I was also victim of Amosun's arbitrary contract violation - Pat Utomi

Pat Utomi, a professor of political economy, has disclosed that he was also a victim of arbitrary breach of contract by the Ogun State government under Ibikunle Amosun, who was governor between 2011 and 2019.

Utomi was reacting to the recent seizure of three Nigerian presidential jets by a Chinese company, Zhongshan Fucheng Industrial Investment Co Limited, which obtained a court order from a French court.

The firm got the order from the court in Paris to seize three of Nigeria’s presidential jets after the Ogun State Government allegedly breached a business contract in 2016.

Sharing his own experience with the Amosun government via his X account, @UtomiPat, Utomi wrote, "So it was Gov Amosun’s violation of contract terms signed by his predecessor that brought the shame of seizure of jets from the Presidential fleet. I hope he is happy at his achievement’. The whole matter is Khama at work. 

"The Chinese were not the only victims. One prominent Ogun indigene allegedly committed suicide with similar Amosun action. I too was a victim. I had leased OPIC land in Lagos in a BOT agreement under Gov Daniel. Amosun stopped all such on being sworn in. I called him. He said he did not see my name on the list. I went to Abeokuta and he called in Yewandw Amusan who said mine was a straight forward deal they did not include it. 

"He asked that all be included but mine be quickly sorted. That began a rigmarole that went on for years. I made another trip to Abeokuta. He drove me back to Lagos at the wheels with my driver trailing along with the escorts and sirens. He had earlier asked that I make a request for refund of what I paid even though my South African partners and I had invested 200m  in addition to the lease amount at the time. With just two of us in the car he advised I make a claim for100m and write for additional payments the day after I cash the cheque. It was surreal but if I got nothing more it would be better than being in court until we both retire.

" I took the case to APC leader BAT and Baba Akande. No result. Took it to Dapo Abiodun when he took over. Nothing came of it. If this happened to Frieda I wondered what enemies were going through.I lost my weary SA partners who owned a successful regional chain across Southern Africa and Asia. I licked my wounds and Slaved to pay off the loans. The Chinese had better leverage. They took it and all are shamed. 

"My new book Power Policy Politics and Performance documents a similar case study in Enugu involving SA investors as the gubernatorial batons changed hands. When shall we learn. Values shape human progress

Meanwhile, Amosun had in a statement on Saturday, claimed that his government acted due to a dispute between two Chinese firms over control of the state’s free trade zone.

In his first reaction since the scandal broke, Mr Amosun said his government intervened due to the dispute between Zhongfu International Investment FXE and another Chinese firm, China Africa Investment FXE.

In a statement, titled, ‘Presidential Jets Seizure: Zhongfu Firm Is An Impostor…,’ Mr Amosun explained that when he assumed office in 2011, the two Chinese companies laid claims to management rights over the Ogun Guangdong Free Trade Zone (OGFTZ).

He said the rivalry between the companies soon worsened and threatened public peace and safety within the zone and neighbouring communities.

“There were claims and counter claims as to who between the two was the lawful representative of the original joint venturer, Guangdong Province, China and consequentially who had the right to manage the Zone,” he said.

According to the former governor, Zhongfu International was appointed as Interim Zone Managers based on damaging information it gave about China Africa Investment FXE.

“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.

“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.

Mr Amosun said his government later discovered “that the information and claims by Zhongfu International Investment FXE against China Africa Investment FXE were tissues of lies.”

“Unknown to Ogun Government at the time, Zhongfu International Investment FXE merely sought to de-market China Africa Investment FXE and to surreptitiously covert the state-owned assets of Guangdong Province in China together with the zone ownership and management rights of their business rival,” he added.

He said 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.

He added that after due consultation with the State Security Services and the supervising agency, NEPZA, the Ogun government served Zhongfu International with a formal termination notice dated 27 May 2016.

The former governor said the termination of Zhongfu International’s contract as the Interim Zone Managers of the Ogun Guangdong Free Trade Zone (OGFTZ) led to a series of litigations and petitions.

“We successfully defended our actions at all levels before these organs of government, and they all agreed with our position. Shortly after, our administration left office in May 2019,” Amosun stated.

He urged the federal government not to give in to the demands of Zhongfu International, adding that “it is concerning that a purely business dispute between two Chinese nationals and corporations have now degenerated into an unlawful attempt to appropriate Nigeria’s sovereign assets.”

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