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Chinese Firm Seeks to Seize Nigerian Assets Abroad
A Chinese firm, Zhongshan Fucheng Industrial Investment Co. Limited, has initiated plans to seize Nigerian assets in the United Kingdom, United States, Belgium, Canada, France, Singapore, and the British Virgin Islands because……
Zhongshan Fucheng Industrial Investment Co. Limited, a Chinese company, has initiated plans to seize Nigerian assets in the United Kingdom, United States, Belgium, Canada, France, Singapore, and the British Virgin Islands.
This comes after a French court authorized the seizure of three Nigerian presidential jets due to a dispute over a $74.5m compensation award.
The dispute began in 2007 when Ogun State entered into a joint venture agreement with a Chinese company to create the Ogun Guangdong Free Trade Zone Company.
However, the agreement was terminated in 2016, leading to Zhongshan filing lawsuits seeking reinstatement of its contractual rights. An independent arbitral tribunal awarded Zhongshan $74.5m compensation, which Ogun State has yet to pay.
The court order prohibited Nigeria from moving or selling the presidential jets until the compensation is paid.
However, documents indicate that Zhongshan attempted to seize a jet being recovered by Nigeria from former petroleum minister Dan Etete as proceeds from a fraudulent oil deal. The Federal Government has vowed to protect its foreign assets from “predators.”
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, stated that legal and diplomatic moves are underway to recover the seized aircraft.
The Presidency described Zhongshan’s actions as “fraudulent” and argued that the use and nature of the jets as assets of a sovereign entity make them immune from attachment. “The goal is clear – that Mr Etete will avoid the seizure of an asset he got with stolen Nigerian money, with Zhongshan’s connivance.”
The Ogun State Government faulted the judicial process, describing it as “a total charade with fraudulent notion.”
The state government stated that Zhongshan deliberately concealed the litigation and misled the Judicial Court of Paris.
“On 14th August 2024, the Federal Government of Nigeria became aware of the interim attachment of three presidential aircraft undergoing routine maintenance in France.”
“The Federal Government is not under any contractual obligation with the company. The case in which Zhongshan is trying to use every unorthodox means to strip our offshore assets is between the company and the Ogun State Government.”
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Source: punchng.com