….begins moves to recover 3 presidential jets seized in France
…. It’s an International embarrassment’ — Obi
The Federal Government of Nigeria has accused a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, of subterfuge after a French court ruled in favour of the firm and granted the seizure of presidential jets belonging to the Nigerian government.
In a statement on Thursday, presidential spokesman Bayo Onanuga alleged that the Chinese firm is trying “to take over offshore assets of the Federal Government of Nigeria through subterfuge”.
In the dispute involving an arbitration award, the court in Paris ruled in favour of the Chinese firm, allowing it to seize three presidential jets on routine maintenance in France as “security” for claims in a decades-long judicial matter between the foreign company and the Ogun State government.
Free-Trade Zone Row
Back in 2007, the foreign firm signed a contract with the Ogun State government to manage a free-trade zone but the contract was revoked by the state government in 2015.
Displeased, Zhongshan initiated an investment treaty arbitration against Nigeria under the bilateral investment treaty between the People’s Republic of China and Nigeria (the China-Nigeria BIT).
The arbitrators ruled that Nigeria was in breach of its obligations under the China-Nigeria BIT and awarded Zhongshan compensation amounting to millions of dollars.
The Nigerian government and the subnational appealed the matter in “eight” jurisdictions including the United Kingdom and the United States.
The latest jurisdiction is in France, where three Nigerian presidential jets are on routine maintenance.
According to reports, the court in Paris held that the seizure of the jets was to “preserve the claim arising from the arbitration award dated 26 March 2021, made by an ad hoc arbitral tribunal”.
But the Nigerian government said it 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,” Onanuga said, flaying Zhongshan which he said “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”.
“When the contract with Ogun State was revoked in 2015, the company had only erected a perimeter fence on the land earmarked for a free trade zone,” he said.
Arm-Twisting Tactics?
Onanuga said despite that the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has been 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.”
He claimed the foreign company “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.
“We want to assure Nigerians that the Federal Government is working with the Ogun State Government to discharge this frivolous order in Paris immediately.
“Nigerian Government will always work to protect our national assets from predators and shylocks who masquerade as investors,” he noted.
Shrinking Presidential Fleet
The court order came amid a controversy surrounding the planned purchase of a new presidential jet for President Bola Tinubu who has had to use hired jets for official trips in recent times due to faulty presidential jets.
The health state of the Presidential Air Fleet has been source of concern of late.
In May, a faulty presidential jet stopped Vice President Kashim Shettima from attending the 2024 US-Africa Business Summit hosted by the Corporate Council on Africa.
Last December, a presidential aircraft, Falcon 900B, was put up for sale, with the Nigerian Air Force (NAF) asking interested persons to submit their bids for the purchase of the aircraft.
Nigerian Govt begins moves to recover 3 presidential jets seized in France
The Nigerian government on Thursday said it has commenced both diplomatic and legal steps to recover the three presidential aircraft seized in France on account of indebtedness.
The diplomatic and legal means are being currently explored by the Office of the National Security Adviser, NSA, and the Office of the Attorney General of the Federation, AGF, and Minister of Justice.
A statement by the AGF on Thursday in Abuja maintained that the debt which led to the seizure of the presidential aircraft was incurred by the Ogun State Government in a contractual agreement with a Chinese company.
Parts of the statement read: “On 14th August 2024, the Federal Government of Nigeria became aware of the interim attachment of three presidential aircrafts undergoing routine maintenance in France.
“The said temporary attachment was made pursuant to ex-parte orders issued by the Judicial Court of Paris dated 7 March 2024 and 12 August 2024 respectively.
“The orders were issued 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.
“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 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 aircrafts in question are sovereign assets used solely for sovereign purposes and are therefore immune from attachment as Zhongshan has sought to do.”
‘International embarrassment’ — Obi
Peter Obi, presidential candidate of the Labour Party (LP) in the 2023 election, says the seizure of three presidential jets by a French court is an “international embarrassment” to the country.
Obi, in a statement by Yunusa Tanko, his campaign spokesperson, said the seizure of presidential jets has exposed the federal government’s disregard for the rule of law and failure of leadership.
The former governor of Anambra said the federal government’s decision to proceed with the purchase of the jet amidst widespread criticism and severe economic struggles showed the insensitivity of President Bola Tinubu’s administration to the plight of citizens.
Obi also demanded that the federal government explain the circumstances surrounding the jet seizure
“The trending international news on the seizure of three jets belonging to Nigeria’s presidential fleet is yet another of many embarrassing things exposing our failed leadership and our attitude to the rule of law even in a democracy,” the statement reads.
“It has also exposed multiple dimensions to our leadership failure and our insensitivity to the plight of the growing poor class in our midst.
“The fact that the federal government went ahead with the jet deal despite the cacophonous cry against the purchase of a presidential jet at this time when the people are going through a horrifying economic hardship shows the insensitivity of this administration.
“Added to it is the embarrassing aspect of our country’s presidential jets being held for contractual breaches arising from yet another dimension of inadequate leadership tidiness.
“I have been loud in my demand over time that the government at all levels should be accountable to the people, meaning that they must be very transparent in all their dealings.
“Until a court in France prohibits Nigeria from moving or selling these three jets, Nigerians have no iota of information about both the buying and selling of these aircraft.
“It has been done in secrecy. Federal government property, which belongs to the people, is being managed as a personal family asset.
“Paying as much as $100 million for a presidential jet for a country that is the poverty capital of the world and has more out-of-school children with over 40% food inflation is the height of concern for the people’s feelings.
“This incident has also opened up an aspect of indiscipline that is copiously embedded in our country, which is the abuse and disrespect for the rule of law.
“Here are questions begging for answers: To what extent did the Ogun government follow its agreement with the Chinese firm?
“After the UK court ruling that prohibited some Nigerian buildings in Liverpool, what did both Ogun state and the federal government do before the French court action?
“I would like to, therefore, challenge the federal government to come clean and transparent on this matter and tell Nigerians how we got to this latest international mess.”
