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Chinese Businessman Wins Right to Confiscate Two Nigerian Govt Property in UK

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Two Nigerian properties located in the United Kingdom are on the verge of being taken over by a Chinese investor following an order granting the investor the right to enforce a $70 million investment treaty award against Nigeria.

The investor – Zhongshan Fucheng Industrial Investment – was granted final charging orders over two UK residential properties owned by the Nigerian government after the company also attached a £20 million debt relating to the high-profile P&ID case.

Reports said the Chinese firm secured the order on June 14 when Master Sullivan in the Commercial Court in London granted the orders in respect of two Liverpool properties estimated to be worth a combined £1.7 million.

According to the judge, the order was premised on the fact that the properties have been converted to commercial use outside Nigeria’s diplomatic or consular activities in the UK, stressing that enforcement of the order should prevail.

The case was a gritty legal battle between Zhongshan, represented before the court by Withers and barristers at 3VB, while Nigeria was represented by Squire Patton Boggs and a barrister at Atkin Chambers.

Reports said the underlying arbitration was in relation to a joint venture with Nigeria’s Ogun State to establish a free trade zone near Lagos in 2013. A Zhongshan subsidiary held a 60% stake in the project but Ogun terminated its participation three years later.

In 2021, a London-seated UNCITRAL tribunal chaired by Lord Neuberger including Matthew Gearing KC and Rotimi Oguneso (SAN) said Nigeria was guilty of expropriation and other breaches of the China-Nigeria bilateral investment treaty and ordered the country to to pay US$55.6 million plus interest and costs.

Nigeria in the same year put a challenge against the award in the Commercial Court on jurisdictional grounds. Nigeria’s position was that the arbitration clause in the BIT was invalid. But in later development, Nigeria withdrew the challenge before a hearing on Zhongshan’s application for security and security for costs was about to take place.

Mrs. Justice Cockerill in the same court granted Zhongshan an ex parte enforcement order in December 2021, but Nigeria did not file against this order within the 74-day deadline allowed by the law.
In July 2023, the Court of Appeal in London stopped Nigeria from bringing a late challenge to the enforcement order, stressing Cockerill’s provisional determination that state immunity did not apply had become final.

The investor reportedly got interim charging orders in June and August last year over the two properties in Liverpool, which are owned by the Nigerian government.
Nigeria’s efforts to dismiss these charging orders failed as Master Sullivan in her judgment, held that the properties are leased to residential tenants and that no “consular activities are actually taking place on the premises”.

She also dismissed Nigeria’s arguments that it had not been properly served with the interim charging order applications under the State Immunity Act and that Zhongshan had failed to give full and frank disclosure when seeking them.

Master Sullivan also dismissed Nigeria’s objection about parties bringing multiple enforcement action, saying that parties are “entitled to bring as many types of enforcement action as they see fit to recover their debt.” She noted that Nigeria had yet to pay any of the award and that the value of the properties represented a “small proportion of it”.

Timi Balogun of Squire Patton Boggs, counsel to Nigeria, said: “We respectfully disagree with the Master’s decision, which we believe somewhat brushes over complex public international law issues, including with respect to state immunity and the right of a foreign state’s High Commission to own and manage portfolios of fixed assets in England and Wales. We believe that such issues need to be weighed very carefully, and we intend to appeal this decision so that these complex and important issues can be considered by the higher courts.”

Zhongshan applied to enforce the award in Washington, DC in 2022. Last year, the DC district court rejected Nigeria’s motion to dismiss the action on sovereign immunity grounds. The state argued the China-Nigeria BIT was “quintessentially sovereign” and therefore the award did not arise from a commercial relationship between the parties. The DC district proceeding is stayed pending Nigeria’s appeal of the sovereign immunity decision.

Zhongshan has also taken enforcement measures in various other jurisdictions, including in Quebec, where it seeks conservatory seizure of a private jet; and in Belgium, where Nigeria is challenging attachments of properties.

In the British Virgin Islands, Zhongshan has obtained an interim attachment over a £20 million liability owed Nigeria by BVI-registered company Process & Industrial Development (P&ID) under an English Commercial Court ruling. The Chinese company withdrew an earlier application to attach the same liability in England.

The Commercial Court ordered P&ID to pay Nigeria £20 million in costs in December last year after upholding the state’s challenge to an US$11 billion award in favour of the company. Mr Justice Robin Knowles found the award was procured through false evidence, corrupt payments and improper retention of leaked documents.

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Alleged Coup: Court Orders DSS to Probe VDM over Leaked Trial Video

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The Federal High Court in Abuja, on Tuesday, ordered an investigation into an alleged leaked video which has stirred controversy in the trial of five suspects charged with being part of last year’s failed plot to topple President Bola Tinubu’s administration.

Judge Joyce Abdulmalik made the order following claims by prosecution lawyer Rotimi Oyedepo (SAN), who is the Director of Public Prosecution (DPP), that the video recording of one of the defendant’s statements had appeared on social media, contrary to an earlier court order.

He said he watched the video on the page of social media influencer Martins Vincent Otse, popularly known as VeryDarkMan (VDM).

He described the development as a national security issue. “We tendered the video recording and served it on the defence. I know I served my colleagues,” he said.

Continuing, Oyedepo argued that the development was extremely prejudicial and disturbing. He noted that the social media post had attracted more than 6,000 views.

He argued that since there is a law protecting witnesses, the court should direct an investigation into the matter.

“What I saw yesterday is quite disturbing. I urge your lordship to investigate this video and confirm whether it is the same video before the court and whether it contravenes your lordship’s order,” he said.

He also informed the court that VDM was present in court to perhaps tell the court how he got the video.

