The 2020 CAMA and Beneficial Ownership in the Extractive Industry
Communications
September 3, 2020
By Charles Uche ESQ
Incorporating and fronting companies is a convenient and effective way of concealing identity, engaging in illicit transactions and evading liabilities. In many countries, a company can be formed without disclosing the identity of the individual who ultimately controls or profits from the business, i.e., the beneficial owner. Criminals and politically exposed persons (PEPs) can assign “nominee” shareholders to be listed on official documents or can list other legal entities (other companies can be shareholders in a company) as the “owners,” thereby creating a chain of companies–often across borders–that can be difficult for investigators and law enforcement to trace and recover.
Connected Development (CODE), has over the year, through its Conflict & Fragility project, in partnership with Oxfam-in-Nigeria advocated for a robust beneficial Ownership transparency through the instrumentality of a robust legislation as an essential means for combating corruption, stemming illicit financial flows, and fighting tax evasion. While many initiatives exist to maintain and disclose beneficial owners of companies in Nigeria, like the Beneficial Ownership Register launched by Nigeria Extractive Industries Transparency Initiative (NEITI) in December 2019, none of them until the enactment of the 2020 Companies and Allied Matters Act (CAMA) had the statutory backing for enforcement.
Documents from Panama papers on Dan Etete and Kolawole Aluko can be used as classical case studies in demonstrating how these two individuals, like many others, capitalised on the non-existent or fragile regulatory framework in Nigeria’s extractive “oil & gas” sector to launder money and evade liabilities which has cost the Nigerian government and people revenue in the billions of dollars. Till date, none of the aforementioned persons has been successfully prosecuted and convicted partly due to concealment of identities and fronting of shell companies in their transactions. Shell companies are legal entities “companies” that are non-operational and lack assets or staff. They are conveniently used by money launderers to keep their identities hidden while they engage in illicit transactions across borders and evade tax.
Dan Etete: Dan Etete, a former Petroleum Minister under Nigerias Dictator Head-of-State, Gen. Sani Abacha had in 1998, incorporated a Shell company named “Malabu Oil & Gas Limited” using a fictitious name “Kweku Amafegha”, with few other persons, while he was the ultimate and beneficial owner of the company – though his real name did not appear in any official documents. Five days after he incorporated this company, he, as Petroleum Minister, awarded this company an oil block “OPL 245”. He used this shell company to launder money across the Nigerian border and acquire luxurious assets, while escaping liabilities.
Kolawole Aluko: Kola Aluko is a businessman and oil executive. Media reports have described Aluko as a key ally to Alison-Madueke, a relationship both have previously denied. He rose to prominence around 2011 when Nigeria’s government awarded two companies he founded or owned valuable oil blocks on a no-bid basis. One of his companies, Atlantic Energy, was created the day before it inked the deals to acquire multimillion-dollar oil licenses.
In Nigeria, only a member of a Public Company (PLC) was under obligation, under the old 1990 CAMA, to disclose in writing when required, the capacity in which he holds any shares in the company; either as a beneficial owner or as a nominee of an interested person. See Sections 94-98, old CAMA.
The 2020 CAMA in section 119 has extended such obligation (to disclose the particulars of shareholding by notifying the company) to persons with significant control in all companies. Similarly, as provided in section 120 of the new CAMA, a person who is a substantial shareholder in a public company and holding (either by himself or by his nominee/proxy) shares in the company which entitle him to exercise at least five per cent (5%) of the unrestricted voting rights at any general meeting of the company, is required to disclose such holding by notifying the company within a stipulated time.
This new disclosure provisions are poised to enhance transparency and prevent asset shielding as well as combat money laundering, terrorism financing and all forms of illicit financial flows by legal entities having limited liability.
