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South Korea Parliament Votes to Impeach President Park Geun-hye

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  • South Korea Parliament Votes to Impeach President Park Geun-hye

SEOUL, South Korea — South Korea’s Parliament voted on Friday to impeach President Park Geun-hye, an aloof conservative who took a hard line against North Korea and rose to power with strong support from those who revered her father, the military dictator Park Chung-hee.

The vote against Ms. Park, the nation’s first female leader, followed weeks of damaging disclosures in a corruption scandal that has all but paralyzed the government and produced the largest street protests in the nation’s history. Her powers will now be suspended as the Constitutional Court considers whether to remove her from office.

Ms. Park has been accused of allowing a shadowy confidante, the daughter of a religious sect leader, to exercise remarkable influence on matters ranging from choosing top government officials to her wardrobe, and of helping her extort tens of millions of dollars from South Korean companies. The scandal, which gained national attention less than two months ago, has cast a harsh light on collusion between the presidency and big business in one of Asia’s most dynamic economies.

A total of 234 lawmakers voted for impeachment, well over the required two-thirds threshold in the 300-seat Parliament. The vote was by secret ballot, but the outcome indicated that nearly half of the 128 lawmakers in Ms. Park’s party, Saenuri, had joined the opposition in moving to oust her.

Parliament’s motion for impeachment, accusing Ms. Park of “extensive and serious violations of the Constitution and the law,” will now be taken up by the Constitutional Court, which has six months to decide whether the charges are true and merit her ouster.

Prime Minister Hwang Kyo-ahn, a former prosecutor and staunch defender of Ms. Park, will serve as acting president in the meantime. If the court votes to remove Ms. Park, South Korea will hold an election for a new president in 60 days.

The political turmoil ushers in a period of uncertainty as South Korea faces a slowing economy, a growing nuclear threat from North Korea and a more assertive China. Ms. Park had adopted a tough stance toward the North, focusing on stronger sanctions, and had agreed to deploy an American advanced missile defense system that infuriated the Chinese.

Her unpopularity increases the chances of a liberal candidate winning the next election, possibly upending her North Korea approach and steering the country closer to China.

Domestically, her undoing provides the latest example of how corruption and influence-peddling remain entrenched at the top echelons of political and corporate life in South Korea.

The nexus of industry and political power has fueled South Korea’s transformation from a war-torn agrarian country into a global economic powerhouse, yet the ties between government and business have yielded recurring corruption scandals.

Ms. Park, 64, came to power in early 2013, backed mostly by older Koreans who had hoped she would be a contemporary version of her father, often viewed as the modernizer of South Korea.

Instead, she became the least popular leader since the country began democratizing in the late 1980s, according to recent polls. Critics said she was authoritarian and used state power to muzzle critics while shielded by a coterie of advisers.

The vote for impeachment in the National Assembly, South Korea’s Parliament, was a victory both for the opposition and the huge crowds of South Koreans who filled central Seoul for the past six weekends demanding that she resign immediately or face impeachment. Recent surveys showed that a vast majority of South Koreans agreed with the demonstrators.

“It is a victory of the people’s will and Korea’s democracy,” said Kang Won-taek, a professor of political science at Seoul National University. “It is Korea’s glorious revolution, achieved without blood and without any serious violence.”

The last time South Koreans took to the streets to kick out an unpopular leader, in 1960, they had to fight bloody battles with police officers armed with rifles.

That uprising forced Syngman Rhee, the country’s founding and authoritarian president, to resign and flee into exile in Hawaii. Vice President Lee Ki-poong, a Rhee confidant who was at the center of a corruption scandal, and his family ended their lives in a group suicide as mobs approached their home in Seoul.

In subsequent decades, when South Koreans demanded more democracy, their military dictators, including Ms. Park’s father, brutally suppressed them through martial law, torturing and even executing their leaders.

In 1987, violence erupted again as people took to the streets to demand free presidential elections, forcing the military government to back down.

This time, in a sign of how far South Korea’s democracy has matured, peaceful crowds achieved their goal without a single arrest. Increasingly large numbers of protesters gathered in the capital, including about 1.7 million people on Saturday — the largest protest in South Korean history.

The protesters sang and danced to rock music and put flower stickers on police buses. They marched, some pushing baby carriages, while uniformed officers stood aside. And they neared Ms. Park’s presidential compound, chanting that she should step down immediately or face impeachment.

Ms. Park became the first South Korean president to suffer such a fate since 2004, when the National Assembly moved to impeach Roh Moo-hyun for violating election law. Two months later, the Constitutional Court ruled that Mr. Roh’s offense was too minor to justify impeachment and restored him to office. But Ms. Park faces much more serious accusations.

Still, it is difficult to predict when and how the Constitutional Court will rule on Ms. Park’s fate. The process will buy time for Ms. Park’s embattled party to recover from the scandal and prepare for the next presidential election if the court decides to formally unseat her.

If a liberal candidate wins the next election, the plan for the American missile deployment could be in trouble. Although none of the politicians cited as potential presidential candidates has specified that they would reverse the plan if elected, liberals have criticized the deployment, saying that South Korea should pursue a more balanced diplomacy between Washington and Beijing.