Reacting to the claim, all the defence lawyers took turns to deny knowledge of how the video leaked into the social media space.

“Our worry is that this is coming at the stage when we are trying to move our bail application. I am not even a social media person. I am not opposed to an investigation,” the lawyer to the first defendant, Muhammed Ndayako, a SAN, said.

Apart from their denial, some of the defence lawyers, including that of the fourth defendant, C.D. Okafor, urged the court to investigate members of the media who have been covering the proceedings.

While not opposing the probe, the fifth defendant, M.A Ibrahim, expressed doubts about the prospect of such investigation. The lawyer to the sixth defendant, Sanusi Musa (SAN), objected to any investigation.

“I am surprised that the DPP said the court should investigate this matter. Secondly, who are the suspects? The video might have been leaked from the court, it might be me, it might even be the DPP or from the Ministry of Justice.”

“Whatever the DPP said here cannot be acted upon without evidence. If he wants that, he should file an application. The EFCC also has a media department.

“My lord, while I thank God that I am not the one, I object to the suggestion that the matter be investigated,” he said.

Ruling on the issue, who the judge did not acknowledge that Very Dark Man was in court, affirmed the court’s power to direct the protection of witnesses.

She noted that Section 232(5) of the Administration of Criminal Justice Act 2015 provides for the protection of vulnerable witnesses and prescribes consequences for any breach of witness protection measures or court orders made under that section.

Subsequently, Abdulmalik ordered the SSS to investigate any evidence on social media that may have “contravened the court’s earlier orders and bring any culprit before the court.”

She added that if such suspects are brought, the matter will be a “distinct case” while the current matter continues separately.

The six defendants charged in the case include a retired major general, Mohammed Ibrahim Gana, and a retired navy captain, Erasmus Ochegobia Victor.

The rest are Ahmed Ibrahim, a police inspector; and Zekeri Umoru, an electrician at the Presidential Villa; Bukar Kashim Goni and Abdulkadir Sani, a Zaria-based Islamic cleric.

They were accused of being part of a conspiracy to topple President Tinubu’s government. Information about the alleged secret plot was leaked to the authorities last September, leading to the arrest of serving and retired military officers alongside their alleged civilian conspirators.

The six men charged before the Federal High Court in Abuja face 13 counts of treason, terrorism, failure to disclose information, and money laundering over the alleged failed coup.

Since the trial began, the prosecution has called four witnesses.

The fourth prosecution witness, an army officer identified by the codename AAA for security reasons, has yet to be discharged. The prosecution witness brought video recordings of the defendants’ interrogations to court as exhibits.

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Senate Passes Bill Establishing State Police in Nigeria

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The Senate has passed a bill to establish State Police in Nigeria.

According to reports, the bill was passed on Wednesday by the lawmakers following a clause-by-clause consideration of the provisions of the bill.

The Senate plenary was presided over by Senate President Godswill Akpabio.

The Senate adopted manual voting for the consideration of the State Police Bill after the electronic voting device developed technical issues during plenary on Wednesday.

The decision followed concerns that some lawmakers could be disenfranchised if the chamber proceeded with the faulty device.

Under the manual voting arrangement, each senator had to stand up, announce his or her name, and openly state his or her position on the proposed bill for establishing State Police.

President Bola Tinubu had earlier transmitted a Constitution Amendment Bill seeking the establishment of State Police to the Senate as part of efforts to strengthen the country’s security architecture.

The legislation seeks to amend relevant provisions of the 1999 Constitution to create a legal framework for the establishment of state police across the federation.

The move follows repeated calls by the President for constitutional reforms that would enable states to play a more active role in securing their territories.

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Senate Amends Own Rules, Blocks ‘Freshers’ from Leadership Positions

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The Senate has amended its Standing Orders, limiting eligibility to contest for its presiding officers and principal officers to only members of the 10th Senate.

In the new rules, a senator shall only qualify to contest for Senate Presidency and Deputy Senate Presidency if he/she has won election to the Senate for at least one term of four years.

To be eligible to contest for any principal office, a senator must have won election for two consecutive periods, the last one must immediately precede the inauguration of the next Senate.

By implication, any senator who plans to vie to become a presiding officer in the 11th Senate (2027-20231) must have been a senator for at least one term preceding the inauguration.

For principal offices (chief whip, deputy whip, minority whip, etc), the senator must have been a member of the current 10th Senate, or they are not eligible to contest.

Under the new provision on “qualification of presiding officers”, it is stated in Order 3,”A Senator vying for the Office of the President of the Senate and the Deputy President of the Senate must have served at least one term of four (4) years in the Senate as a senator of the Federal Republic.”

Similarly, nomination for the positions shall strictly follow ranking in the following order: former president of the Senate; former deputy president of the Senate; former principal officers of the Senate; senators who had served for at least one term of four (4) years; and senators who had been members of the House of Representatives.

According to the provision, it is only the absence of the above that a first-term senator can be nominated to contest for the positions of presiding officers.

Under Order 5, a senator seeking to be a principal officer must have “served as a senator for at least two consecutive terms immediately preceding such nomination. “

The Senate passed the rules after a lengthy executive session presided over by the President of the Senate, Godswill Akpabio, on Tuesday.

The new rules impliedly gives Akpabio, other former presiding officers, principal officers and ranked senators the right of first refusal.

Findings indicated that the new rules might be what some sources described as “self-serving” or designed to serve the interest of the present presiding officers and members of the 10th Senate.

For instance, some State governors contesting the 2027 election to the Senate in the hope of vying for the presidency of the Senate, are effectively barred by the new rules.

It was also learnt that even within the Senate, the new rules will stop some senators from vying to become principal officers as they would not have attained two consecutive terms prior to 2027.

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