While there is no gainsaying that the above disclosure provisions would enhance transparency and accountability in the Extractive sector in Nigeria, especially in the Petroleum Industry, as many of the oil and gas companies are private limited liability companies (LTD); many of which have ‘rightly’ escaped disclosure obligations with no legal sanction – there is also an urgent need for the enactment of the Petroleum Industry Governance Bill (PIGB) which has as one of its core objectives – “to promote transparency and accountability in the administration of petroleum resources of Nigeria”.
It’s wonderful that you are getting thoughts from this paragraph as well as from our
discussion made here.
Also visit my homepage: 바카라사이트
%%
My blog – Truck Accident Lawsuit
Simply wish to say your article is as astonishing.
The clearness on your publish is just nice and i can think you’re an expert
in this subject. Well with your permission allow me to snatch your RSS feed to stay updated with forthcoming post.
Thank you one million and please continue the rewarding work.
Here is my web page: xvideo malay
We absolutely love your blog and find the majority of your
post’s to be precisely what I’m looking for.
Would you offer guest writers to write content for yourself?
I wouldn’t mind composing a post or elaborating on many
of the subjects you write regarding here. Again, awesome web site!
tck 188 yargıtay thanks i like it.
tck 188 yargıtay thanks i like it.?url=https://www.ankara.legal/uyusturucu-madde-ticareti-tck-53457567.html”>tck 188 yargıtay thanks i like it.
süre tutum dilekçesi istinaf thanks i like it.
%%
Here is my page upvc windows bromley
Hello There. I found your blog using msn. This is a very
well written article. I will be sure to bookmark it and return to read more of your useful info.
Thanks for the post. I will definitely comeback.
%%
Here is my page – Flowers
%%
Check out my blog post: Truck injury lawyers
süre tutum dilekçesi istinaf thanks i like it.
%%
Review my page – project funding requirements
The other day, while I was at work, my cousin stole my
iphone and tested to see if it can survive a twenty five foot drop,
just so she can be a youtube sensation. My apple ipad is
now destroyed and she has 83 views. I know this is completely off topic but I had to share it with someone!
Here is my web blog: เกร็ดความรู้
Great info. Lucky me I ran across your site by chance (stumbleupon).
I’ve book marked it for later!
%%
Feel free to visit my blog: Issey Miyake After Shave
%%
Look at my site; netsuite integration Partners
%%
My web page – situs togel resmi – Millard,
%%
My web site … Delta 8 Gummies Online
%%
My homepage – how to become avon rep
رمز و راز یک ازدواج موفق و شاد
پزشک خوب، نظرتان را درباره این مقاله بگویید یا سوالاتتان را بپرسید، متخصصان ما در اولین
فرصت به سوالات شما پاسخ میدهند.
به این معنی که طرف مقابلم را همانطور
که هست بپذیرم و سعی در تغییر یا کنترل او نداشته باشم.
به این معنی که چقدر حاضرم به نیازها و خواستههای طرف مقابل توجه کنم.
برخی از روابط خویشاوندی را که بر اساس همخونی متکی است مبدأ تشکیل خانواده دانند و آن را هسته اولیه تشکیل جامعه میپندارند .
برخی عوامل اقتصادی را در پدیدآیی خانواده
موثر دانسته اند و گروهی عوامل جنسی و
روانی را در شکل گیری این سازمان
ذکر کرده اند . ساختار خانواده نیز در دوره های مختلف
تاریخی به صورت تک همسری ، چند همسری ، مادر سالاری ، پدر سالاری ، خانواده
گسترده و خانواده هسته ای مطرح بوده است .
وقتی زن و شوهر به یکدیگر احترام نمیگذارند، عادتهای منفی
در آنها شکل میگیرد.
https://puncak88.pro/
%%
my blog post: Wood burners near me
%%
my blog post :: sexy real Sex dolls
%%
Feel free to surf to my web page – Double Glaze Repair
%%
My site – Cbd Chocolate
%%
my web page :: cbd edibles poole
%%
my page – Mesothelioma Law
%%
Feel free to surf to my site: best Unisex Perfumes
%%
Here is my web site :: Uk Avon
A fascinating discussion is worth comment.
