Zhongshan Fucheng Industrial Investment Co. Limited, the Chinese agency that bought a court docket injunction to floor three presidential jets belonging to the Federal Government in Europe, has initiated plans to grab different Nigerian property within the United Kingdom, United States of America and in six different nations, The PUNCH has learnt.
The PUNCH additionally learnt that the corporate had instituted authorized proceedings in about eight jurisdictions globally, concerning the dispute.
The different nations embrace Belgium, Canada, France, Singapore and the British Virgin Islands, paperwork regarding the case, which had been obtained by our correspondent, had been revealed on Thursday.
This comes because the Federal Government vowed to guard its overseas property from “predators.”
There has been critical controversy following stories that the Chinese firm bought judgement to floor three presidential jets belonging to the Federal Government.
In 2001, China and Nigeria signed a bilateral funding treaty aimed toward selling business funding between the 2 nations.
In 2007, Ogun State reportedly entered right into a three way partnership settlement with a Chinese firm and one other firm to create the Ogun Guangdong Free Trade Zone Company. The Nigeria Export Processing Zones Authority, a Federal Government entity that oversees free-trade zones in Nigeria, then delegated management and operation of the free-trade zone to the corporate.
In 2010, the Ogun Guangdong Free Trade Zone Company contracted with Zhongshan’s dad or mum firm to develop an industrial park within the free-trade zone. The purpose was for Zhongshan’s dad or mum firm to develop the park and construct factories in it for tenants to make use of.
In the primary half of 2016, nonetheless, the settlement between each events was terminated, resulting in Zhongshan submitting lawsuits in Nigerian federal and state courts in search of reinstatement of its contractual rights however the authorized proceedings had been discontinued in Spring 2018.
However, a French court docket, lately, authorised the seizure of three of Nigeria’s presidential jets, two of the jets – a Dassault Falcon 7X and a Boeing 737 – are a part of Nigeria’s presidential air fleet that had been lately put up on the market and the third, an Airbus 330 bought by Nigeria, however not but delivered.
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Zhongshan had once more dragged Ogun to court docket, the place an unbiased arbitral tribunal, chaired by the previous President of the UK Supreme Court, awarded the Chinese agency $74.5m compensation, which Ogun was but to pay.
The court docket order prohibited Nigeria from transferring or promoting the presidential jets till the Chinese agency was paid the $74.5m by Ogun, its sub-national.
However, paperwork indicated that the Chinese firm tried to grab a jet being recovered by the nation from Dan Etete as proceeds from fraudulent acts in Canada.
The Federal Government had tracked down and grounded the posh personal jet bought by former petroleum minister, Etete, with a number of the alleged proceeds of the infamous $1.3bn Malabu OPL245 oil deal.
“The goal is clear – that Mr Etete will avoid the seizure of an asset he got with stolen Nigerian money, with Zhongshan’s connivance.”
According to the paperwork, Zhongshan was initially engaged as a developer and supervisor of Fucheng Industrial Park however was requested to handle the power after the federal government terminated the three way partnership with CAI as a result of it didn’t meet the required necessities.
The doc claimed that the Ogun authorities cancelled the contract after it acquired a Diplomatic Note 1601 from the Economic and Commercial Section of the PRC Consulate in Lagos, alleging that Guangdong illegally held shares in China Africa Investment Limited, a state asset and that entity (New South Group) was the corporate correctly entitled to handle OGFTZ.
The doc learn, “In 2007, the Ogun State Government, in partnership with the Guangdong province in China conceived and arrange the Ogun Guangdong Free Trade Zone, which sits on 2,000 hectares in Igbesa, Ogun State.
“Ogun State signed a Joint Venture Agreement immediately with China Guangdong Xinguang China-Africa Investment Limited representing Guangdong Province within the three way partnership. OGFTZ homes a number of enterprises in addition to subdevelopments, together with one Fucheng Industrial Park, measuring 224 hectares. In 2010, OGFTZ contracted Zhongshan to develop and handle Fucheng Industrial Park.
