A former Governor of Ogun State, Senator Ibikunle Amosun, has said he will not allow a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to scam Nigeria.

Sources reports that a contract dispute between the Ogun State Government and the Chinese company has led to the seizure of three Nigerian presidential jets.

The dispute reportedly stemmed from a 2007 agreement for the development of the Ogun Free Trade Zone, which later fell apart, leading to arbitration and, ultimately, the seizure of the jets.

Despite an independent arbitral tribunal awarding Zhongshan approximately $74.5 million, the Ogun State Government has disputed the decision and has not yet honoured the award.

In a statement on Saturday titled ‘Zhonfu firm is an imposter, it’s Chinese against Chinese dispute’, Amosun stated that Zhongfu has no legal right to appropriate any Nigerian asset.

Amosun, who was governor of the state between 2011 and 2019, explained that the Chinese government has disowned the firm

The statement read, “We have read various media accounts of the above in both the print and social media. We have also read and aligned with the very appropriate responses from Ogun State and the Federal Government. At different levels, government is a continuum, and the various segments of events leading to this unfortunate situation occurred before, during and after our administration.

“Our administration assumed office on May 29, 2011. Very shortly after we took office, two different sets of Chinese companies, Messrs China Africa Investment FXE and Zhongfu International Investment FXE, laid claims to Management rights over the Ogun Guangdong Free Trade Zone (OGFTZ). The business dispute and rivalry between the Chinese concerns soon became fierce, grounded seamless business activities and threatened public peace and safety within the Zone and neighbouring communities.

“There were claims and counterclaims as to who between the two was the lawful representative of the original joint venture, Guangdong Province, China and consequentially who had the right to manage the Zone.

“Zhongfu International Investment FXE, pretending to be a concerned and genuine tenant and Zone stakeholder, volunteered very damaging and destructive information about the official representatives of Guangdong Province, the Joint Venturer and lawful Zone Managers, China Africa Investment FXE and subsequently requested to be appointed as Interim Zone Managers.”

Amosun said based on the information at the disposal of the government at the time, Zhongfu International Investment FXE was 15/03/2012 appointed as Interim Zone Manager pending further evaluation.

He added, “The whole idea was to ensure that someone was in charge and thereby prevent unwholesome and untoward development in the Zone pending the completion of our fact-finding exercise.

“It was later discovered that the information and claims volunteered by Zhongfu International Investment FXE against China Africa Investment FXE were tissues of lies.

“Unknown to the Ogun Government at the time, Zhongfu International Investment FXE merely sought to de-market China Africa Investment FXE and to surreptitiously covert the State-owned assets of Guangdong Province in China together with the Zone ownership and management rights of their business rival.

“It was further discovered – much later – through the intervention of the Chinese Government via Diplomatic Note 1601, dated 11 March 2016.

 

“The Government of the Peoples Republic of China, via its Diplomatic Note 1601 dated March 11, 2016, clarified to the Ogun State Government, that China Africa Investment FXE was the rightful investor. After due consultation with the relevant organs of Government, we gave effect to the request of the Chinese Government.”

Amosun stated that the Chinese firm lost its case when it approached Nigerian courts in different jurisdictions to claim its legal and business rights.

It added, “We do recall, that Zhongfu International Investment FXE approached Nigerian courts in different jurisdictions to ventilate its legal and business rights. They lost all their four cases in court.

“We also consulted with and took advice from the State Security Services and the supervising Agency, NEPZA, on the best way to proceed. Accordingly, we served Zhongfu International Investment FXE with a formal Termination Notice dated 27 May 2016. For completeness of records, we must mention that Zhongfu International Investment FXE proceeded to Court.

“Among others, the proceedings in Suit No HCT/417/2016: Zhongfu International Investment FXE Vs OGFTZ and, FCT/ABJ/CS/601/2016: Zhongfu International Investment FXE Vs NEPZA & Ors will help to throw light on this business dispute between two Chinese entities- Zhongfu and China Africa.

“The final judgment in one other case, Suit No AB/04/2017: Zenith Global Merchant International Investment Ltd Vs Zhongfu International Investment FXE delivered on 29/3/2017, specifically restrained a reference to arbitration in the special circumstances of the matter being a trade dispute between two Chinese entities- Zhongfu and China Africa, with little or no connection with either Ogun State or the Federal Government.

“Not satisfied with the decisions of the various courts, Zhongfu International Investment FXE took its case, and wrote petitions at various times, to higher authorities in Abuja; the Presidency, Hon Minister of Trade & Investment; Attorney General & Minister of Justice, Inspector General of Police, EFCC and the National Assembly (both the House of Representatives and the Senate) among others.

“We successfully defended our actions at all levels before these organs of government, and they all agreed with our position. Shortly after, our administration left office in May 2019.”

The former governor also refuted claims that his administration sent police or any security agent to harass, intimidate, or beat staff of the Chinese firm.

Amosun added that he is ready to work with the Nigeran authorities to ensure that Zhongfu International Investment FXE, or any other entity, do not scam Nigeria.

He concluded, “In conclusion, without prejudice to the ongoing efforts of the Ogun State Government and the Federal Government of Nigeria, and with all sense of responsibility, I wish to categorically state that the agreement that was entered into at the inception of the Zone in 2007 with our predecessor is what is still in operation, and there was no need for any negotiation or re-negotiation of any contract when we came in and throughout our eight (8) years tenure.

“It is also not true that our administration sent police or any security agent to harass, intimidate, or beat anyone. If there was any such situation, it must have been from among the disputing rivals in the bid to outdo one another. Security agencies can further investigate the allegation and uphold the truth.

“Nigeria should not give Zhongfu International Investment FXE any listening ear as doing so would amount to indulging and, encouraging an unlawful entity without locus standi to appropriate our common patrimony.

“Stemming from the above, this matter of Zhongfu International Investment FXE should be treated the way Nigeria treated the P&ID case. There is no basis for negotiation. I am ready to work with the agencies of government in any capacity to ensure that Zhongfu International Investment FXE, or any other entity do not scam Nigeria.

“Like every Nigerian, we are concerned that a purely business dispute between two Chinese nationals and corporations has now degenerated into an unlawful attempt to appropriate Nigeria’s sovereign assets. This is unacceptable to all people of goodwill and must not be allowed to stand.”