…Today, the Ogun State Government weighed in, describing the seizure as ”shocking”, arguing that the Judicial Court of Paris has been misled as to the use and nature of the assets it seeks to seize
By Ikemefuna Charles
THUR AUG 15 2024-theGBJournal|The history of Nigeria’s business ecosystem, particularly the public sector arena, is full of implausible tales. There was the a former aviation minister who sold the country the dummy of an Air Nigeria. He spent billions on non existent airline until he left the office, a monumental fraud.
There is also the story of the Port Harcourt refinery whose re-opening has become a subject for parody. Then the story of the Ajaokuta steel mill, as well as the ill-fated P&ID scam. Too numerous to recount.
However, even by all known standards, the event of this week involving the seizure of Nigeria’s Presidential jet in France, has been extraordinary. Just as the country was recovering from the news of the purchase of new jets for the president and the attendant backlash, a court in France issued an order for the seizure of three president aircrafts, citing breach of contract involving a Chinese firm, Zhongshan Fucheng Industrial Investment Co. Ltd. (Zhongshan).
Today, the Ogun State Government weighed in, describing the seizure as ”shocking”, arguing that the Judicial Court of Paris has been misled as to the use and nature of the assets it seeks to seize and not made full disclosure to the court as required by law.
The orders for the seizure was issued way back on the 7th of March 2024 and 12 August 2024 respectively, ”both obtained by Zhongshan without notice being duly given to the Federal Government or Nigeria, Ogun State or their legal counsel,” according to the Ogun State Government.
Ogun State Government went further to explain that each of the three aircrafts is used solely for sovereign purposes and as such are immune from attachment under international and French law.
”In obtaining the provisional attachments, Zhongshan deliberately withheld information from the Federal Government of Nigeria, Ogun State and their legal counsel,” Ogun State said in a statement signed today by Kayode Akinmade, Special Advise on Media and Strategy to the Governor.
Ogun State, claiming ignorance of the orders issued nearly five months ago, is saying now that in conjunction with the Federal Government of Nigeria, it ”has taken swift action to ensure that these provisional attachments are lifted without delay.”
If the Ogun State Government succeeds in overturning the seizure, the Presidency is expected to lead efforts to explain its role in the underlying contract between Ogun State and Zhongshan executed way back in 2007, 12 years before the present administration.
Meanwhile, the Ogun State Government says the contract was for the management of a free-trade zone. The parties entered into a dispute in 2015 with arbitration commencing in 2016.
Ogun State has done its bit to exonerate the Federal Government in a very lengthy public explanation.
The state government wrote; 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 8 different jurisdictions. Currently, there are pending appeals against recognition orders issued in both the US and UK.
On the further advice of counsel, Ogun State also engaged Zhongshan in settlement discussions on reasonable terms. The last meeting attended by several officials of Ogun State, including His Excellency Prince Dapo Abiodun – the Governor of Ogun State, and the Honourable Attorney General/Minister of Justice lasted for three days, in September 2023 in London.
Zhongshan’s initial reasonable readiness to consider Ogun State’s offer, was surprisingly reversed by the second day, with an insistence on the payment of the full debt. This led to a breakdown of the mediation, with parties agreeing to meet again in the first quarter of this year.
Since then, Zhongshan has in bad faith been evasive and instead embarked on a series of enforcement proceedings which the legal team appointed by the FGN and Ogun State have successfully opposed. In cases similar to the present one where Zhongshan obtained an ex-parte order, Ogun State has successfully set aside the orders.
We naturally regret any embarrassment this has caused the Federal Government of Nigeria, HE President Asiwaju Bola Tinubu, GCFR and the good people of Ogun State and re-affirm our commitment to constantly and consistently protect the integrity of the nation and its assets. We have taken all necessary legal steps to ensure that this spurious and baseless order is vacated within the shortest possible time. As a sovereign nation, whose assets are protected by laws of sovereign immunity, we vow to resist any attempts at blackmail and theatrics clearly designed to extort and embarrass our dear country.
It is important to note that Ogun State never gave up on a reasonable settlement option, with the most recent letter sent to Zhongshan, last week. Unfortunately, Zhongshan only responded after obtaining this latest order. A reasonable and objectively quantifiable settlement figure has always been our preference and continues to be an option in the resolution of this protracted dispute.”
The scope of Nigeria’s public sector corruption has scant parallel elsewhere. This case is an example of the carnage, and whether or not the Ogun State Government is able to overturn the case could depend on what other card it has up its sleeve.
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