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After seizing 3 presidential jets, Chinese firm targets Nigeria’s assets in eight countries

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After seizing 3 presidential jets, Chinese firm targets Nigeria's assets in eight countries
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Zhongshan Fucheng Industrial Investment Co. Limited, the Chinese firm that got a court injunction to ground three presidential jets belonging to the Federal Government in Europe, has initiated plans to seize other Nigerian assets in the United Kingdom, United States of America and in six other countries, The PUNCH has learnt.

It was also learnt that the company had instituted legal proceedings in about eight jurisdictions globally, regarding the dispute.

The other countries include Belgium, Canada, France, Singapore and the British Virgin Islands, documents relating to the case, which were obtained by our correspondent, were revealed on Thursday.

This comes as the Federal Government vowed to protect its foreign assets from “predators.”

There has been serious controversy following reports that the Chinese company got judgement to ground three presidential jets belonging to the Federal Government.

In 2001, China and Nigeria signed a bilateral investment treaty aimed at promoting commercial investment between the two countries.

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In 2007, Ogun State reportedly entered into a joint venture agreement with a Chinese company and another company 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 control and operation of the free-trade zone to the company.

In 2010, the Ogun Guangdong Free Trade Zone Company contracted with Zhongshan’s parent company to develop an industrial park in the free-trade zone. The goal was for Zhongshan’s parent company to develop the park and build factories in it for tenants to use.

In the first half of 2016, however, the agreement between both parties was terminated, leading to Zhongshan filing lawsuits in Nigerian federal and state courts seeking reinstatement of its contractual rights but the legal proceedings were discontinued in Spring 2018.

However, a French court, recently, authorised the seizure of three of Nigeria’s presidential jets, two of the jets – a Dassault Falcon 7X and a Boeing 737 – are part of Nigeria’s presidential air fleet that were recently put up for sale and the third, an Airbus 330 purchased by Nigeria, but not yet delivered.

Zhongshan had again dragged Ogun to court, where an independent arbitral tribunal, chaired by the former President of the UK Supreme Court, awarded the Chinese firm $74.5m compensation, which Ogun was yet to pay.

The court order prohibited Nigeria from moving or selling the presidential jets until the Chinese firm was paid the $74.5m by Ogun, its sub-national.

However, documents indicated that the Chinese company attempted to seize a jet being recovered by the country from Dan Etete as proceeds from fraudulent acts in Canada.

The Federal Government had tracked down and grounded the luxury private jet purchased by former petroleum minister, Etete, with some of the alleged proceeds of the notorious $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 documents, Zhongshan was originally engaged as a developer and manager of Fucheng Industrial Park but was asked to manage the facility after the government terminated the joint venture with CAI because it didn’t meet the necessary requirements.

The document claimed that the Ogun government cancelled the contract after it received 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 company properly entitled to manage OGFTZ.

The document read, “In 2007, the Ogun State Government, in partnership with the Guangdong province in China conceived and set up the Ogun Guangdong Free Trade Zone, which sits on 2,000 hectares in Igbesa, Ogun State.

“Ogun State signed a Joint Venture Agreement directly with China Guangdong Xinguang China-Africa Investment Limited representing Guangdong Province in the joint venture. OGFTZ houses several enterprises as well as subdevelopments, including one Fucheng Industrial Park, measuring 224 hectares. In 2010, OGFTZ contracted Zhongshan to develop and manage 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 further stated that the company had been making efforts to enforce the tribunal award.

“As of August 2024, there are court proceedings in about eight jurisdictions of the world regarding 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 company was still tracking the location of Nigerian assets abroad.

Meanwhile, a court document has revealed that the Chinese company was demanding compensation of $130.6m due to a breach of contract by reneging on terms between both parties to create the Ogun Guangdong Free Trade Zone.

The document obtained by our correspondent on Thursday, however, listed the Federal Government as the defendant because the direct agreement was between Nigeria and China and not with the company based on international treaty conditions.