That may present a challenge for the incoming administration of Donald J. Trump, as he deliberates over whether to adjust Washington’s approach toward North Korea’s advancing nuclear-missile program.

Ms. Park joins the ranks of South Korean leaders who have been disgraced near the end of their terms, with their relatives or aides implicated in corruption scandals. An exception was Ms. Park’s father, who was assassinated in 1979 at the height of his dictatorial power and before anyone dared to bring corruption charges against him.

His and subsequent governments had favored a handful of family-owned conglomerates with tax benefits, lucrative business licenses and buy-Korea and anti-labor policies. In return, the businesses were accused of returning the favors with bribes and suspicious donations.

Through the years, top corporations have been rocked by recurring corruption scandals, including the one that implicated Ms. Park and her confidante, Choi Soon-sil.

In 1988, business tycoons were hauled into a parliamentary hearing to be questioned about millions of dollars they gave to a foundation controlled by the military dictator Chun Doo-hwan.

The scene repeated this week, when nine business leaders, including Jay Y. Lee, the vice chairman of Samsung, and Chung Mong-koo, the Hyundai chairman, appeared at another parliamentary hearing to be questioned about millions of dollars they gave to two foundations controlled by Ms. Choi.

Ms. Choi has been indicted on charges of leveraging her influence with Ms. Park to extort the money from the businesses. Prosecutors have also identified Ms. Park as a criminal suspect, a first for a president, though she cannot be indicted while in office.

The businessmen admitted giving the money, confirming that the requests had come directly from Ms. Park or her aides.

Hur Chang-soo, chairman of GS Group and the head of the Federation of Korean Industries, the pro-business lobby group that coordinated the donations, put the situation this way: “It is difficult for businesses to say no to a request from the government. That’s the reality in South Korea.”

NY Times

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Ghana Ordered to Pay $111.5M to Power Company After U.S. Court Ruling

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The government of Ghana has been ordered to pay $111.5 million to Ghana Power Generation Company (GPGC) following a ruling by a District of Columbia Court in the United States.

This ruling was granted in favor of GPGC after Ghana failed to respond to an earlier tribunal ruling from the United Kingdom, which found the country in breach of a power purchase agreement.

The court’s decision comes after Ghana terminated its contract with GPGC on February 18, 2018. The UK tribunal, in its final award dated January 26, 2021, found that Ghana had violated its contractual obligations, resulting in significant financial damages for GPGC.

The tribunal initially awarded GPGC $134.3 million in damages, calculated using the Early Termination Payment formula as specified in the purchase agreement.

Ghana, however, did not comply with the tribunal’s verdict, prompting GPGC to pursue the matter in U.S. courts. On January 19, 2024, GPGC filed a lawsuit in the District of Columbia, citing the Federal Arbitration Act and the New York Convention, which provides for the recognition of international arbitration awards.

Court documents reveal that the petition was formally delivered to Ghana’s Ministry of Foreign Affairs and Regional Integration on January 23, 2024.

Despite receiving the legal documents, Ghana failed to respond to the court proceedings by the March 29, 2024, deadline. This non-response led the U.S. court to grant a default judgment in favor of GPGC.

Chief Judge James E. Boasberg emphasized that the arbitral judgment fell under the New York Convention, which requires member states, including the United States, to recognize and enforce international arbitration awards.

He further noted that Ghana had voluntarily submitted to international arbitration when entering the power purchase agreement, waiving its sovereign immunity in the process.

Although GPGC was not awarded pre-judgment interest, Ghana will be obligated to pay post-judgment interest at rates set by U.S. law.

This adds an additional financial burden to the $111.5 million judgment as the payment accrues further interest over time.

The country narrowly avoided a separate $11 billion arbitration award in the infamous P&ID case, which was eventually overturned due to findings of corruption and bribery.

However, in the GPGC case, multiple European courts have upheld enforcement orders, leaving Ghana with limited legal recourse.

The court’s decision is expected to place added pressure on Ghana as it faces mounting financial obligations related to international arbitration disputes.

GPGC has indicated that it will pursue all available legal avenues to ensure full recovery of the damages awarded by the tribunal, including possible enforcement actions in other jurisdictions.

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Zhongshang Fucheng Moves to Auction Nigerian Properties in UK Following $70M Arbitration Award

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Bola Tinubu

Zhongshang Fucheng Industrial Investment Ltd has escalated its efforts to collect a $70 million arbitration award from Nigeria by putting two residential properties in Liverpool up for sale.

This significant development follows a 2021 arbitration verdict against Nigeria, which remains unsettled.

The Chinese investment group has reportedly listed two buildings linked to the Nigerian government—15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road—on the global online marketplace eBay.

The move is part of a broader strategy to recover the outstanding $70 million, which includes a principal amount of $55,675,000, plus interest and legal costs, as stipulated by the arbitration verdict.

The arbitration stemmed from a dispute between Zhongshang Fucheng and Ogun State over a trade treaty violation.

