Zhongshan Fucheng Industrial Investment Co. Limited has announced the release of one of the three Presidential jets seized based on the order of a French court.
The Chinese firm, based on the court order, seized a Dassault Falcon 7X, a Boeing 737-7N6/BBJ and an Airbus A330-243 belonging to the federal government of Nigeria stationed at Paris-Le Bourget and Basel-Mulhouse airports.
This is as a result of a contract was revoked by the Ogun state government in 2016.
The judgment is the latest arbitration effort against Nigeria by a foreign company alleging that Africa’s most populous nation reneged on an agreement.
In 2013, Zhongfu, a subsidiary of Chinese investment company Zhongshan Fucheng Industrial Investment, and the Ogun state government signed a contract to develop a free trade area.
Zhongfu was to own 60 per cent of the joint venture under the terms of the deal.
However, three years later, Zhongfu alleged that Ogun had backed out of the deal and wanted to take over the “significant” Chinese investment in the free trade zone.
The company said a “campaign of illegal acts” against it ultimately forced it out of the agreement.
Zhongshan initiated arbitration proceedings against Nigeria in 2018.
A three-person arbitration panel in London awarded the company $70mn in damages to be paid by the federal government in 2021. The award has since grown to about $81mn with interest.
But according to a company Spokesperson on Friday, one of the jets was released after they were made aware that President Bola Tinubu would be needing it for a scheduled meeting with Frances president, Emmanuel Macron.
In a statement, he said, “Zhongshan has consistently sought to act reasonably and fairly in the course of a legal dispute with Nigeria which was not of its making.
“It has now been made aware that an Airbus A330, currently detained in France as a result of a French court order obtained by Zhongshan, is needed for the President of the Federal Republic of Nigeria to travel to a scheduled meeting with President Macron of France early next week.
“As a gesture of goodwill, Zhongshan has lifted the seizure of that aircraft immediately. This will allow it to be used for the President’s trip.”
The Spokesperson mentioned that the company remains committed to talks with the Nigerian government with a view of reaching a “reasonable compromise rapidly.”
The A330 is the new aircraft being purchased by the Nigerian federal government for use as the new main Presidential jet. It was earlier foreclosed from an unnamed German bank, according to reports by Premium Times newspaper.
The government reportedly offered around USD100 million for the widebody valued at USD600 million due to its VIP configuration. According to Premium Times, the aircraft was repossessed from an unidentified Sheikh who had defaulted on a bank loan. Florida-based L & L International LLC and AMAC Aerospace Switzerland AG are reportedly brokering the deal. The Swiss firm has a longstanding aircraft maintenance contract with Nigeria’s Presidential Air Fleet (PAF).
According to social media posts, the aircraft in question is an ACJ330-200, VP-CAC (msn 1053), to be registered as 5N-FGA. ch-aviation fleets data shows the 14.86-year-old jet is currently operated by AMAC Corporate Jet (AMK, Zurich) and is currently in maintenance in Basel/Mulhouse/Freiburg, CH. It was formerly operated by Saudi Arabia’s Mid East Jet (Jeddah International).
@Daily Trust with additional report from Premium Times