“However, in 2012, Ogun State terminated the joint venture with CAI because CAI had not met obligations under the 2007 JVA. Ogun State then appointed Zhongshan as an interim manager of the Zone, since it was already managing Fucheng Industrial Park. In June 2012, Zhongshan assumed management control of a 51 per cent stake in CAI and subsequently signed another JVA with Ogun State Government in September 2013.”
It additional acknowledged that the corporate had been making efforts to implement the tribunal award.
“As of August 2024, there are court docket proceedings in about eight jurisdictions of the world concerning this dispute.
“These include USA, UK, Belgium, Canada, France, and the British Virgin Islands. Till date, Zhongshan has not realised a single penny from the Award, and all signs indicate that Zhongshan is unlikely to do so anytime soon.”
It added that the corporate was nonetheless monitoring the placement of Nigerian property overseas.
Meanwhile, a court docket doc has revealed that the Chinese firm was demanding compensation of $130.6m as a consequence of a breach of contract by reneging on phrases between each events to create the Ogun Guangdong Free Trade Zone.
The doc obtained by our correspondent on Thursday, nonetheless, listed the Federal Government because the defendant as a result of the direct settlement was between Nigeria and China and never with the corporate based mostly on worldwide treaty situations.
The case filed on the United States District Court for the District of Columbia (No. 1:22-cv-00170) was argued April 22, 2024 and determined August 9, 2024 by Circuit Judges Millett, Katsas and Childs.
In presenting its argument, the corporate acknowledged that Nigeria violated the Investment Treaty with China in 5 methods “by failing to provide Zhongshan with fair and equitable treatment, engaging in unreasonable discrimination, neglecting to protect Zhongshan, breaching the contract, and wrongfully expropriating investments without compensation.”
Giving particulars of the deal, the corporate mentioned it invested tens of millions of {dollars} and vital assets to develop and construct infrastructure within the industrial park, together with roads, utilities and opened companies akin to a hospital, lodge, grocery store, and financial institution.
By 2016, companies had moved into the zone and Nigeria had collected roughly N160m in tax income from the free-trade zone.
It learn, “In the primary half of 2016, nonetheless, Ogun State terminated its agreements with Zhongshan. Ogun claimed {that a} completely different Chinese firm was legally entitled to Zhongshan’s share of the free-trade zone and that Zhongshan had defrauded Ogun.
“Things continued to deteriorate. One Ogun official texted a Zhongshan government, urging him ‘as a friend’ to ‘leave peacefully when there is opportunity to do so, and avoid forceful removal, complications and possible prosecution.’ The subsequent month, Ogun issued an arrest warrant for 2 executives, alleging a ‘criminal breach of trust.’
“Nigerian federal police arrested one Zhongshan government at gunpoint and held him for ten days. During that point, the police denied the chief meals and water, beat him, intimidated him, and questioned him in regards to the whereabouts of the opposite government.
“Based on these findings, the arbitral tribunal found that Nigeria had breached its obligations under the Investment Treaty and that Zhongshan was entitled to $55.6m in compensation from Nigeria and $75,000 in moral damages, along with interest and legal and arbitral fees.”
Reacting, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), mentioned his workplace and that of the National Security Adviser have commenced authorized and diplomatic strikes to get well the three presidential plane seized by the Chinese agency.
This was contained in a press release by the Special Adviser to the President on Communication and Publicity, Office of the AGF, Kamarudeen Ogundele, on Thursday in Abuja.
The assertion learn, “On 14th August 2024, the Federal Government of Nigeria turned conscious of the interim attachment of three presidential plane present process routine upkeep in France. The mentioned momentary attachment was made pursuant to exparte orders issued by the Judicial Court of Paris dated 7 March 2024 and 12 August 2024 respectively on the occasion of Messrs. Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese firm in search of to implement a Final Award granted in its favour on 26 March 2021, in opposition to one in all Nigeria’s sub-nationals, Ogun State.
