Treaty violation: Court gives Chinese firm go-ahead to seize Nigeria's properties in UK

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A commercial court in London has granted Zhongshan Fucheng Industrial Investment Co. Ltd, a Chinese company, final charging orders over two

Lisa Sullivan, a master at the court, granted the final charging orders to the Chinese firm following Nigeria’s prior opposition to the orders’ jurisdiction.In 2010, Zhongshan, through Zhuhai Zhongfu Industrial Group Co. Ltd , its Chinese parent company, acquired rights to develop a free trade zone in Ogun state.

The arbitrators had ruled that Nigeria was in breach of its obligations under the China-Nigeria BIT and awarded Zhongshan compensation of around $70 million.Nigeria pleaded state immunity but was turned away by Sara Cockerill, a high court judge, who said the country abused the time frame for appealing arbitral awards.The Chinese company obtained interim charging orders in June and August last year over the two properties in Liverpool, owned by the Nigerian government.

She cited evidence regarding the “dilapidated” state of one property, including “large electrical home appliances strewn across the front lawn”.Sullivan said they had not been used for diplomatic reasons for the previous 34 years, based on the balance of probabilities.

 

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