Senator Ibikunle Amosun who was the governor of Ogun State has expressed his opposition to the Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited.
Recall, that there were earlier reports that an agreement between the Ogun State government and the Chinese company had resulted in forcefully seizing three Nigerian jets belonging to the President.
However, there was an independent arbitral ruling that awarded Zhongshan Fucheng Industrial Investment Co. Limited $74.5 million, the Ogun State government had not yielded to the ruling.
The statement released by the Amosun on the 17th of August, 2024 titled ‘Zhonfu Firm is an Imposter, it is Chinese against Chinese dispute’ addressed specific issues
Amosun had suggested that the Chinese firm had no business seizing Nigerian jets. He further emphasized that the Chinese government had disowned the Zhongshan Fucheng Industrial Investment Co. Limited.
The statement said
“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 counter-claims as to who between the two was the lawful representative of the original joint venturer, 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”.
“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.”
The letter also stated that the Chinese firms lost several court cases in Nigeria when they tendered their case.
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.”
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.”
Resources and Citations
- This Day Live – Amosun: Chinese Firm Dispute is Between Two
- Arise News – Amosun: Chinese Firm Dispute is Between Two Chinese
- Punch – Ogun FTZ dispute: I won’t allow Chinese firm scam Nigeria
- The Cable – EXPLAINER: Chinese firm’s contract dispute with Nigeria
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