A French court has reportedly authorised the seizure of three presidential jets linked to the Federal Government of Nigeria.
Two of the jets, part of the Nigerian presidential air fleet, were recently put up for sale, while the third, an Airbus 330, was purchased by Nigeria but not yet delivered.
The seizure of the presidential jets is a result of an application by Zhongshan, a Chinese company whose export processing zone management contract was revoked by the Ogun State government in 2016, local news outlet, PREMIUM TIMES reported, citing sources familiar with the matter.
An independent arbitral tribunal chaired by the former President of the UK Supreme Court awarded Zhongshan about $74.5 million in compensation, but the Ogun State government, which has a dispute with Zhongshan, has yet to honour the award.
The Federal Government of Nigeria is facing this backlash over an action taken by one of its subnationals with which Zhongshan has a business dispute.
The seized presidential jets include a Dassault Falcon 7X at Le Bourget airport in Paris, a Boeing 737, and an Airbus 330 at Basel-Mulhouse airport in Switzerland. All are currently undergoing maintenance. The Nigerian government reportedly paid over $100 million for the Airbus.
The court order prohibits the movement, sale, or purchase of the jets until Zhongshan receives the awarded $74.5 million. Bailiffs have served papers for each aircraft.
The Nigerian government is yet to comment on this report.
The confiscation of the planes follows the recent seizure of Nigerian-owned buildings in Liverpool, England, by a UK court in relation to the same dispute with Zhongshan. The properties against which Zhongshan secured charging orders are located at 15 Aigburth Hall Road, Liverpool and Beech Lodge, 49 Calderstones Road, Liverpool, estimated by the company to be worth between £1.3 and £1.7 million.
The Ogun State government and Zhongshan have been locked in a long-drawn battle over the management of an export processing zone in the South-west state.
On 29 June 2010, Zhuhai Zhongfu Industrial Group Co Ltd, the parent company of Zhongshan, and the Ogun Guangdong Free Trade Zone (OGFTZ) entered into a framework agreement on the establishment of Fucheng Industrial Park within the zone. The agreement gave Zhuhan the right to develop and run Fucheng Park within the zone.
The Nigeria Export Processing Zones Authority registered Zhongfu International Investment (NIG) FZE, a subsidiary of Zhongshan, as a free trade zone enterprise within the OGFZ in 2011. The Ogun State government later appointed Zhongfu as the interim manager/administrator of the zone.
But in July 2016, Zhongfu alleged that the Ogun State Government moved to terminate its appointment, and appoint another manager for the free trade zone.
Zhongfu then launched an investment treaty arbitration against Nigeria, citing the bilateral investment treaty between the People’s Republic of China and Nigeria.
On 26 March 2021, an arbitral tribunal issued a final award of $55,675,000 in addition to an interest of $9.4 million and costs of £2,864,445 payable by Nigeria to Zhongshan.
Afterwards, the federal government repeatedly pleaded with the Ogun State Government to amicably resolve its dispute with Zhongshan but still no settlement was reached, according to the report.
The order by the Enforcement Judge at the Paris Judicial Court reads as follows:
=========================================
Having regard to the foregoing application and
the reasons, therefore, Having regard to the
documents annexed hereto,
Having regard to articles L. 111-1-1, L. 111-1-2,3°, L. 511-1 et seq., R. 111-1 and R. 511-1 et seq. of the Code of Civil Enforcement Procedures,
Enforcement Judge at the Paris Judicial Court,
Authorise ZHONGSHAN FUCHENG INDUSTRIAL INVESTMENT CO. LTD located at Tower 5, Shangfeng Financial Business Centre, No. 88, Zhongshan 4th Road, East District, Zhongshan City, People’s Republic of China To seize the aircraft Dassault Falcon 7X, registration number 5N-FGU (serial number 090), Boeing 737-7N6/BBJ, registration number 5N-FGT (serial number 34260/1746), and Airbus A330-243, registration number 5N-FGA (serial number 1053), belonging to the Federal Republic of Nigeria, stationed respectively at the airport of
Paris-Le Bourget and Basel-Mulhouse international airports in the hands of any third party in the airport area of the said airport who holds it, as security for its claim of EUR 74,459,221
Let us say that this protective seizure will take place to secure and 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 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;
Let us say that the bailiffs will be able to use public force;
We hereby declare that this order may be set up against any third party holding the property subject to seizure;
Let’s just say that it will be referred to us in case of difficulty;
This order is enforceable on the basis of the minutes alone.
Date L($ JÇ in our chambers, at the seat of the Paris Judicial Court.
The enforcement judge