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”.
Whoa! This blog looks exactly like my old one! It’s on a totally different subject but it has pretty much the
same layout and design. Excellent choice of colors!
%%
My page :: buy cbd e liquid near me
I have гead so many content concerning the blogger lovers exceρt thiѕ
post is really a nice piece off ԝriting, keep it up.
Also visit my website :: Túi xách công sở nữ đựng laptop
%%
Stop by my web site – how to get investors In south africa
I really like it whenever people get together and share views.
Great site, stick with it!
my homepage – black caviar
%%
Hello just wanted to give you a quick heads up. The text in your content seem to be running off the screen in Opera.
I’m not sure if this is a formatting issue or something to do with web browser compatibility but
I figured I’d post to let you know. The layout look great though!
Hope you get the problem solved soon. Kudos
You can usually anticipate a ton of explosions and world-ending
threats that check the willpower of his heroes.
%%
Here is my blog post: how to get funding for a business
Wow! At last I got a web site from where I be able to really take valuable facts concerning my study
and knowledge.
%%
Also visit my homepage … Upvc Doors enfield
I have to show some appreciation to the writer for rescuing me from such a predicament. Right after searching through the the net and seeing tips that were not powerful, I assumed my entire life was over. Living without the presence of answers to the problems you have sorted out as a result of your entire website is a crucial case, and ones that could have in a negative way affected my entire career if I hadn’t come across your site. Your own personal capability and kindness in touching every aspect was priceless. I am not sure what I would’ve done if I hadn’t come across such a solution like this. It’s possible to at this moment look ahead to my future. Thanks very much for your high quality and results-oriented help. I won’t hesitate to suggest your web page to any individual who should have direction on this area.
Thank you a lot for giving everyone an exceptionally marvellous chance to read from this website. It is usually so ideal and stuffed with a good time for me and my office acquaintances to visit your web site at the very least 3 times in a week to see the fresh issues you have. And indeed, I am just usually astounded with your excellent ideas served by you. Some two facts on this page are unequivocally the most beneficial I have ever had.
Please let me know if you’re looking for a author for your blog.
You have some really good posts and I believe I would be a good
asset. If you ever want to take some of the load off, I’d absolutely love
to write some articles for your blog in exchange for a link back to mine.
Please send me an email if interested. Regards!
I really love your site.. Pleasant colors & theme. Did you develop this web
site yourself? Please reply back as I’m planning to create my
very own website and want to learn where you got
this from or exactly what the theme is called.
Many thanks!
%%
Feel free to surf to my web-site … auto accident Attorney
%%
Also visit my homepage Discount code 2022
%%
Also visit my blog – door repair
%%
Also visit my blog … cbd oils for sale
Wow, this article is good, my younger sister is analyzing these things, so I am going to tell
her.
%%
Feel free to visit my web page; Delta8 Thc vape Carts
%%
my blog post … handyman ilford (Klaus)
This is very fascinating, You are a very skilled blogger.
I’ve joined your feed and look ahead to seeking more of your fantastic
post. Additionally, I’ve shared your web site in my social networks
%%
my blog post … Buy cbd Infused Chocolates
%%
My web site buy cbd chocolate online
%%
My webpage window Repairs
Thank you for the good writeup. It in fact was a amusement account it.
Look advanced to far added agreeable from you!
However, how can we communicate?
Hello! This post couldn’t be written any better!
Reading through this post reminds me of my old room mate! He always kept chatting about
this. I will forward this write-up to him. Pretty sure
he will have a good read. Thanks for sharing!
%%
My web site – 100Ml Armani Diamonds
%%
Here is my site: Hemp flowers
%%
My site; 24 hour car locksmith near me (Sally)
Fantastic post.Ne’er knew this, thank you for letting me know.
Почтовые пакеты на заказ
Way cool! Some extremely valid points! I appreciate you penning this article plus the rest of the site is also very
good.
%%
My web site best cbd patches uk
%%
Stop by my homepage: Best perfume unisex
Hi there, just became aware of your blog through Google,
and found that it is really informative. I’m gonna watch out for brussels.
I will be grateful if you continue this in future.
Numerous people will be benefited from your writing.
Cheers!
%%
Feel free to surf to my web site :: Best Make Up
%%
Have a look at my web page: Crypto gateways
%%
my web blog :: cbd treats for dogs near me
%%
Feel free to surf to my blog post … cbd Wax online
%%
Look at my homepage :: Car Key Replacement Near Me
%%
my blog post seo monthly Package
Simply the best JAV Website in Asia. Free JAV Movies, No Spam
or Advertising, just pure Japanese Adult Video
awesomeness!
AV
%%
Feel free to surf to my blog: Double Glazing Ilford
Remarkable! Its truly amazing piece of writing, I have got much clear idea
on the topic of from this post.
%%
Also visit my homepage; cbd topical patches
%%
Also visit my page Ipv6 Proxy Buy
Wonderful article! That is the type of info that are supposed
to be shared around the internet. Disgrace on the
seek engines for no longer positioning this submit higher!
Come on over and discuss with my site . Thank you =)
We also help our purchasers with financial institution deposit to file citizenship purposes.