Amosun Accuses Chinese Firm of Attempting to Scam Nigeria in Ogun Deal

Former Ogun State Governor, Ibikunle Amosun, alleges that a Chinese company is trying to defraud Nigeria through a controversial deal, following the recent seizure of presidential jets.

The ongoing conflict between the Nigerian government and Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese company was addressed by Ibikunle Amosun, who is a Former Governor of Ogun State.

The reason behind three Nigerian government aircraft being seized in Europe is a disagreement originating from the cancellation of an Ogun State contract in 2016.

On Saturday, Amosun released a statement detailing the contribution his leadership made to the issue.

He stressed that his administration had acted with sincerity to safeguard the welfare of Ogun State and guarantee equitable business conduct.

The ex-governor declared his willingness to collaborate with the present leadership in safeguarding against any deceitful practices by the company.

Upon taking office in May 2011, Amosun’s administration faced a dispute between two Chinese corporations – China Africa Investment FXE and Zhongfu International Investment FXE – both contending for the management of Ogun Guangdong Free Trade Zone (OGFTZ), according to his explanation.

The rivalry led to noteworthy disturbances in the zone’s business operations.

As stated by Amosun, Zhongfu International Investment FXE portrayed themselves as a reputable party and disclosed detrimental details about China Africa Investment FXE.

After considering the given details, Zhongfu was named as a provisional zone manager in March 2012 until additional investigations could be conducted.

Later on, it was uncovered that Zhongfu’s assertions were fictitious. In 2016, the Chinese government issued a diplomatic note setting forth that China Africa Investment FXE had invested in the area lawfully. As a result of this clarification, the Ogun State Government ended Zhongfu’s managerial responsibilities in May 2016.

Despite pursuing legal actions against the government in numerous courts, Zhongfu was unsuccessful as stated by Amosun.

Contrary to the allegations made, the ex-governor emphasized that his administration did not resort to any intimidation measures.

He implored the Nigerian administration to approach the issue with comparable resolution exhibited in the P&ID lawsuit and turn down any discussions with Zhongfu International Investment FXE.

The title of Amosun’s statement is “Chinese disputes against Chinese: Zhongfu firm an impostor.” The statement explains that upon assuming office on May 29, 2011, two separate Chinese companies – China Africa Investment FXE and Zhongfu International Investment FXE – both claimed rights to manage the Ogun Guangdong Free Trade Zone (OGFTZ).

The intense business feud and competition among Chinese companies quickly escalated, resulting in disrupted commercial operations and jeopardizing public order both within the Zone as well as surrounding areas.

There was a dispute over the rightful representative of Guangdong Province, China as the original joint venturer and thus who had authority to oversee management of the Zone. This involved opposing assertions from both parties.

“Zhongfu International Investment FXE assumed the persona of a caring and authentic tenant and stakeholder in Zone. They provided highly detrimental details about Guangdong Province’s official representatives, China Africa Investment FXE – who are joint venturers and lawful managers within the area. Afterwards, Zhongfu requested to be designated as temporary zone managers.”

On 15/03/2012, Zhongfu International Investment FXE was appointed as Interim Zone Manager according to the information available to the Government at that time. The purpose behind this decision was to appoint a responsible individual who could prevent undesirable and unfavorable developments in the area until our fact-finding investigation is completed.

Upon investigation, it was found that the information and allegations made by Zhongfu International Investment FXE about China Africa Investment FXE were entirely fabricated falsehoods.

The Ogun Government was unaware that Zhongfu International Investment FXE’s true intentions were to undermine China Africa Investment FXE and clandestinely acquire the State-owned assets of Guangdong Province in China, as well as ownership and management rights over their business adversary.

It was not until later, on 11 March, 2016, that the Chinese Government’s intervention through Diplomatic Note 1601 revealed further information.

On 11th March, 2016 the Government of the People’s Republic of China brought clarity to Ogun State Government through Diplomatic Note 1601 that affirmed China Africa Investment FXE as the rightful investor. Following extensive consultation with appropriate government units, we approved and implemented this request from Chinese authorities.

It is worth noting that Zhongfu International Investment FXE went to various Nigerian courts with the aim of asserting their legal and business rights, but unfortunately they were unsuccessful in all four cases.

After seeking guidance from the State Security Services and NEPZA, we issued a formal Termination Notice dated 27 May 2016 to Zhongfu International Investment FXE in accordance with their recommendations.

To ensure the records are thorough, it must be noted that Zhongfu International Investment FXE took legal action.

Two Chinese entities, Zhongfu and China Africa, are embroiled in a business dispute that will be shed light on by the results of several proceedings including Suit No HCT/417/2016: Zhongfu International Investment FXE Vs OGFTZ as well as FCT/ABJ/CS/601 / 2016: Zhongfu International Investment FXE Vs NEPZA & Ors.

On 29/3/2017, the judgement for another case with Suit No AB/04/2017 between Zenith Global Merchant International Investment Ltd and Zhongfu International Investment FXE was delivered. This ruling specifically prohibited arbitration in light of the unique circumstances surrounding a trade dispute involving two Chinese entities – Zhongfu and China Africa – that has minimal or no relation to either Ogun State or Federal Government.

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Zhongfu International Investment FXE was dissatisfied with the verdicts delivered by various courts. Consequently, it lodged petitions at different times to numerous higher authorities in Abuja such as the Presidency, Hon Minister of Trade & Investment, Attorney General & Minister of Justice, Inspector General of Police and EFCC alongside others including both houses of National Assembly- Representatives and Senate.

Our actions were defended successfully before all levels of government, and our position was agreed upon by each organ. However, shortly thereafter in May 2019, our administration departed from office.

To conclude, while acknowledging the current endeavors of both the Ogun State Government and Federal Government of Nigeria without any bias, I want to emphasize with complete accountability that:

The agreement made with our predecessor in 2007 at the beginning of the Zone is still effective, and there was no necessity for any contract negotiations during our eight-year term.

Our administration did not send police or any security agent to harass, intimidate, or beat anyone. Any such situation must have originated from the disputing rivals trying to outdo each other. If there is an allegation of wrongdoing, we urge security agencies to thoroughly investigate and uncover the truth.

Giving any attention to Zhongfu International Investment FXE by Nigeria would be equivalent to promoting an illegal entity that lacks the standing to take possession of our shared inheritance; therefore, it should not occur.

Considering the previous statement, dealing with Zhongfu International Investment’s FXE issue must be handled in a manner similar to Nigeria’s handling of the P&ID case. Negotiation is unjustified.