The company claimed that Ogun State rescinded its rights to a free trade zone in 2016, prompting a legal battle that saw Zhongshang’s executives expelled from Nigeria.

The British court granted Zhongshang the authority to seize Nigerian assets in the UK after the Nigerian government failed to settle the arbitration judgment.

The seizure and subsequent auction of these properties mark a pivotal moment in the ongoing legal conflict.

The properties were confiscated because they were not classified as diplomatic or consular assets, making them subject to seizure under the court’s orders.

According to sources familiar with the situation, the properties are valued at approximately $2.2 million.

Zhongshang Fucheng has opted for an online auction to expedite the sale, aiming to reach a broad pool of potential buyers.

The decision to use eBay highlights the company’s commitment to transparency and swift asset recovery.

“This move is not just about recovering the funds; it’s a demonstration of our commitment to enforcing the arbitration award and ensuring that due process is followed,” said a consultant working with Zhongshang Fucheng, who spoke on condition of anonymity.

The Nigerian government, already grappling with similar arbitration cases, is facing increased scrutiny as European courts have granted enforcement orders in several countries, including the UK, Belgium, and France.

The ongoing conflict with Zhongshang Fucheng has intensified pressure on Nigerian authorities to address these legal and financial challenges more effectively.

In June 2024, the UK High Court, King’s Bench Division, ruled in favor of Zhongshang’s right to seize the Liverpool properties.

Master Lisa Sullivan’s ruling emphasized that the properties were used for commercial purposes, thereby excluding them from sovereign immunity protections.

The case against Nigeria underscores broader issues related to international arbitration and asset recovery, reflecting a growing trend of global legal disputes over state assets.

For Zhongshang Fucheng, the auction of the Liverpool properties represents a critical step in securing the funds awarded by the arbitration panel.

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NLC Prepares for Protest Against Alleged Intimidation of President Ajaero by Police

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The Nigeria Labour Congress (NLC) has announced plans for mass protests and industrial action in response to what it describes as the harassment and intimidation of its president, Joe Ajaero.

This decision follows a summons by the Nigeria Police, accusing Ajaero of involvement in criminal conspiracy, terrorism financing, treasonable felony, subversion, and cybercrime.

In a communique issued at the end of an emergency meeting held on Tuesday, the NLC expressed outrage at the police’s actions and warned that if any harm befalls Ajaero or any other leader of the labour movement, the organization would mobilize its members for nationwide protests.

The congress also hinted at industrial action in defense of its leadership, which it views as being under attack.

“The Congress will not hesitate to take all necessary actions, including mass protests and industrial actions, to protect the integrity and independence of the labour movement,” read the communique signed by Sani Minjibir, Deputy President of the NLC.

“If anything happens to the President of the Congress or any other leader in furtherance of these tendentious allegations by the state, we will not stand idle.”

The NLC further called upon civil society groups and the general public to stand in solidarity with the labour movement, describing the situation as a fight against “injustice and oppression.”

The congress urged Nigerians to defend the country’s democratic values and support their cause in what they see as a critical moment for the future of the labour movement in Nigeria.

The controversy began earlier this week when the police issued an invitation to Ajaero, asking him to report to their Intelligence Response Team (IRT) in Abuja on Tuesday, August 20th, 2024.

The police warned that a warrant for his arrest would be issued if he failed to comply. According to the invitation, Ajaero is being investigated for a range of serious charges, including terrorism financing and cybercrime.

However, Ajaero’s legal counsel, led by renowned human rights lawyer Femi Falana, responded to the police on Tuesday, citing the short notice of the invitation as the reason Ajaero could not attend on the scheduled date.

The letter stated that Ajaero had prior engagements and requested an extension to Wednesday, August 29th, 2024. Falana also demanded detailed information regarding the allegations against Ajaero.

In its communique, the NLC condemned the invitation as a form of “witch-hunting, intimidation, and harassment,” insisting that the charges against Ajaero were politically motivated and intended to weaken the labour movement.

The NLC described the police’s actions as a blatant attempt to silence the leadership of the workers’ movement, warning the government to desist from further antagonizing its leaders.

“We view this as a calculated attempt to weaken and destabilize the labour movement, which has always stood as a bastion of democratic principles and the voice of the Nigerian masses,” the statement continued. “We remain resolute in our commitment to defending the rights and interests of workers and the Nigerian people. We shall not be cowed or intimidated by these desperate attempts to silence us.”

In anticipation of further escalation, the NLC directed its affiliate unions and state councils to begin mobilizing members across the country, stating that it is prepared to take any measures necessary to protect its leadership and the integrity of the labour movement.

The NLC warned the government that any attempt to undermine their rights or freedoms would be met with fierce resistance, including potential strikes and mass actions across Nigeria.

As the deadline for Ajaero’s appearance before the police approaches, tensions between the government and the labour union continue to rise.

The outcome of this confrontation could have far-reaching implications, not only for the leadership of the NLC but also for the broader landscape of Nigeria’s labour and civil rights movements.

The NLC has vowed to stand firm, declaring that it will continue to fight for justice, fairness, and the rule of law in Nigeria.

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