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”.
%%
my web page :: seo company Uk
%%
my web blog … male masturbation toys
I do not even know how I ended up here, but I thought this post was great.
I do not know who you are but definitely you are
going to a famous blogger if you aren’t already 😉 Cheers!
You should be a part of a contest for one of the highest quality sites on the
internet. I’m going to recommend this website!
%%
Here is my webpage; investor pitch Deck consultant,
https://ximp.ly/,
You actually make it seem so easy with your presentation but I find
this topic to be really something that I think I would never understand.
It seems too complex and extremely broad for me. I am looking forward for your
next post, I will try to get the hang of it!
%%
Also visit my site: upvc window handle Replacement
joker123 adalah login joker gaming slot 123 penyedia prediksi togel hk atau togel
hongkong paling update dan terpercaya, download apk untuk mendapatkan informasi joker123 prediksi dengan gampang
Fіrst off I ԝant tⲟ say superb blog! I had a quick
question ѡhich I’d ⅼike t᧐ ask if you ⅾo not mind.
I was inteгested to fiind оut how ʏou center yⲟurself аnd
сlear yοur head prior tⲟ writing. I һave had a hartd timе clearing mʏ mind in gettіng my ideas out theгe.
Ι do enjoy writing һowever itt just ѕeems like the first
10 tߋ 15 minutes are wastrd јust tгying tߋ figure out howw to bｅgin. Any recommendations or hints?
Many thanks!
%%
Also visit my web page :: lovense max vs max 2 – Gelinodasi.net –
%%
Here is my web site :: Hush Lovense (https://Penpek.Com/)
%%
Here is my web-site :: Repair Double Glazing Windows
Appreciate the recommendation. Let me try it out.
%%
Feel free to surf to my web-site: replacement upvc windows High Wycombe
%%
Feel free to visit my blog: Best perfumes unisex – theconnect1.com –
%%
Feel free to surf to my web-site; pitch deck team
%%
My web page – investors willing to invest in africa
%%
my homepage 510 cbd cartridge
%%
Review my web site; Auto Injury Lawyer
url so thankfull now.
url so thankfull now.
I’m gone to сonveу my little brother, tat he should also
pay a quick visit this weblog on regular basis to get updated
from hottest news update.
Wow, this paragraph is pleasant, my younger sister is analyzing these kinds of things, so I
am going to convey her.
Have a look at my blog post – เว็บบทความ
%%
Feel free to surf to my website … Best Skincare Sets Near Me
Ahaa, its pleasant dialogue regarding this piece of
writing here at this weblog, I have read all that, so at this
time me also commenting at this place.
url so thankfull now.
url so thankfull now.
url so thankfull now.
I’ll The 2020 CAMA and Beneficial Ownership in the Extractive Industry right away snatch your rss feed as I can’t The 2020 CAMA
and Beneficial Ownership in the Extractive Industry in finding your e-mail subscription The 2020 CAMA and Beneficial Ownership in the
Extractive Industry link or The 2020 CAMA and Beneficial Ownership in the Extractive Industry newsletter service.
Do The 2020 CAMA and Beneficial Ownership in the Extractive Industry you have any?
Kindly permit me understand in order that I may subscribe.
Thanks.http://dorf-v8.de/url?q=http%3A%2F%2F0pi.ru%2Fpost.php%3Furl%3Dhttps%3A%2F%2Floginken.com%2F
%%
Have a look at my webpage … Back Link Software
%%
Also visit my web page – how to get investors
%%
Feel free to visit my website; broad spectrum cbd Near me
%%
Feel free to surf to my web-site; door Sale
Ι merеly wanted to thank yoᥙ once more for
this amazing web-site yoᥙ have designed hｅre.
Ӏt tгuly is full off useful tips fоr those who аrе reɑlly interｅsted in thіs ҝind of subject,
іn partiсular this veгy post. Yоur aⅼl rеally sweet ɑs wｅll
as thoughtful of others and aⅼѕⲟ reading уour site posts іs an excellent deligh
wih me. Annd that of ɑ generous pｒesent! Mary and I are gߋing to haᴠe excitement
mаking uѕe оf ｙour tips in wһat ѡe neеd to dߋ in a feew weeks.
Ouг checklist іs a kilometer long and tips ᴡill definiteⅼy be pսt to beneficial use.
%%
Feel free to surf to my webpage :: cbd Vape pen kit uk
%%
Look into my web page – investor pitch deck Consultant
Wow, amazing blog layout! How long have you been blogging for?
you made blogging look easy. The overall look of your web site is
fantastic, as well as the content!
%%
my web site how to Get investors In south africa
url excellent post.
%%
Also visit my web-site upvc windows repairs near me
url excellent post.
url excellent post.
%%
Look into my page … Auto Injury Lawyer
url excellent post.
url excellent post.
%%
Feel free to visit my web site – Angel Investors South Africa
%%
Look at my web page – Replacement Handles For Upvc Windows
%%
Here is my webpage … key Cutting Salford
This info is priceless. Where can I find out more?
%%
My web page: Instinctual Variant