…says Chinese firm wrong to seize them
Nigeria’s former Minister of Justice and former Attorney General of the Federation, Michael Aondoakaa, has said that the Chinese firm Zhongshan Fucheng Industrial Investment Co. Ltd, were “completely” wrong to seize three of Nigeria’s presidential aircraft, as they are not used for commercial purposes, but are used purely for running of state operations.
Aondoakaa also revealed that the Nigerian government was fully involved in the dispute between Ogun State and Zhongfu, the Nigerian subsidiary of Zhongsang, because of the trade treaty that was signed between the Nigerian Government and the Republic of China in 2001, which allowed access for contracting investors into Nigeria.
The former AGF said this in an interview with Arise TV on Monday where he discussed the legal dispute between the Ogun State Government and Zhongfu, a Chinese firm whose contract was revoked under Amosun’s administration, which led to a Paris court ordering the seizure of three jets belonging to the Nigerian government over an arbitration award in favour of the Chinese firm.
He said, “If you look at the issue of attachment of presidential planes, that is where completely, the foreign firms are wrong.”
He explained further:, “But now, sovereign immunity operates in two ways. What the Appeal Court in the US dealt with was the procedure, the procedural aspect. I’m afraid when people will say the Appeal Court said, or the US said they can attach Nigerian properties everywhere. I don’t think that was its extreme position by those who felt frightened by the country. It has to do- recognition of awards has to be country by country. When you register, the country will evaluate it. And two areas the country will look at is that, did the arbitrators who rendered the final arbitral award exceed their jurisdiction, or was the arbitral award contrary to public policy. Nigeria is not hinging on the issue of public policy, that is it, but of course, issuing the issue of sovereign immunity.
“But now, where I have a major quarrel with the Chinese people is that the sovereign immunity, even though after the New York Conventions have been classified into two- absolute sovereign immunity with properties that belong to the state which the state uses for operation of State, not for commercial bases, are immune. They’re considered sovereign immunity. For instance, military hard wares, presidential planes, because presidential planes are not used for commercial purposes. Presidential planes are used basically for state functions, and those ought to ensure absolute sovereign immunity.”
Aondoakaa then revealed that in 2001, a treaty for the Reciprocal Promotion and Protection of Investments was signed between China and Nigeria, which “guaranteed all contracting investors, which is broadly defined, into Nigeria, and gave them even a provision for expropriation, which means you cannot take over their asset.”
He then said that the treaty that was signed in 2001 contained a clause that talked about expropriation, which allowed for compensation if the state takes a step that depreciates investments.
