Op-Ed.
Presidential jet seizure: One embarrassment too many
The recent seizure of a Presidential jet by a Chinese company for breach of contract is one national embarrassment too many. Coming shortly after the P&ID, it seems to confirm that the country has become notorious for contractual breaches and sloppy official processes, which are red flags to the international business community. Although Nigeria got a reprieve on appeal in the P&ID case, like the present one, irreparable damage had already been done to its image and reputation. For instance, international media, including the Economist, had, deservedly, lampooned the country severally over its unorthodox and uncivilized business practices in relation to contractual obligations.
The issue, which was actually between the Ogun state government and two Chinese firms, Zhongshan Fucheng Industrial Investment Co. Limited, and China Africa Investment FXE, over the management rights of the Export Free Zone, exemplifies the typical character of the government both at state and federal levels.
According to the narratives, Zhongshan Fucheng was initially awarded the contract under what the government claimed to be “false and dubious information”, as another company, China Africa, purported to be the real owner of the franchise, certified by the Chinese Embassy.
The contract was awarded by the Gbenga Daniel’s government, while the successor, Ibikunle Amusan, terminated the contract on the basis of the controversy over legal identity and unethical conduct by Zhongshan Fucheng.
Amosun, who governed Ogun between 2011 and 2019, explained in a statement that his government acted due to a dispute between two Chinese firms – Zhongfu International Investment FXE and China Africa Investment FXE, over control of the state’s free trade zone, over time, worsened and threatened public peace and safety within the zone and neighbouring communities.
“Zhongfu International Investment FXE, pretending to be a concerned and genuine tenant and zone stakeholder, volunteered very damaging and destructive information about the official representatives of Guangdong Province, the Joint Venturer and lawful Zone Managers, China Africa Investment FXE and subsequently requested to be appointed as Interim Zone Managers,” Amosun said.
“Based on the information at the disposal of the Government at the time, Zhongfu International Investment FXE was on 15/03/2012 appointed as Interim Zone Manager pending further evaluation. The whole idea was to ensure that someone was in charge and thereby prevent unwholesome and untoward development in the zone pending the completion of our fact-finding exercise,” he stated.
According to the former governor, the Chinese government, through its Diplomatic Note 1601 dated 11 March 2016, clarified to the Ogun State Government that China Africa Investment FXE was the rightful investor.
The Ogun government served Zhongfu International with a formal termination notice dated 27 May 2016.
This newspaper is unimpressed and offended by the tongue-in-cheek rationalization of this elementary failure by the former governor, who had been a senator before becoming governor. We frown at the penchant of our governments to enter into agreements and MOUs without proper due diligence and professional oversight. The most recent of this negligence is the Samoa Agreement, which contained clandestine and sinister provisions. Also, every agreement usually contains dispute resolution clauses, which parties are obligated to pursue in the event of any default.
Again, the idea of state governments rushing abroad for all manner of loans and contracts, which the federal government would statutorily guarantee demands stricter due diligence and oversight since the country’s reputation is at stake.
At present, there are over 5000 MOUs signed by the different governments with little development to show for them. Also, given the unfolding magnitude of this problem, the nation now needs an attorney general and minister of justice, who has adequate knowledge and understanding of international business and trade laws to ensure that outstanding and future obligations are properly vetted and followed to stem this ugly trend, because after P&ID, we thought it marked the end of such disreputable news about the country. Again, it points to the country’s legendary problem of policy inconsistency, which was introduced by the military, where one regime quickly abandoned the policies of it’s predecessors. We argue that government is a continuum, and it is solution to prevent this kind of unnecessary controversies. But contract award is a major avenue for corruption in government, therefore, each government must award its own contracts.
On the whole, it is obvious that Nigeria has become a very weak state, which everyone, big and small, takes on at will without serious consequences. We call on the President to get to the root of the matter and ensure that those involved by any act of omission or commission are made to answer for their deeds.
