Daniel distances self from ongoing legal battle with Chinese firm

The former governor of Ogun State, Otunba Gbenga Daniel, has distanced himself from the ongoing legal disputes between a Chinese firm and the Nigerian government over the Ogun/Guangdong Free Trade Zone (FTZ).

Recall that three aircraft belonging to the Nigerian presidential fleet have been seized in France and Switzerland following a court order. The seizure was initiated by Zhongshan, a Chinese company embroiled in a long-standing legal dispute with Ogun State over the management of an export processing zone.

The seized jets include a Dassault Falcon 7X in Paris, a Boeing 737, and an Airbus A330 valued at over $100 million that was yet to be delivered. The latter two are currently undergoing maintenance in Switzerland. Zhongshan was awarded $74.5 million in damages after a court ruled in its favour over the contract termination by Ogun State. The seizure of the presidential jets is part of the company’s efforts to recover this amount.

In a statement released by his media office, Daniel, who conceived the idea of the free trade zone during his tenure, clarified that neither he nor his administration is directly involved in the ongoing arbitration and legal proceedings concerning the termination of a management contract for the FTZ.

He emphasised that the current legal matters do not pertain to the foundational agreements for establishing the FTZ but rather focus on the termination of a specific management contract. He highlighted that all relevant court judgments have clearly addressed the issue.

His words: “We need to establish clearly that Otunba Gbenga Daniel or his administration is not in discussion on the matter before the courts and arbitration. Neither were the terms or propriety of the Agreement for the establishment of the FTZ, rather it is the termination of a Management Contract. The judgments in all the courts are very clear on this.”

“It is also important to note that this is a very sensitive matter involving our collective National Assets and Commonwealth, which every patriotic Nigerian should feel concerned about. As a patriotic elder statesman who has had the privilege of serving Ogun State as the Governor, through which he was able to bring about several developmental projects including the establishment of the Ogun/Guangdong Free Trade Zone and others, and through which he has impacted the lives of many citizens, also as a serving Senator of the Federal Republic of Nigeria, it is this patriotic path he chooses to tread.”

The senator also reassured the public that the Ogun/Guangdong Free Trade Zone continues to operate, with multiple companies still conducting business within the zone.

He highlighted the developmental strides achieved in the Igbesa area, where the FTZ is located, during his tenure as governor, which included infrastructure development and educational support for the local community.

He therefore called for accurate reporting and urged the media to support the government in resolving the dispute in the best interest of Nigeria.