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Former Ogun Governors Unite Against Chinese Firm Over Seizure of Presidential Jets, Label Company a Scammer

Ademola Damilola by Ademola Damilola
August 18, 2024
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Former Ogun Governors Unite Against Chinese Firm Over Seizure of Presidential Jets, Label Company a Scammer
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Two former governors of Ogun State, Ibikunle Amosun and Gbenga Daniel, have pledged their support to the Federal Government in its efforts to recover national assets recently seized by a French court. The assets in question include three presidential jets—a Dassault Falcon 7X, a Boeing 737, and an Airbus 330—which were seized following a judgment obtained by Zhongshan Fucheng Industrial Investment Company Limited, a Chinese firm.

The legal battle stems from a 2007 joint venture agreement between the Ogun State Government, Zhongshan, and another company to establish the Ogun Guangdong Free Trade Zone. However, the agreement fell apart in 2016, leading Zhongshan to file lawsuits in Nigerian courts, which it ultimately lost. The company then turned to a French court, which awarded it $74.5 million in damages and prohibited Nigeria from moving or selling the jets until the payment is made.

In separate statements on Saturday, both Amosun and Daniel condemned Zhongshan, describing the company as a scammer with no legitimate claim to compensation. Amosun emphasized that Nigeria should not entertain any negotiations with Zhongshan, as doing so would validate an unlawful entity with no standing to claim national assets.

Amosun detailed the timeline of events leading to the current situation, explaining that his administration had appointed Zhongfu International Investment FXE, a subsidiary of Zhongshan, as an interim manager of the Free Trade Zone in 2012. This appointment was made to prevent unrest amidst a dispute between Zhongfu and another Chinese company, China Africa Investment FXE, over management rights to the zone. However, the state government later discovered that Zhongfu’s claims were based on falsehoods aimed at de-marketing China Africa and seizing state-owned assets.

After receiving a diplomatic note from the Chinese government in 2016, Amosun’s administration recognized China Africa as the rightful investor and terminated Zhongfu’s management rights. Amosun stressed that multiple Nigerian courts had dismissed Zhongfu’s claims, and he expressed readiness to cooperate with federal agencies to ensure Nigeria is not scammed by the Chinese firm.

Similarly, Gbenga Daniel, now a Senator representing Ogun East Senatorial District, vowed to provide documents that could assist the Federal Government in its case against Zhongshan. Daniel described the situation as a sensitive issue involving national assets that all Nigerians should be concerned about. He also offered to help President Bola Tinubu find a diplomatic resolution to what he termed a national embarrassment.

In response to the controversy, the Federal Government has issued a warning to state governments, urging them to avoid entering foreign or international negotiations without involving the Ministry of Foreign Affairs. Foreign Minister Yusuf Tuggar criticized the Ogun State Government’s handling of the agreement with Zhongshan, noting that it was made without federal oversight, leading to the current predicament. Tuggar emphasized that international negotiations require expertise and should not be managed solely by sub-national actors.

The Minister called for stricter adherence to protocol in future agreements to prevent similar issues from arising and reiterated the need for all international arrangements to be registered with the Ministry of Foreign Affairs and the Federal Government.

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