FG to Chinese Firm: Our Jets Are Sovereign Assets, Immune from Seizure

*Commences legal, diplomatic moves to recover seized presidential aircraft

*Ogun takes steps to vacate order, faults legal process by foreign firm

*Obi demands explanation, says situation embarrassing

Chuks Okocha, Olawale Ajimotokan, Alex Enumah in Abuja and James Sowole in Abeokuta 

The federal government, yesterday, reacted to the alleged seizure of three presidential planes in Paris, France, following a dispute between a private Chinese firm and the Ogun State government, saying those aircraft are sovereign assets and, therefore, immune from confiscation.

Citing extant principles of international law, the government acknowledged that the actions of a sub-national or local entity were attributable to the state or country itself.

However, the Nigerian government said it had commenced both legal and diplomatic moves to recover the three aircraft in the presidential fleet. 

At the same time, Ogun State Government faulted the judicial process that led to the provisional attachment of the aircrafts, and said it had begun steps to vacate the order.

Labour Party (LP) presidential candidate in the 2023 poll, Peter Obi, described the reported seizure of three presidential jets as international embarrassment and demanded full explanation. 

The Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, was seeking to enforce a Final Award granted in its favour on March 26, 2021 against one of Nigeria’s sub-nationals, Ogun State.

The matter started in 2007 following a contract between the Ogun State government and Zhongshan Fucheng to manage a free-trade zone. The parties later entered into a dispute in 2015, while arbitration began the following year. After the conclusion of arbitration hearing in 2019, the arbitral panel awarded over $60 million against the Federal Government of Nigeria, a co-defendant, even when all Zhongshan had done was build a perimeter fence around the free-trade zone. 

Based on legal advice, the Ogun State government resolved to resist the enforcement of the award. The resistance was successful in eight different jurisdictions, while there were pending appeals against recognition orders issued in both the US and UK.

In addition, the Ogun State government engaged Zhongshan in settlement discussions on reasonable terms, with the last meeting, which took place in London in September 2023, having in attendance the governor, Dapo Abiodun, Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi, and several officials of the state government.

Initially, Zhongshan indicated readiness to consider Ogun State’s offer, but shifted ground by the second day, when it insisted on the government paying the full arbitration debt. This led to a breakdown of the mediation, with parties agreeing to meet again in the first quarter of this year. 

Since then, the Chinese company had been, allegedly, evasive, but embarked on a series of enforcement proceedings, which the legal team appointed by the federal and Ogun State governments successfully opposed.

Thus, since the news of the seizure of the presidential aircraft, various agencies and the Ogun State government had been shedding light on the issue.

Special Adviser to the President on Communication and Publicity, Office of the Attorney General of the Federation (AGF) and Minister of Justice, Mr. Kamarudeen Ogundele, said the steps to stay the enforcement order were being spearheaded by the AGF and the Office of the National Security Adviser (ONSA).

Ogundele said, in a statement, that the federal government became aware of the interim attachment of three presidential aircraft undergoing routine maintenance in France on August 14.

He explained that the said temporary attachment was made pursuant to ex parte orders issued by the Judicial Court of Paris dated March 7, 2024 and August 12, 2024 at the instance of Zhongshan.

The statement said, “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, the consequential enforcement actions are being directed against the federal government and its assets in line with extant principles of international law, which hold 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 aircraft, 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.”

Similarly, Special Adviser to the President on Information and Strategy, Bayo Onanuga, accused the Chinese company of employing subterfuge to acquire the offshore assets of the federal government.

In a statement, yesterday, Onanuga asserted that the presidency was aware of the various failed schemes by the Chinese firm. He insisted the federal government was not under any contractual obligation with the company.

Onanuga also lauded steps by the Ogun State government to amicably resolve the matter. He said Zhongshan had no ground to demand restitution from Ogun State Government based on the facts regarding the 2007 contract between the company and the state government.

Onanuga stated, “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.

“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.”

He stated that facts in the transaction between Ogun State Government and Zhongshan implied another P&ID case by unscrupulous and questionable individuals, who paraded themselves as investors, with the sole objective of undercutting and scamming governments in Africa.

Onanuga berated Zhongshan for withholding vital information and misleading the Judicial Court in Paris into attaching the Nigerian government’s presidential jets, which were on routine maintenance in France. He argued that the use and nature of the presidential jets as assets of a sovereign entity, whose assets were protected by diplomatic immunity, forbade any foreign court from issuing an order against them. 

Onanuga explained, “We are convinced the Chinese company misled the Judicial Court of Paris regarding the use and nature of the assets it seeks to attach and did not fully disclose to the court as required by law. This same Chinese company had tried to enforce its questionable judgement in the UK and USA but failed.

“Like the P&ID case, foreign companies are trying to defraud Nigeria with the collaboration of some bureaucrats. Zhongshan appeared to have sold the judgement they got to a venture capitalist seeking to make money by embarrassing the federal government and President Bola Tinubu.”

Onanuga assured that the federal government was working in tandem with Ogun State Government to discharge the order in Paris. He also expressed the government’s readiness to always work to protect its national assets from predators masquerading as investors.

Ogun Moves to Vacate Seizure Order

Ogun State Government faulted the judicial process that led to the provisional attachment of three Nigerian government aircraft in France by the Judicial Court of Paris on March 7 and August 2.

In a statement by Special Adviser to the Governor on Media and Strategy, Hon. Kayode Akinmade, Ogun State Government described the latest development as part of the new antics by the Chinese company to appropriate Nigerian assets in foreign jurisdictions following failure of past efforts.

The statement described the whole legal process as a charade with fraudulent intentions. It added 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 statement said the company must have misled the Judicial Court of Paris as to the use and nature of the assets it sought to attach and not made full disclosure to the court as required by law. 

The statement added that Ogun State, together with the federal government, had already taken action to ensure that those provisional attachments were lifted, even as it accused the Chinese company of reneging on the earlier discussion for an amicable resolution of the case.

It also likened the case to that of P&ID.

The statement said, “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. 

“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.”

Obi Demands Explanation, Says It’s International Embarrassment

Labour Party (LP) presidential candidate in the 2023 general election, Peter Obi, described as international embarrassment the seizure of three presidential jets in France.

Reacting to the incident, Obi frowned on the secrecy involved in both the buying and selling of presidential jets, a property of the Nigerian people.

Writing on his X handle yesterday, Obi said, “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.

“It has also thrown multiple dimensions to our leadership failure and our sensitivity to the plight of the growing poor class in our midst.

“The fact that the federal government went ahead, 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.

“And added to it is the embarrassing aspect of our country’s presidential jets being held for breaches arising for yet another dimension of inadequate leadership.

“I have been loud in my demands 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 prohibited Nigeria from moving or selling these three jets, Nigerians had no iota of information about both buying and selling. It has been done in secrecy. Federal Government property, which belongs to the people, is being managed as a personal family asset.”

Obi added that “paying as much as $100m dollars 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 per cent food inflation” was the height of insensitivity to the people’s feelings.

He stated, “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 State government follow its agreement with the Chinese firm?

“After the UK court ruling that prohibited some Nigeria buildings in Liverpool, what did both Ogun State and Federal Government do before the French court?

“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 international mess.”