The case filed at the United States District Court for the District of Columbia (No. 1:22-cv-00170) was argued April 22, 2024 and decided August 9, 2024 by Circuit Judges Millett, Katsas and Childs.

In presenting its argument, the company stated that Nigeria violated the Investment Treaty with China in five ways “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 details of the deal, the company said it invested millions of dollars and significant resources to develop and build infrastructure in the industrial park, including roads, utilities and opened services such as a hospital, hotel, supermarket, and bank.

By 2016, businesses had moved into the zone and Nigeria had collected approximately N160m in tax revenue from the free-trade zone.

It read, “In the first half of 2016, however, Ogun State terminated its agreements with Zhongshan. Ogun claimed that a different Chinese company 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 executive, urging him ‘as a friend’ to ‘leave peacefully when there is opportunity to do so, and avoid forceful removal, complications and possible prosecution.’ The next month, Ogun issued an arrest warrant for two executives, alleging a ‘criminal breach of trust.’

“Nigerian federal police arrested one Zhongshan executive at gunpoint and held him for ten days. During that time, the police denied the executive food and water, beat him, intimidated him, and questioned him about the whereabouts of the other executive.

“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), said his office and that of the National Security Adviser have commenced legal and diplomatic moves to recover the three presidential aircraft seized by the Chinese firm.

This was contained in a statement by the Special Adviser to the President on Communication and Publicity, Office of the AGF, Kamarudeen Ogundele, on Thursday in Abuja.

The statement read, “On 14th August 2024, the Federal Government of Nigeria became aware of the interim attachment of three presidential aircraft undergoing routine maintenance in France. The said temporary attachment was made pursuant to exparte orders issued by the Judicial Court of Paris dated 7 March 2024 and 12 August 2024 respectively 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 the 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 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 statement titled ‘Chinese company’s fraudulent attempt to strip Nigeria’s assets abroad’, on Thursday said the efforts by Zhongshan to take over the jets were fraudulent.

The Presidency argued that the use and nature of the jets as assets of a sovereign entity whose assets were protected by diplomatic immunity forbade any foreign court from issuing an order against them.

It said it is convinced that the Chinese company “misled” the Judicial Court of Paris regarding the use and nature of the assets it sought to attach and did not fully disclose to the court as required by law.

The statement, signed by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, “The Presidency is aware of the various failed attempts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to take over offshore assets of the Federal Government of Nigeria through 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 process that led to the provisional attachment of three Nigerian government-owned aircraft in France by the Judicial Court of Paris on March 7 and August 2, 2024.

In a statement signed by the Special Adviser to Governor Dapo Abiodun on Media and Strategy, Kayode Akinmade, the state government described the latest development as “the new antics by the Chinese company to appropriate Nigerian assets in foreign jurisdictions, as past efforts had continually failed.”

The statement described the legal process “as nothing but a total charade with fraudulent notion,” adding that the company deliberately concealed the litigation from both the Nigerian government and Ogun State, as well as their legal counsels before hurriedly securing orders of seizure.

The state government said the company must have misled the Judicial Court of Paris on the use and nature of the assets it sought to attach and not make full disclosure to the court as required by law.

The statement read, “On 14 August 2024, the attention of the Ogun State Government was drawn to the provisional attachment of three Nigerian government-owned aircraft in France by the Chinese company, Zhongshan Fucheng Industrial Investment Co. Ltd. (Zhongshan).

“Ogun State also learned of two orders of the Judicial Court of Paris dated 7 March 2024 and 12 August 2024 respectively, both obtained by Zhongshan without notice being duly given to the Federal Government of Nigeria, Ogun State or their legal counsel.

“This is the latest in a series of ill-advised attempts by Zhongshan to attach Nigerian-owned assets in foreign jurisdictions, none of which have to date led to the recovery of any sums from Nigeria.

“Each of the three aircraft is used solely for sovereign purposes and as such are immune from attachment under international and French laws.

“In obtaining the provisional attachments, Zhongshan deliberately withheld information from the Federal Government of Nigeria, Ogun State and their legal counsel.

