Zhongshan, the Chinese company whose export processing zone management contract was revoked by the Ogun State government in 2016, on Thursday said it is ready to settle with the Nigerian government.
The company disclosed this in a statement sent to PREMIUM TIMES on Thursday.
“Zhongshan has only ever sought to assert its rights under international law and is confident in its case. The independent arbitral panel was found unanimously in its favour, and courts in multiple countries have upheld the view that the panel’s compensation should be enforced. 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 statement said.
PREMIUM TIMES had on Wednesday reported how a French court authorised the seizure of three presidential jets linked to the Federal Government of Nigeria.
The court order prohibits the jets’ movement, sale, or purchase until Zhongshan receives the awarded $74.5 million. Bailiffs have served papers for each aircraft.
Reacting in a statement on Thursday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, described the French court’s order attaching Nigeria’s presidential jets as a result of the arm-twisting tactic by a Chinese company.
Mr Onanuga highlighted various efforts the federal government and the Ogun State government had made to resolve the matter.
He said the Zhongshan “withheld vital information and misled” the French court in Paris into attaching the Nigerian government’s presidential jets.
He said the jets were on routine maintenance in France when the court order was issued.
“The use and nature of the Presidential jets as assets of a Sovereign entity whose assets are protected by diplomatic immunity forbid any foreign Court from issuing an order against them,” the statement said.
Background
The Ogun State government and Zhongshan have been locked in a long-drawn battle over the management of an export processing zone in the South-west state.
On 29 June 2010, Zhuhai Zhongfu Industrial Group Co Ltd, the parent company of Zhongshan, and the Ogun Guangdong Free Trade Zone (OGFTZ) entered into a framework agreement on establishing Fucheng Industrial Park within the zone. The agreement gave Zhuhan the right to develop and run Fucheng Park within the zone.
The Nigeria Export Processing Zones Authority registered Zhongfu International Investment (NIG) FZE, a subsidiary of Zhongshan, as a free trade zone enterprise within the OGFZ in 2011. The Ogun State government later appointed Zhongfu as the interim manager/administrator of the zone.
However, in July 2016, Zhongfu alleged that the Ogun State Government had moved to terminate its appointment and appoint another manager for the free trade zone.
Zhongfu then launched an investment treaty arbitration against Nigeria, citing the bilateral investment treaty between the People’s Republic of China and Nigeria.
On 26 March 2021, an arbitral tribunal issued a final award of $55,675,000 in addition to an interest of $9.4 million and costs of £2,864,445 payable by Nigeria to Zhongshan.
This newspaper also learned that afterwards, the federal government repeatedly pleaded with the Ogun State Government to resolve its dispute with Zhongshan amicably, but no settlement was reached.
Why does the entire country of Nigeria be held liable for a failed contract entered into by one state government, where the benefits of that contract would not have extended to every region of the country? Now the whole country has to pay for the mistakes of one state? Why is the country so stupid to enter into these types of contracts with powerful foreign entities, and agree to arbitration under the laws of a foreign country? In Zambia a previous administration even signed a contract written in Chinese Mandarin, without understanding a single word of Mandarin? Stupid, stupid, stupid.