A Chinese firm, Zhongshan Fucheng Industrial Investment Company Limited, has disclosed the reasons behind its rejection of settlement terms and the subsequent seizure of Nigeria’s presidential jets.
The Chinese company accused Nigerian police of unlawfully detaining and mistreating its top officials during a contractual dispute with the Ogun State Government.
Zhongshan claimed that this mistreatment compelled it to take drastic measures, including the seizure of Nigerian assets abroad.
Zhongshan, a Chinese firm, alleged that its management team in Nigeria faced physical harm after being threatened by the state government.
The alleged assault on its officials was the tipping point that led the company to reject settlement offers and pursue legal action.
The Chinese company reported a loss of $1.078 billion following the termination of the contract and sought compensation through arbitration. Despite a ruling in its favor, Zhongshan asserted that the Ogun State Government failed to comply, prompting the company to seek intervention from a French court. The court then ordered the seizure of three presidential jets, including a Dassault Falcon 7X, a Boeing 737, and an Airbus 330.
“As if this treatment were not appalling enough, the Nigerian authorities followed through on their threats of physical harm to the claimant’s management team in Nigeria. The police arrested the Chief Financial Officer of Zhongfu Nigeria, Mr Wenxiao Zhao, detained him without basis or explanation in terrible conditions, and physically beat him on two occasions before releasing him—without any charge—after a week in two jails.”
Recounting his ordeal in police custody, Zhao said, “One police officer in uniform came over to me and slapped me twice on the face. Then the police officers who brought me there took me to a room where they asked me to sign a piece of paper.
“They did not say or explain what this paper was or what it said. I refused to sign the piece of paper. The police officers then took my flip-flops and placed me in a courtyard with a number of cells surrounding it. It was dark and cold, and I was standing at the gate to one of the cells.
“Another prisoner came out of that cell and asked why I was taken. I did not speak. There were also some other people who had been brought to the courtyard, and the prisoner told us to stand side by side and asked whether we had money and why we were there. If someone had no money, he would slap them.
“Then the prisoner took me aside and asked me to speak. He said that if I did not speak, he would beat me with a club. Later, a second prisoner took me aside and told me not to be afraid. However, the first prisoner came back and threatened me with a club and asked me to speak, which I did not do.
“On what I think was the third day in the Abuja police station, a lot of people were brought into the office. The police officers moved me to another office. The police officer then approached me asking what happened. I did not respond, and he hit me twice, first on the neck and the second time on the head with a fist. It was painful, and I felt numb.
“Fearing for their safety, Zhongfu Nigeria’s management team was forced to leave Nigeria. Zhongfu Nigeria tried to take preventive legal steps in the Nigerian courts to preserve their rights, but the Ogun State Government, NEPZA, and the police orchestrated the complete evisceration of the claimant’s investment in Nigeria.”
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In its statement of claim, Zhongshan detailed a series of mistreatment and harassment incidents that culminated in the jet seizures. The company alleged that its personnel, including the Chief Financial Officer of Zhongfu Nigeria Ltd., Mr. Wenxiao Zhao, were subjected to verbal and physical assault by the police.
Zhongshan further stated, “The harsh actions of the Nigerian authorities included a direct threat from the Secretary to the Ogun State Government, Taiwo Adeoluwa, to Zhongfu Nigeria’s CEO, Dr. Jianxin Han, advising him to leave peacefully while possible, to avoid forceful removal, complications, and potential prosecution.”
The Ogun State Government has denied any knowledge of the allegations, emphasizing that the incident took place before the current administration assumed office.
Kayode Akinmade, the Special Adviser to the Ogun State Governor on Media and Strategy, stated, “This incident occurred more than three years before our administration came into power. We cannot comment on matters we are unfamiliar with. However, we are committed to ensuring that our people are not disadvantaged or defrauded by any fraudulent judgments.”
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