Ogun Ex Governor Exposes Zhongfu International as Impostor in Controversial Free Trade Zone Dispute

Ibikunle Amosun, the former governor of Ogun State, has openly criticised the Chinese firm, Zhongfu International Investment FXE, labelling the company as an impostor in a contentious dispute over the Ogun Guangdong Free Trade Zone (OGFTZ).

Amosun’s remarks shed light on a complex business rivalry that nearly disrupted the economic activities within the zone and posed a threat to public safety.

In a statement made available to Journalists, Amosun recounted his administration’s experience dealing with the conflicting claims of two Chinese companies—Messrs China Africa Investment FXE and Zhongfu International Investment FXE—over the management rights of OGFTZ.

Upon assuming office in 2011, the former governor discovered that both companies were vying for control, leading to a fierce business dispute that hindered operations within the Free Trade Zone and created tension in the surrounding communities.

Amosun revealed that the conflict was ultimately resolved in 2016 with the intervention of the Chinese government, which, through Diplomatic Note 1601, affirmed that China Africa Investment FXE was the legitimate investor and rightful manager of the zone.

This intervention was a critical turning point in a dispute that had seen Zhongfu International aggressively attempting to undermine its rival by spreading false information and attempting to assume control of the zone under the guise of being a concerned stakeholder.

“Our administration came into office on 29 May 2011, and it wasn’t long before we encountered a serious issue: two Chinese companies, China Africa Investment FXE and Zhongfu International Investment FXE, were both laying claim to management rights over the Ogun Guangdong Free Trade Zone,” Amosun stated.

“The ensuing rivalry became intense, disrupting business activities and threatening public peace in the area.”

Amosun explained that initially, the Ogun State Government had appointed Zhongfu International as the interim manager of the zone on 15 March 2012, following the company’s claims and the damaging information it provided about China Africa Investment FXE.

The decision was made to maintain order while the government conducted a thorough investigation into the matter.

However, it later became evident that Zhongfu International’s allegations were baseless and served only to discredit China Africa Investment FXE, with the ultimate goal of seizing control of state-owned assets belonging to Guangdong Province.

“The information provided by Zhongfu International was later found to be entirely false.

Their intention was not to contribute positively to the zone, but rather to discredit China Africa Investment FXE and covertly take over the state-owned assets of Guangdong Province, along with the management rights to the zone,” Amosun continued.

The situation was finally clarified when the Government of the People’s Republic of China, through a diplomatic communication dated 11 March 2016, confirmed that China Africa Investment FXE was the rightful investor.

The Ogun State Government, after consulting with relevant governmental bodies, honoured this clarification and took appropriate action by formally terminating Zhongfu International’s interim management role on 27 May 2016.

Amosun noted that Zhongfu International subsequently pursued legal action in multiple courts across Nigeria, but their claims were consistently dismissed.

“Zhongfu International sought legal redress in various courts but failed in all their attempts.

Despite losing four cases, they continued to petition higher authorities in Abuja, including the Presidency, the Ministry of Trade and Investment, the Attorney General, and other governmental agencies,” Amosun remarked.

He added that his administration successfully defended its actions at all levels, with these agencies siding with the state’s position.

The former governor also clarified that his administration never employed security personnel to intimidate or harm anyone during the dispute, dismissing any such reports as fabrications by the contending parties.

Instead, Amosun expressed his readiness to cooperate with government agencies to protect Nigeria’s interests and prevent any fraudulent activities by Zhongfu International or similar entities.

Amosun’s statement offers a comprehensive account of the intricate dispute between China Africa Investment FXE and Zhongfu International, highlighting the challenges of managing international investments and the critical role of government intervention in resolving such conflicts.

His narrative underscores the importance of vigilance and due diligence in safeguarding state assets and maintaining order in free trade zones, which are vital for economic development.