Nigeria’s Presidency has issued a strong rebuttal to the recent seizure of three Nigerian aircraft by Chinese company Zhongshan Fucheng Industrial Investment Co. Limited, which occurred amid a contentious legal dispute, accusing the company of fraudulent activity and misleading the Judicial Court of Paris in its attempt to claim Nigerian assets.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, denied any contractual obligation between the Federal Government and Zhongshan, pointing up that the planes, as sovereign assets, are covered by diplomatic immunity and cannot be legally taken by foreign courts.
Onanuga emphasised that the ongoing legal concerns are solely the responsibility of the Zhongshan and Ogun state governments, not the federal government.
“Undoubtedly, Zhongshan withheld critical information and misled the Judicial Court in Paris into attaching the Nigerian government’s presidential jets, which are undergoing routine maintenance in France.” The use and nature of Presidential jets as assets of a sovereign institution covered by diplomatic immunity precludes any foreign court from issuing an order against them.
“We believe the Chinese corporation misled the Judicial Court of Paris about the usage and nature of the assets it seeks to attach and failed to properly disclose to the court as required by law. This same Chinese corporation attempted to impose its doubtful judgement in the United Kingdom and the United States, but failed.”
According to Onanuga, the Presidency is aware of Zhongshan’s attempt to take over offshore assets of the Federal Government of Nigeria “through subterfuge”.
T”he 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.
The Federal Government is fully aware of efforts being made by the Ogun State Government to reach an amicable resolution on the matter. 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.”
He further stated that Zhongshan’s claim for restitution lacks merit based on the facts of the 2007 contract and subsequent revocation in 2015.
Onanuga accused Zhongshan of obtaining two court orders from the Judicial Court of Paris, dated March 7, 2024, and August 12, 2024, without notifying the Federal Government or Ogun State.
He described these actions as part of a series of failed attempts by Zhongshan to attach Nigerian government-owned assets abroad, likening the situation to the infamous P&ID case where unscrupulous entities have tried to defraud African governments.
“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.”
The statement provided background on the dispute, noting that the contract between Ogun State and Zhongshan, executed in 2007, had been contested since 2015.
Arbitration concluded in 2019 with an award of over $60 million against the Federal Government, although Zhongshan had only completed minimal work on the project. Ogun State successfully resisted enforcement of this award in eight jurisdictions, with ongoing appeals in the US and UK.
Recent settlement discussions, including a three-day meeting in London in September 2023 with Ogun State officials and the Attorney General/Minister of Justice, Prince Lateef Fagbemi, had broken down. It noted that Zhongshan’s initial willingness to negotiate was reversed, leading to a dispute over the full arbitration debt.
It was also stated that Ogun State has continued to seek a reasonable settlement, with the latest correspondence sent to Zhongshan last week. According to the statement, Ogun State has continued to seek a reasonable settlement, with the latest correspondence sent to Zhongshan last week.
The Federal Government further assured Nigerians that it is working closely with Ogun State to contest the court orders and protect national assets from fraudulent claims.
The seizure of the three aircraft associated with the Nigerian government were seized under the authority of a French court following a protracted legal battle between a sub-national and Zhongshan Fucheng Industrial Investment Co. Ltd.
The seizure includes a newly acquired Airbus A330 valued at over $100 million as well as a Dassault Falcon 7X and a Boeing 737, previously part of the Nigerian presidential fleet.
The report said the Dassault Falcon 7X was undergoing maintenance at Paris-Le Bourget airport, while the Boeing 737 and Airbus A330 were stationed at Basel-Mulhouse International Airport for similar reasons.
ARISE News had made repeated efforts to get a reaction and was advised by a presidential media aide that the Minister of Aviation, Festus Keyamo, was in the best position to speak on the incident.
However Keyamo’s media aide Tunde Moshood advised that the Attorney-General of the Federation, Lateef Fagbemi, would be in a better position to speak on the matter.
A spokesperson for Fagbemi asked for time to make findings and promised to revert once he had more information, before Onanuga issued a detailed statement.