The recent seizure of three presidential jets in France by Zhongshan Funcheng Industrial Investment Ltd following a French court ruling over a dispute between the Chinese company and Ogun State government is a national embarrassment. The confiscated presidential jets include, a Dassault Falcon 7X, a Boeing 737-7N6, and the new Airbus A330.....CLICK HERE TO READ THE FULL ARTICLE>>>
However, Zhongshan later released the new Airbus A330 to enable President Bola Tinubu travel to France. Surprisingly, the new aircraft was acquired by the federal government at a whopping cost when Nigerians are suffering untold hardship.
The contract which was entered into by the Gbenga Daniel administration in 2007 was reportedly terminated by the Ibikunle Amosun administration over contentious issues. While the management of Zhongshan said it was forced out of the deal through what it calls a ‘campaign of illegal acts’ by the Ogun State government, the Ogun State government had debunked the allegation, stating that the Chinese firm was an ‘impostor’, with the sole objective of defrauding the government.
The Federal Government later waded into the matter, with the Attorney-General of the Federation, Lateef Fagbemi (SAN), invoking the doctrine of ‘sovereign immunity’ which he argued ought to have barred the Chinese firm from grounding the presidential jets in France.
At a time the government is wooing foreign investors to revamp the economy; the matter will likely erode their confidence.
Chinese firm had since March 21, 2021, obtained from an Arbitration Tribunal in the United Kingdom (UK), a compensation totaling $74.5 million, equivalent to £57.8 million British pounds to be paid by the Ogun State government.
According to the Chinese firm, the Ogun State government declined to pay the amount awarded against it by the Arbitration Tribunal.
Similarly, a Court of Appeal in the United States (US) recently ruled that the Chinese firm could proceed to confiscate Nigeria’s assets overseas. The court did not agree with the federal government’s defence of sovereign immunity.
In the enforcement of that order, two Guests Houses owned by the federal government, located in the highbrow area of Liverpool, UK, have been reportedly shutdown and confiscated by the Chinese firm.
Last week, the two properties were listed for sale on eBay, a global marketplace platform, based in San Jose, California, where legal goods can be bought and sold. The two Guest Houses are valued at £1.3millio and £1.7million, respectively.
Besides, a $57million luxury jet, Bombardier 6000 type BD-700-1A-10, owned by Nigeria was also confiscated by the Chinese firm in Canada. The luxury jet was first seized by the federal government from former minister of Petroleum Resources in 2016 over corruption allegations.
This matter should not be allowed to drag for too long. We believe that an amicable resolution of the matter is a possibility through diplomatic channels. This mater should not be allowed to sour the good relations between Nigeria and China. Sadly, Nigeria has passed through this ugly path before.
In 2010, the London-based Process and Industrial Development (P&ID) had a failed contract deal for the construction of a Gas processing plant in Calabar, Cross River State. The deal failed in 2012.
The Federal Government was lucky to have been spared the payment $11.5billion in damages. The amount represents the claims of the failed contract agreement and interest accruing to it.
But victory came Nigeria’s way when the Judgment of the Commercial Court of England and Wales, presided by Justice Robin Knowles halted the enforcement of the $11.5billion damages earlier awarded to P&ID.
Before he left office, the Jonathan administration had offered an out of court settlement worth $800 million, but the Buhari government rejected the arrangement and initiated a case against the P&ID and won. We expect the Tinubu administration to follow suit. The matter should be handled expeditiously. Let officials of the government avoid needless comments on the matter.
Ogun State government should work in concert with the federal government to resolve the matter. The P&ID had in 2012 sought from the London Court of International Arbitration Tribunal an initial compensation of $5.96billion from the Nigerian government.
In 2017, the Arbitration Tribunal ruled in favour of P&ID and awarded against Nigeria, the sum of $6.6billion, with interest fixed at seven per cent or $1milliom daily, effective May 2013. The Arbitration Tribunal had ruled that Nigeria breached the contract deal with P&ID for the Gas Supply and Processing Agreement (GSPA) that allegedly frustrated the building of the gas supply project.
But in dismissing the claims by P&ID, Justice Knowles of the UK Commercial Court agreed with Nigeria’s legal team that the contract awarded to P&ID was obtained by fraud, noting in its judgment that the firm gave bribes to some Nigerian officials in connection with the gas contract but failed to disclose this at the Arbitration Tribunal.
Henceforth, we enjoin federal and state governments to consult with experts before signing trade agreements with foreign investors. Doing so will save the country the monumental embarrassment arising from the saga…CONTINUE READING>>