“Just like the P&ID case, this is another unfortunate case of unscrupulous individuals masquerading as foreign investors with the sole aim 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 current State Administration took office, the hearing at the arbitration had been all but concluded. The Arbitral Panel awarded over 60 million USD against the Federal Government of Nigeria (FGN) which was a co-Defendant, when all Zhongshan had done was to build a perimeter fence around the free-trade zone. Needless to say this was a bad/unfair decision.

“The present State Administration could not in all good conscience allow such an unconscionable and baseless decision, which would dissipate the commonwealth of the good people of Ogun State, to stand.

“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 statement read. (The PUNCH)

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Kidnappers torture 20 corps members, demand N5m each NYSC

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Oyo adopts Oriire abduction template, engages Imo, security agencies

The 20 prospective National Youth Service Corps (NYSC) members abducted by gunmen in Imo State have allegedly been subjected to physical assault by their captors, including the female victims, as the kidnappers reduced their ransom demand to N5 million per victim.

The development came as the deadline reportedly given by the abductors for payment of the ransom approached, heightening anxiety among the victims’ families.

One of the affected relatives, Alhaja Alimot Akande, whose 25-year-old sister, Kehinde Akande, is among the abducted graduates, said the victims had allegedly been beaten since Saturday.

She described the situation as “horrible, scary and overwhelming,” while appealing to the government to intensify efforts to secure the victims’ release.

Akande said the kidnappers had reduced their initial demand from N50 million per victim to N5 million each.

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“They are still demanding N5 million. They have come down to N5 million each,” she said.

Asked whether the N5 million was being demanded for each of the 20 victims, she replied: “Yes.”

She said she could not confirm how much had been raised towards the ransom, explaining that she was not privy to arrangements between the abductors and other families.

“I cannot say because I do not know how much they have told those people that they have,” she said.

According to Akande, her sister told her that the abductors had started beating the victims.

“Sir, we appeal to the government to please assist us in getting them rescued out of that place. When I spoke to my sister, they started beating them since yesterday,” she said.

Asked whether the female victims were also being assaulted, she said: “They are not sparing anybody. They are beating all of them.”

Akande also said one of the abducted corps members had been allowed to communicate with his father, alleging that the kidnappers monitored the calls as part of their efforts to assess the family’s ability to raise the ransom.

She said the abductors would alert the victim whenever his father called and allow him to speak to him.

She added that the families had been relying on assurances from the police while efforts continued to raise the ransom.

“The police are telling us to still be buying time. We are still looking for the money. Depending, they will see them rescued,” she said.

Akande confirmed that her family was directly affected by the incident, identifying her abducted sister as Kehinde, 25.

Oyo engages Imo, security agencies

Meanwhile, the Oyo State Government said it was maintaining contact with the Imo State Government and security agencies as efforts intensified to secure the release of the abducted graduates.

The state Commissioner for Information, Prince Dotun Oyelade, said the government was actively involved in efforts to rescue the victims despite the abduction occurring outside Oyo State.

Oyelade said the government was drawing on its experience from the recent abduction of students and teachers in Oriire Local Government Area in its engagement with the Imo authorities.

“We are in close contacts at government-to-government level and actively with the security apparatus in Oyo and Imo states,” he said.

“We are volunteering our template and experiences garnered during the Oriire kidnapping, and the report of the Judicial Inquiry just submitted last week by the Hon. Justice (Professor) Mojeed Owoade Panel is coming in handy in our bilateral discussions on the matter.”

He explained that the government would not disclose all aspects of its strategy because of the sensitive nature of the operation.

“Governments all over the world are not in the habit of disclosing all they are planning in delicate situations like this,” Oyelade said.

The commissioner, however, said the Federal Government and the Commander-in-Chief of the Armed Forces should provide answers on the broader national security response to the incident.

“The pushback should be on the Federal Government and the Commander-in-Chief of the Armed Forces, who are in charge of national security, on what they have done in 72 hours,” he said.

