A Paris court in France has ordered the seizure of three
jets belonging to the Nigerian government over the dispute involving an
arbitration award in favour of Zhongshan Fucheng Industrial Investment Co. Ltd,
a Chinese firm.
The court ruled that the Chinese firm should use the three
jets at the Paris-Le Bourget and Basel-Mulhouse international airports “as
security for its claim of EUR 74,459,221”.
The seized jets are Dassault Falcon 7X, with registration
number 5N-FGU, Boeing 737-7N6/BBJ, with registration number 5N-FGT, and Airbus
A330-243, with registration number 5N-FGA.
The two of the aforementioned jets have been put on sale by the federal government.
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.
A year later, Zhongshan set up Zhongfu International
Investment (NIG) FZE (Zhongfu), a Nigerian entity, to manage the project under
the permission of the Ogun state government.
However, things took a different turn in July 2016 when the
company accused the state government of abruptly moving to terminate its
appointment while attempting to install a new manager for the free trade zone.
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 ruled that Nigeria was in breach of its
obligations under the China-Nigeria BIT and awarded Zhongshan compensation of
around $70 million.
Nigeria pleaded state immunity but was turned away by Sara
Cockerill, a high court judge in the United Kingdom (UK), who said the country
abused the time frame for appealing arbitral awards.
In 2023, a court of appeal in the UK ruled that Nigeria is
liable for a $70 million arbitration award in favour of the Chinese firm.
Julian Flaux, the presiding judge, ruled Nigeria had failed
to comply with the “generous” time limit of two and a-half months to raise the issue
of state immunity.
The presiding judge said Nigeria failed to do the needful
until three months after the deadline expired.
In June, a commercial court in London granted the Chinese
firm the final order to seize two residential properties owned by Nigeria in
the UK.
THE FRENCH COURT
VERDICT
According to the court order published by Premium Times, the
court held that the seizure is to “preserve the claim arising from the
arbitration award dated 26 March 2021, made by an ad hoc arbitral tribunal.”.
“The bailiffs will be
able to go to any place where the aircraft registered 5N-FGU, 5N-FGT, and
5N-FGA are located and seize them,” the order reads.
“The bailiffs will be able to include the type of aircraft
and its registration number, as well as its main equipment and accessories, in
the seizure report.
“The bailiffs may be
assisted by any person, request any equipment, and take any measure necessary
to implement the measure ordered, and in particular, request any employee and
equipment of Paris-Le Bourget Airport and Basel-Mulhouse International Airport.
“Let’s say that the aircraft, registered 5N-FGU, 5N-FGT, and
5N-FGA, will be positioned so that the cockpit faces a wall or building or in
any other way that prevents it from taking off again autonomously.
“Once the aircraft
have been seized, the bailiffs will appoint any third party of their choice as
custodian of the aircraft registered 5N-FGU, 5N-FGT, and 5N-FGA.”
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Abeg come and seize Tinubu as well
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