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Three jets of the presidential air fleet have been seized by authorities in France and Switzerland, following an order from a French court.
According to Premium Times, the court authorised the confiscation of the aircraft due to a long-standing business dispute between Ogun State and a Chinese company, Zhongshan.
The jets, which include a Dassault Falcon 7X, stationed at Paris-Le Bourget airport, a Boeing 737, and an Airbus 330 located at Basel-Mulhouse airport in Switzerland, have been grounded as part of the enforcement of a $74.5 million arbitration award in favour of Zhongshan.
Sources to the media that the aircraft were undergoing maintenance when the order for their seizure occurred. The Nigerian government reportedly paid over $100 million for the Airbus A330, which has not yet been delivered to the country.
The seizure stems from a 2016 dispute when the Ogun State government revoked Zhongshan’s contract to manage an export processing zone. Following the termination, Zhongshan initiated an investment treaty arbitration against Nigeria, citing the bilateral investment treaty between China and Nigeria.
Chaired by a former President of the UK Supreme Court, the arbitration tribunal awarded Zhongshan $55.7 million, with an additional $9.4 million in interest and legal costs amounting to £2.86 million.
Although the Nigerian government has yet to officially comment on the seizure of its assets, the court prohibits the movement, sale, or purchase of the aircraft until Zhongshan receives its compensation.
The court order, as documented, grants Zhongshan the authority to enforce the seizure with the assistance of bailiffs, who are authorised to take all necessary measures to ensure the jets remain grounded.
The Ogun State government and Zhongshan have been embroiled in a bitter dispute since 2016, following the state’s decision to replace Zhongshan as the interim manager of the Ogun Guangdong Free Trade Zone.
Zhongshan’s parent company, Zhuhai Zhongfu Industrial Group Co Ltd, had agreed in 2010 to develop and manage Fucheng Industrial Park within the zone, a deal that later unravelled, leading to the current legal battle.
THE WILL NEWS