Oyelade also referred to Governor Seyi Makinde’s recent intervention over the abduction of students in Borno State, noting that the Borno incident occurred on the same day as the Oriire abduction.

He said Makinde had appealed to the Federal Government to expedite action on the rescue of the abducted Borno students.

Reaffirming the state’s commitment to the victims, Oyelade said the fact that the graduates were abducted in Imo did not absolve the Oyo Government of its responsibility to its citizens.

“Oyo State Government had not and will not abandon its citizens. We will continue to work endlessly and desperately to secure the release of our children,” he said.

How the graduates were abducted

The 20 prospective corps members were abducted on Thursday while travelling from Ibadan to their respective NYSC orientation camps in two buses.

The vehicles were reportedly attacked by gunmen along the Owerri-Onitsha Road in Umunoha, Imo State, while the graduates were travelling to orientation camps in Abia and Akwa Ibom states.

The incident triggered concern among the affected families, particularly after the parents said the kidnappers initially demanded N50 million for each victim — N1 billion in total — and gave them a 24-hour ultimatum to raise the money.

The parents subsequently sought the intervention of the Olubadan of Ibadanland, Oba Rashidi Ladoja, during a visit to his private residence in Bodija, Ibadan.

They were accompanied by the Oyo State Commissioner of Police, Olugbenga Abimbola, and the Aseyin of Iseyinland, Oba Sefiu Adeyeri.

The parents appealed to the monarch to intervene, saying they could not raise the N1 billion ransom demanded.

“They have been calling us since yesterday (Friday) with a demand for N50 million ransom each. They are threatening that anything untoward will happen to our children if we fail to heed to their request,” the parents had said.

“There is no way we can raise such an amount at this period. Baba, kindly assist us. Don’t let them kill our children.”

Responding, Ladoja assured the families that efforts were being made to secure the victims’ release.

“I want to assure that your children would be rescued unharmed. We will relate whatever information we gather to you,” he said.

“The police are working round the clock to secure their rescue. Don’t worry yourself, police are up to the task, and nothing would happen to your children.”

The Oyo State Commissioner of Police, Abimbola, also said he had remained in contact with his Imo counterpart since the incident.

“I had already contacted Imo State CP. We have been talking since the day of incident, and he assured me that the victims would be rescued unhurt,” Abimbola said.z

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Eight Zamfara lawmakers dump APC over insecurity, unpaid salaries

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Eight members of the Zamfara State House of Assembly have resigned from the All Progressives Congress (APC), citing insecurity, injustice and other issues affecting the wellbeing of the people.
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Parents of abducted corps members beg Olubadan: We can’t raise N1bn ransom

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Parents of the 20 abducted prospective National Youth Service Corps members, PCMs, were thrown into profound sadness, yesterday, leading them to appeal to the Olubadan of Ibadanland, Oba Rashidi Ladoja, to assist in rescuing their children from the kidnappers’ den.

The distraught parents, who visited Ladoja at his private residence in Bodija, Ibadan, along with the Commissioner of Police in Oyo State, Olugbenga Abimbola, and the Aseyin of Iseyinland, Oba Sefiu Adeyeri, said the kidnappers threatened to kill the victims if they did not pay the N1 billion ransom within 24 hours.

This came on a day when the Inspector-General of Police, IGP, Olatunji Disu, deployed the Deputy Inspector-General of Police in charge of Operations, DIG Shehu Nadada, to Imo State to coordinate the rescue of the PCMs and other abducted passengers.

Last Thursday, gunmen attacked the 20 PCMs, who had travelled from Ibadan, the Oyo State capital, along the Owerri-Onitsha Road in Umunoha, Imo State, while on their way to NYSC orientation camps in different vehicles.

 Accusation

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Some of their parents accused the transport company that conveyed them from Ibadan of allegedly withholding vital passenger information when they approached its office for assistance.

