Breaking News: Debts and liabilities owed to Zhongshan Fucheng Industrial Company Limited a Chinese construction firm has led to the seizure of three jets belonging to the Nigerian presidency and other Nigerian assests through a court case in Paris, France.
According to a statement from the Nigerian presidency in reaction to the embarrassing situation they explained that in year 2007 Zhongshan Fucheng Industrial Company Limited entered an agreement with Ogun state government to build a free-trade zone in the state.
But by 2015 a dispute arose between the two parties which led to a court case that started in 2016. By 2019 the case was concluded with a verdict that awarded the sum of $60 million in fines against the Nigerian government to be paid to Zhongshan Limited.
Dispute between Ogun State and Chinese Firm
The Nigerian government side further explained that though the dispute was between the Ogun state government; a subnation within Nigeria and the Chinese firm, the enforcement of the fine was directed at the entire Nigerian federation, in line with international law.
In a statement by Nigeria’s Attorney General Mr. Lateef Fagbemi made available to 9AM News Nigeria he said “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.
Chinese firm reacts
In reaction to the statement issued by the Nigerian government on the matter the Chinese firm Zhongshan Limited explained that it was only interested in exercising its rights under international law and norms.
It explained that the court had issued a verdict in its favor and the judgement is ratified and upheld in multiple countries.
In the firm’s statement made available to Ogasabi of 9AM News Nigeria it said “The French court was fully aware of the facts when it reached its decision.
Far from being just a fence, the Ogun Free Trade Zone was featured as a significant international investment by the Economist Intelligence Unit.
Zhongshan has for a long time been ready to enter serious negotiations with the Federal Government of Nigeria to settle this case and still awaits an indication that the government is equally willing.
The two statements issued from both parties imply that there will be fresh rounds of legal proceedings in foreign industrial courts to resolve the issue as both sides are yet to arrive at any form of settlement.
Zhongshan Limited initially indicated readiness to accept an offer from the Ogun state government but reversed its decision only day after, insisting that the Ogun state government must pay in full the $60 million awarded in its favor.
This led to a collapse of the mediation process. The Ogun statement is still proposing a settlement option but Zhongshan Limited has been evasive and neither forthcoming nor yielding.
