A fresh strategy in the Chinese weird
business model in Nigeria aimed principaly at sabotaging the nation’s economy
has been uncovered in Lagos. The latest drive has been described by multiple
sources in business and security circles, as a direct assault on the nation’s
economy and security.
The
latest culprit, Zhe Long, owned by two Chinese: Wang Fuzeng and Chen Yuping,
has as its main objective: “to carry on business as manufacturer, buyers,
sellers, traders, importers, exporters and merchant exporters.”
The company, according to search at
the Corporate Affairs Commission, was incorporated in Nigeria on the 11th
January, 2018 with an official address at 4, Eric Moore road, Surulere, Lagos.
Investigation revealed that the
perfidy from Zhe Long ranges from false declaration, security breaches, tax
evasion, forgery, illegal immigration, concealment and customs duty evasion.
For instance, security agencies have
discovered that the commercial that sales invoices of the company is not VAT
compliance since there are no VAT number and amount declared on the document.
This to tax experts, constitutes a serious breach of the law by Zhe Long and
its customers.
Apart from this, investigation also
revealed that there are about 30 Chinese semi-skilled/manual workers operating
in the company. A source in the company revealed that none of these workers has
a formal Combined Expatriate Residence Permit and Aliens Card, CERPAC
documentation, which is clear breach of the nation’s immigration law by both
company and the illegal immigrants.
The CERPAC GREEN
CARD is a bonafide document that allows a non-Nigerian to reside in Nigeria and
carry out an approved activity as specified in the permit, or to accompany a
resident or citizen of Nigeria as a dependant.
In the areas of import and shipping
documentations, sources revealed that Zhe has been falsely declaring a chemical
known as Polyol as Polyacetals. Polyols are a group of
low-digestible carbohydrates derived from the hydrogenation of their sugar or
syrup.
Polyols react with isocyanates to
make polyurethanes, which
find use to make mattresses, foam insulation for refrigerators and freezers,
home and automotive seats, elastomeric shoe
soles, fibers (e.g. Spandex),
and adhesives.
On the other hand, polyacetal is an
engineering thermoplastic used in precision parts requiring high stiffness, low
friction, and excellent dimensional stability. It is among plastic materials, with
the most crystalline structure.
It is also is known for its good fatigue/creep resistance, low friction and
good performance in cold temperature.
Sources at the Customs explained that
the reason for this false declaration is that Polyacetals global pricing is
US$600/metric tonnes as against US$2,000 Polyol.
Similar to the above, the company is
also accused of declaring a chemical called TDI as Toluene. Global pricing of
Toluene is US$600 as against TDI’s US$2,300
The consequence of this false
declaration according to experts, is duty under-payment and the consequent
defrauding of the government of necessary duty and VAT on these transactions.
Aside the loss of revenue accruing to
the government, there is major security implication for the false declaration
of TDI. Apart from a chemical used in the production
of polyurethanes, primarily for flexible foam applications including furniture, bedding and carpet
underlay, as well as packaging applications, TDI is also used in
the manufacture of coatings, sealants, adhesives and elastomers.
But due to TDI’s potential explosive
properties, the material is a controlled substance that requires an End User
Certificate, EUC issued by the office of the National Security Adviser, NSA for
its importation to Nigeria.
Sources close to the company alleged
that presently there is no evidence to support that Zhe Long has EUC for its
TDI’s importation, which according to security experts, constitute a serious
national security breach.
In Nigeria, as in much of Africa,
Chinese investment provokes suspicion. But according to Mr Ye Shuijin,
President, China Chambers of Commerce in Nigeria, the quantum of investment in
the Nigerian economy by Chinese companies has hit $20 billion U.S dollars. This I from160 Chinese firms operating in the
country which also employed over 200,000 Nigerians.
There is also a large population of Chinese people in Nigeria which comprise Chinese expatriates and descendants
born in Nigeria with Chinese ancestry. As at 2012,
there are approximately 20,000 Chinese in Nigeria.
Like many Nigerians, John Bolton,
President Donald Trump’s national security adviser, has accused China of using
“bribes, opaque agreements and the strategic use of debt to hold states in
Africa captive to Beijing’s wishes and demands.”
The Chinese however countered that “Nigeria
has the most thieves in the world,” says Thomas Liu, who runs the medicine
company, using the sort of uncompromising language that grates from Accra to
Kinshasa. “You have to avoid being tricked.”
Chinese businessmen also claimed they
have to negotiate past Nigeria’s bureaucratic gatekeepers for permits and
licences. “To visit a government official here, you best have around $6,000 to $10,000
with you,” says Mr Ban, a miner. “Otherwise, forget about getting an
appointment.”
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