avoid unwholesome development in the zone until a fact-finding effort could be completed.
However, the former governor said that the state eventually determined that Zhongfu’s allegations against China Africa were false.
According to him, Zhongfu’s actions were intended to de-market China Africa and convert state-owned assets from Guangdong Province in China.
Amosun noted that after receiving a diplomatic note from the Chinese government dated March 11, 2016, the state administration established that China Africa was the rightful investor.
“After consulting with the appropriate government organs, we granted the Chinese government’s request.
“We note that Zhongfu International Investment FXE contacted Nigerian courts in various jurisdictions to defend its legal and business interests. They lost all four cases in court.
“We also sought guidance from the State Security Services and the supervising body, NEPZA, on the best approach to continue. As a result, we served Zhongfu International Investment FXE with a formal termination notice dated May 27, 2016,” he stated.
Amosun argued that a final verdict issued on March 29, 2017 stated that the case was a trade dispute between two Chinese firms with no connection to Ogun State or the federal government.
He said that Zhongfu’s attempts to petition several authorities in Abuja were unsuccessful, as his administration defended its actions at all levels until leaving office in May 2019.
“It is not true that our government dispatched police or security personnel to harass, intimidate, or assault anyone. If such a circumstance existed, it was most likely caused by competing rivals trying to outdo each other. Security agencies might conduct additional investigations to establish the truth.
“Stemming from the above, this matter of Zhongfu International Investment FXE should be treated the way Nigeria treated the P&ID case. There is no basis for negotiation.
“I am ready to work with the agencies of government in any capacity to ensure that Nigeria is not scammed by Zhongfu International Investment FXE, or any other entity.
“Like every Nigerian, we are concerned that a purely business dispute between two Chinese nationals and corporations have now degenerated into an unlawful attempt to appropriate Nigeria’s sovereign assets. This is unacceptable to all people of goodwill and must not be allowed to stand,” he stated.
On his part, Daniel said he was ready to provide documents that would help the Federal Government pursue the case against the Chinese firm.
The Senator representing Ogun East Senatorial District also promised to help President Bola Tinubu to find “a diplomatic resolution to the national embarrassment.”
Daniel described the legal conundrum as a sensitive matter involving collective national assets and commonwealth which every Nigerian should be concerned about.
“We need to also appreciate that this matter is before various courts in several countries and it is subjudice for anyone to speak on them.
“However, let us emphasise once again that the Ogun/Guangdong Free Trade Zone project still exists and several Nigerians are working there as we write, just as there are several companies still doing their legitimate businesses,” he added.
FG warns states
Meanwhile, the Federal Government has warned the 36 state governments against entering foreign or international negotiations without the input of the Ministry of Foreign Affairs.
The Minister of Foreign Affairs, Yusuf Tuggar, stated this in a statement on Saturday in Abuja amid the contractual dispute between the Ogun State Government and Zhongshan.
Tuggar emphasised the importance of registering international arrangements with the Ministry of Foreign Affairs and Federal Government to avoid similar issues in the future.
The minister noted that the Ogun State Government’s agreement with the Chinese company was made without the knowledge of the Federal Government, which resulted in the seizure of national assets.
He stressed that foreign negotiations required experienced individuals with necessary skills and training, and sub-national actors should not engage in such agreements alone.
The statement added, “This is part of the problem when sub-national actors like state governments take it upon themselves to go into agreements, go into international arrangements, without recourse to the Ministry of Foreign Affairs, without recourse to the Federal Government, and then when it goes awry, we are left with the problem to deal with.
“That is why it is always important that such arrangements should be registered with the mission there, with the embassy, with the Ministry of Foreign Affairs, and with the Federal Government.
“This is something that Ogun State, under a different administration, not this governor, entered into that we’re not aware of. All we know is that they’re going after Nigerian assets. That’s why, really, foreign or international negotiations are not the purview of sub-national actors.
“You should always have those that are experienced in such an area that have the necessary skills and the necessary training to negotiate these sorts of agreements.”