I do think that you ought to publish more about this
topic, it may not be a taboo matter but usually folks
don’t speak about such subjects. To the next! Best wishes!!
%%
Here is my web blog: best cheap women’s perfume, Hattie,
Hello there! This post couldn’t be written any better!
Reading through this post reminds me of my old room mate!
He always kept talking about this. I will forward this write-up to him.
Fairly certain he will have a good read. Many thanks for sharing!
%%
My website … Project Funding Requirements
Hello there! This article could not bee written any better!
Going through this post reminds me oof my previous
roommate! He continually kept talking about this.
I am going to send this post to him. Fairly certain he’s
going to have a very good read. Many thanks for sharing!
Hey! Would you mind if I share your blog with my twitter group?
There’s a lot of people that I think would really appreciate your content.
Please let me know. Cheers
%%
Here is my webpage – Auto Locksmith
%%
my website – window Restoration oxford
%%
Here is my web-site; Cbd vape Kit
%%
Here is my website Huge Boob Sexdoll
I do not even know how I ended up here,
but I thought this post was great. I don’t know who you are but
certainly you’re going to a famous blogger if you are not already ;
) Cheers!
%%
Also visit my page; Mens masturbators
I am only writing to let you know what a great experience my friend’s girl undergone going through your site. She came to understand plenty of things, including what it is like to have a wonderful giving heart to make other individuals very easily know precisely a variety of extremely tough issues. You undoubtedly exceeded my desires. Thank you for distributing such useful, healthy, educational and also fun tips about that topic to Janet.
Thanks so much for giving everyone such a nice chance to read in detail from this website. It’s usually very pleasing and full of amusement for me and my office fellow workers to search your site no less than 3 times in a week to read the latest items you have got. And indeed, I’m always happy with your incredible techniques you give. Some two facts on this page are indeed the most beneficial we have ever had.
Howdy! I simply want to offer you a big thumbs up for the great information you have got right here on this post.
I’ll be returning to your blog for more soon.
I don’t even know how I stopped up here, however I thought this submit was once great.
I do not realize who you are but certainly you are going to a well-known blogger in the event
you are not already. Cheers!
افزایش سایز و طول آلت تناسلی مردان با دارو،تزریق ژل،دستگاه و جراحی
در حال حاضر، تمرکز مجله دکتردکتر روی موضوعات متنی و ویدیویی
معرفی بیماریها، علائم، دلایل، روشهای درمان، تشخیص و موضوعات ترند روز است.
لزوماً برای شکستگی آلت نباید رابطه جنسی خشن برقرار
شود، اما برقراری رابطه جنسی در پوزیشنی
که آلت به شدت به استخوان برخود میکند، احتمال شکستگی آن را افزایش میدهد.
بر اساس تحقیقات، علائم شکستگی آلت
تناسلی که شامل شنیدن صدای تق تق یا از دست دادن ناگهانی حس نعوظ
نمیشود، نوع دیگری از آسیب آلت تناسلی است.
از آنجایی که این آسیب میتواند باعث آسیبهای جبران
ناپذیری روی عملکرد جنسی و دفع ادرار مردان داشته باشد، بسیار
مهم است که به سرعت اقدامات پزشکی
انجام شود.
We’re a group of volunteers and starting a new scheme in our community.
Your website offered us with valuable information to work on. You’ve done a formidable job and our whole community will be thankful to you.
canadian drug prices prescription drugs online without doctor
Hey I know this is off topic but I was wondering if you knew of any widgets I could add
to my blog that automatically tweet my newest twitter updates.
I’ve been looking for a plug-in like this for quite
some time and was hoping maybe you would have some experience with something like this.
Please let me know if you run into anything.
I truly enjoy reading your blog and I look forward to your new updates.
My blog :: FreshWave Portable AC