Seized Presidential Jets: I Terminated Zhongfu’s Contract After Consulting Chinese Government, Says Former Ogun Governor Amosun 

Former Ogun State Governor Ibikunle Amosun has thrown more light on the ongoing controversy surrounding the seizure of three Nigerian presidential jets by French authorities, which stems from a prolonged legal battle between the sub-national government and Zhongshan Fucheng Industrial Investment Co. Ltd.

The conflict, rooted in a dispute with Zhongshan’s subsidiary in Nigeria known as Zhongfu International Investment FXE, has brought to light allegations of deceit and manipulation that led to the termination of Zhongfu’s contract with the then Ogun State government led by Amosun.

Despite an arbitral tribunal, chaired by a former President of the UK Supreme Court, ruling in favour of Zhongshan and awarding them €74,459,221 in compensation for the terminated contract, the decision has yet to be honoured.

As a result, Zhongshan sought enforcement of the arbitral award through the French legal system. The enforcement judge at the Paris Judicial Court granted the company authority to seize three federal government aircraft.

However, in a press statement issued on Saturday, Amosun provided a comprehensive account of the events that led to the severance of ties with Chinese firm which he referred to as Zhongfu International Investment FXE. 

He described a history marked by corporate rivalry, misinformation, and legal challenges that severely disrupted the operations of the Ogun Guangdong Free Trade Zone (OGFTZ).

The conflict he said, began shortly after his administration took office in May 2011, when two Chinese companies, China Africa Investment FXE and Zhongfu International Investment FXE, each claimed management rights over the OGFTZ. What initially appeared to be a straightforward business disagreement quickly escalated into a fierce rivalry that disrupted operations within the Zone and threatened the peace of neighboring communities, he said. 

Amosun accused the firm of presenting itself as a concerned stakeholder, offering the Ogun State Government damaging allegations against China Africa Investment FXE, the official representatives of Guangdong Province and the lawful Zone managers. This led the Ogun State Government to appoint Zhongfu as the interim Zone manager in March 2012, a move intended to stabilize the situation while further investigations were conducted.

“Based on the information at the disposal of Goverment at the time, Zhongfu International Investment FXE was on 15/03/2012 appointed as Interim Zone Manager pending further evaluation. The whole idea was to ensure that someone was in charge and thereby prevent unwholesome and untoward development in the Zone pending the completion of our fact finding exercise.”

However, he later found out that the information provided by Zhongfu against China Africa Investment FXE were false.

“It was later discovered that the information and claims volunteered by Zhongfu International Investment FXE against China Africa Investment FXE were tissues of lies.”

Amosun recounted how, unknown to the Ogun State Government, Zhongfu had engaged in a deliberate campaign to de-market China Africa Investment FXE and covertly take over the state-owned assets of Guangdong Province, as well as the Zone’s ownership and management rights. 

He noted that the full extent of Zhongfu’s deception was uncovered in 2016 when the Chinese Government, through Diplomatic Note 1601, clarified that China Africa Investment FXE was the rightful investor and joint venturer in the OGFTZ.

“The Government of the Peoples Republic of China, via its Diplomatic Note 1601 dated 11th March, 2016 clarified to Ogun State Government, that China Africa Investment FXE was the rightful investor. After due consultation with the relevant organs of Government, we gave effect to the request of the Chinese Government.

“Following consultations with relevant government agencies, including the State Security Services and the Nigerian Export Processing Zones Authority (NEPZA), the Ogun State Government issued a formal termination notice to Zhongfu on May 27, 2016.”

According to Amosun, despite losing multiple court cases and failing to substantiate its claims, Zhongfu continued to pursue its interests through various legal and administrative channels, including petitions to top government officials and agencies. Amosun detailed how the Ogun State Government, supported by the Federal Government, successfully defended its actions across all levels.

“We do recall, that Zhongfu International Investment FXE approached Nigerian courts in different jurisdictions to ventilate its legal and business rights. They lost all their four cases in court.

“We also consulted with and took advice from the State Security Services and the supervising Agency, NEPZA, on the best way to proceed. Accordingly, we served Zhongfu International Investment FXE with formal Termination Notice dated 27 May, 2016.

“For completeness of records, we must mention that Zhongfu International Investment FXE proceeded to Court. Among others, the proceedings in Suit No HCT/417/2016: Zhongfu International Investment FXE Vs OGFTZ and, FCT/ABJ/CS/601/2016: Zhongfu International Investment FXE Vs NEPZA & Ors will help to throw light on this business dispute between two Chinese entities- Zhongfu and China Africa.  

 “The final judgement in one other case, Suit No AB/04/2017: Zenith Global Merchant International Investment Ltd Vs Zhongfu International Investment FXE delivered on 29/3/2017 specifically restrained a reference to arbitration in the special circumstances of the matter being a trade dispute between two Chinese entities- Zhongfu and China Africa, with little or no  connection with either Ogun State or the Federal Government.”

In his statement, Senator Amosun emphasised that the original agreement signed in 2007 between Ogun State and the Chinese investors remained in force throughout his administration, with no need for renegotiation or new contracts. 

He strongly advised against entertaining further negotiations with Zhongfu, drawing a parallel with the infamous P&ID case, where Nigeria was nearly scammed out of billions of dollars by a fraudulent foreign entity.

Amosun urged Nigerian authorities to treat the Zhongfu case with the same level of seriousness to prevent the unlawful appropriation of Nigeria’s sovereign assets. 

“The agreement that was entered into at inception of the Zone in 2007 with our predecessor is what is still in operation and there was no need for any negotiation or re-negotiation of any contract when we came in and throughout our eight (8) years tenure.

“Nigeria should not give Zhongfu International Investment FXE any listening ear as doing so would amount to indulging and, encouraging an unlawful entity without locus standi to appropriate our common patrimony.

“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.”

Nigeria’s Presidency on Thursday also issued a strong rebuttal regarding the recent seizure of the three Nigerian aircraft by Chinese company Zhongshan, accusing the company of fraudulent activities and misleading the Judicial Court of Paris in its attempt to claim Nigerian assets.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, refuted any contractual obligation between the Federal Government and Zhongshan, emphasising that the jets, being sovereign assets, are protected by diplomatic immunity and cannot be legally seized by foreign courts.

Onanuga highlighted that the ongoing legal issues pertain exclusively to Zhongshan and Ogun State Government, and not the Federal Government.

“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.”

Chioma Kalu

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