“It is to be famous that the arbitral award arose from an arbitration continuing which commenced in 2018 as a fallout of a contractual dispute between the Chinese firm and Ogun State Government over the operation and administration of Ogun Guangdong Free Trade Zone.
“We want to make clear that, although the dispute originated from engagements of the Ogun State Government, nonetheless, the consequential enforcement actions are being directed in opposition to the Federal Government and its property according to extant ideas of worldwide regulation, which holds that the actions of a subnational or native entity are attributable to the state or nation itself.
“The workplaces of the National Security Adviser and the Attorney-General of the Federation have already set in movement each authorized and diplomatic steps to make sure the discharge of the inappropriate orders in opposition to the aircrafts, that are lined 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 press release titled ‘Chinese company’s fraudulent try to strip Nigeria’s property overseas’, on Thursday mentioned the efforts by Zhongshan to take over the jets had been fraudulent.
The Presidency argued that the use and nature of the jets as property of a sovereign entity whose property had been protected by diplomatic immunity forbade any overseas court docket from issuing an order in opposition to them.
It mentioned it’s satisfied that the Chinese firm “misled” the Judicial Court of Paris concerning the use and nature of the property it sought to connect and didn’t absolutely confide in the court docket as required by regulation.
The assertion, signed by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, “The Presidency is conscious of the varied failed makes an attempt by a Chinese firm, Zhongshan Fucheng Industrial Investment Co. Limited, to take over offshore property of the Federal Government of Nigeria by means of 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 course of that led to the provisional attachment of three Nigerian government-owned plane in France by the Judicial Court of Paris on March 7 and August 2, 2024.
In a press release signed by the Special Adviser to Governor Dapo Abiodun on Media and Strategy, Kayode Akinmade, the state authorities described the newest growth as “the new antics by the Chinese company to appropriate Nigerian assets in foreign jurisdictions, as past efforts had continually failed.”
The assertion described the authorized course of “as nothing but a total charade with fraudulent notion,” including that the corporate intentionally hid the litigation from each the Nigerian authorities and Ogun State, in addition to their authorized counsels earlier than hurriedly securing orders of seizure.
The state authorities mentioned the corporate will need to have misled the Judicial Court of Paris on the use and nature of the property it sought to connect and never make full disclosure to the court docket as required by regulation.
The assertion learn, “On 14 August 2024, the eye of the Ogun State Government was drawn to the provisional attachment of three Nigerian government-owned plane in France by the Chinese firm, Zhongshan Fucheng Industrial Investment Co. Ltd. (Zhongshan).
“Ogun State additionally discovered of two orders of the Judicial Court of Paris dated 7 March 2024 and 12 August 2024 respectively, each obtained by Zhongshan with out discover being duly given to the Federal Government of Nigeria, Ogun State or their authorized counsel.
“This is the newest in a sequence of ill-advised makes an attempt by Zhongshan to connect Nigerian-owned property in overseas jurisdictions, none of which need to date led to the restoration of any sums from Nigeria.
“Each of the three plane is used solely for sovereign functions and as such are immune from attachment beneath worldwide and French legal guidelines.
“In acquiring the provisional attachments, Zhongshan intentionally withheld info from the Federal Government of Nigeria, Ogun State and their authorized counsel.
“Just just like the P&ID case, that is one other unlucky case of unscrupulous people masquerading as overseas traders with the only real goal 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 present State Administration took workplace, the listening to on the arbitration had been all however concluded. The Arbitral Panel awarded over 60 million USD in opposition to the Federal Government of Nigeria (FGN) which was a co-Defendant, when all Zhongshan had performed was to construct a fringe fence across the free-trade zone. Needless to say this was a nasty/unfair resolution.
“The current State Administration couldn’t in all good conscience enable such an unconscionable and baseless resolution, which might dissipate the commonwealth of the nice individuals of Ogun State, to face.
“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 assertion learn.