The parents alleged that when they visited Eduak King Transport Company in Samonda, Ibadan, in a desperate search for information that could help them contact other affected families, the company refused to provide the list of next of kin of passengers aboard the ill-fated vehicle.

One of the affected mothers, Mrs Iyabo Akande, whose daughter, Kehinde Akande, was among the abducted graduates, called on the Inspector-General of Police and the government to investigate the transport operator and ensure that those found culpable were held accountable.

She said: “Please, our government and the Inspector-General of Police should help us investigate the transport company, Eduak King, located at Samonda, and put fear into them. Call them to order. “Yesterday morning at their office, we were asking for the next-of-kin list so we could contact other parents, but they refused to present it or assist us. They must be held accountable.”

Another parent, Olawale Olaleye, whose daughter was also among the victims, expressed concern over what he described as the company’s continued transport operations despite the abduction and the distress the incident had caused the affected families.

According to him, the parents were surprised to find the company loading another vehicle when they visited its premises to seek information and assistance.

He said: “We went to Samonda, to Eduak King. Surprisingly, they were already loading another vehicle. People are complaining. The company should be held liable.”

Plea to Olubadan

But speaking at the Olubadan’s residence, yesterday, Alhaja Akande and Oyebola Akande, who spoke on behalf of the families, said the kidnappers had been calling since Friday, demanding N50 million for each victim.

 “They have been calling us since yesterday (Friday) with a demand for N50 million ransom each. They are threatening that anything untoward will happen to our children if we fail to heed their request,” the parents pleaded.

“There is no way we can raise such an amount at this time. Baba, kindly assist us. Don’t let them kill our children.”

They appealed to the Olubadan and the police commissioner to intervene urgently, expressing fears that the lives of their children could be in danger if the abductors carried out their threats.

Responding to the appeal, Oba Ladoja assured the families that concerted efforts were being made by security agencies to rescue the abducted graduates alive and unhurt.

He said: “I want to assure you that your children will be rescued unharmed. We will relay whatever information we gather to you. The police are working round the clock to secure their rescue. Don’t worry yourself; the police are up to the task, and nothing will happen to your children.”

Also speaking, the Oyo State Commissioner of Police, Olugbenga Abimbola, disclosed that he had been in constant communication with his counterpart in Imo State since the incident occurred, expressing confidence that the victims would be rescued safely.

“I had already contacted the Imo State CP. We have been talking since the day of the incident, and he assured me that the victims would be rescued unhurt,” he said.

However, the police commissioner did not disclose whether any ransom had been paid by the families or provide specific details of the ongoing rescue operations.

Deployment

Meanwhile, the Force Public Relations Officer, CSP Anietie Iniedu, in a statement, yesterday, said IGP Disu had deployed the Deputy Inspector-General of Police in charge of Operations, DIG Shehu Nadada, to Imo State to coordinate the rescue operation.

Iniedu said the DIG arrived in Imo State with two Commissioners of Police and conducted an on-the-spot assessment of the situation and the ongoing search-and-rescue efforts.

He said the DIG also reviewed the operational strategies, deployment of personnel and operational assets, and provided further directives to strengthen the coordinated response.

The police spokesperson noted that the assessment was conducted alongside the Imo State Commissioner of Police, Audu Bosso; the Commissioner of Police, Federal Operations, Akpan Anifiok; the Commissioner of Police in charge of the Police Mobile Force; as well as other service commanders and members of the Management Team of the Imo State Police Command.

Iniedu added: “The police are working in close coordination with sister security agencies to ensure the safe rescue of the abducted persons and the apprehension of the perpetrators. The DIG Operations, DIG Shehu Umar Nadada, assured members of the public that the Nigeria Police Force is committed to securing the safe rescue of the 20 abducted persons and will sustain the operation until the mission is successfully concluded.

“He urged members of the public and the media to remain calm and vigilant and encouraged anyone with credible information that could assist the operation to promptly contact the police or the nearest security formation. All information received will be treated with strict confidentiality. Further updates will be issued as the operation progresses.”

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