Ibikunle Amosun, a former governor of Ogun state, says the federal government should refrain from negotiating with Zhongshan Fucheng Industrial Investment Co. Ltd., a Chinese firm.
Amosun was the governor of Ogun from May 29, 2011, to May
29, 2019.
In a statement on Saturday, Amosun said the allegations that
his administration sent police officers to harass and intimidate the officials
of the Chinese firm are not true.
BACKGROUND
In 2010, Zhongshan, through Zhuhai Zhongfu Industrial Group
Co. Ltd. (Zhuhai), its Chinese parent company, acquired rights to develop a
free trade zone in Ogun state.
The contractual agreement was signed under the
administration of Gbenga Daniel, a former governor of Ogun.
A year later, Zhongshan set up Zhongfu International
Investment (NIG) FZE (Zhongfu), a Nigerian entity, to manage the project with
the permission of the Ogun state government.
However, things took a different turn in July 2016 when the
investor accused the state government of abruptly moving to terminate its
appointment while attempting to install a new manager for the free trade zone.
The termination of the contract was done by the
administration of Amosun.
Subsequently, Zhongfu initiated an investment treaty
arbitration against Nigeria under the bilateral investment treaty between the
People’s Republic of China and Nigeria (the China-Nigeria BIT).
The arbitrators had ruled that Nigeria was in breach of its
obligations under the China-Nigeria BIT and awarded Zhongshan a compensation of
about $70 million.
Recently, a French court ordered the seizure of three
presidential jets belonging to the Nigerian government over a contract dispute
between the Chinese firm and Ogun state government.
A court of appeal in the United States also ruled that
Nigeria’s claim of sovereign immunity cannot stand in a commercial venture.
‘WHY MY
ADMINISTRATION TERMINATED CONTRACTUAL AGREEMENT WITH CHINESE FIRM’
Amosun said Zhongfu International Investment FXE, presented
fake information to the state government.
He added that shortly after his assumption of office in
2011, two Chinese firms—CChina Africa Investment FXE and Zhongfu International
Investment FXE—started dispute over the management rights of the Ogun Guangdong
free trade zone (OGFTZ).
The former Ogun governor said the tussle between the two
companies “grounded seamless business activities and threatened public peace
and safety within the zone and neighbouring communities”.
Amosun noted that there were claims and counterclaims on who
was the rightful manager of the free trade 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,” the
former governor said.
“Based on the
information at the disposal of the government at the time, Zhongfu
International Investment FXE was on 15/03/2012 appointed as Interim Zone
Manager pending further evaluation.
“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 People’s Republic of China, via its
Diplomatic Note 1601 dated 11th March 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.
“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.”
Amosun added that after his administration consulted with
the Nigeria Export Processing Zones Authority (NEPZA) and the Department of
State Services (DSS), a termination notice was served on Zhongfu.
“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,” he added.
“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.”
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