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”.
%%
Feel free to surf to my web page – Motorcycle injury attorney
Quality articles or reviews is the main to attract the users
to pay a visit the web page, that’s what this website is providing.
my webpage – เว็บความรู้
clomid lowest price cheap clomid without prescription clomid challenge test borderline high results
%%
my web site – car Injury lawsuit
Dr. Anna H. Chacon
Dr. Anna Η. Chacon is ɑ dermatologist and Miami, Florida, native.
Ѕһe graduated аѕ valedictorian fгom Carrollton School of the
Saced Heart in Miami ɑnd wаs accepted into aɑn Ivy Leagje
medical chool һer senior ʏear of high school.
Sһе completed her bachelor’s iin economics аnd medicine att Brown University tһrough thhe combined Program іn Liberal Medical Education. While at
Brown, sһe received ɑ scholarship to pursue clinical clerkships ɑt one of tһe largest hospitals in the Middle East, Rambam (Rabbi Moshe Βеn-Maimon) Medical Center in Haifa,
Israel, thгough tһe Rappaport Faculty օf Medicine
օf thе Technion, Israel’s oldеѕt university. Ⴝhe pursued a fellowship іn dermatologic and laser surgery ɑt the University of Miamji andd completed һеr surgical
internship аt Orlando Regional Medical Center
іn Orlando. Ⴝhе completed hеr dermatology residency аt tһe LAC + USC Medical Center іn Los
Angeles, California, where ѕhe served ɑs chief resident.
At L.Ꭺ. County, Dr. Chacon wwas exposed to a wide range оf pathologies mⲟst оther dermatology residents juust гead bout in textbooks.
After graduating from residency, ѕhe worked in the
ABC News Medical Unit in New York City ɑs a medcal journalist,
reporting ɑnd covering breaking medical news nationwide ɑnd internationally.
Throughout her career, ѕhe haas Ьeen able to wοrk аt Asian Hospital & Medixal
Center andd tһе Resеarch Institute օf Tropical Medicine,
аn authority bу the Philippines Ministry ⲟf Health, to prevent and control tropical ɑnd infectious diseases in dermatology, including leprosy, Hansen’ѕ disease, ɑnd HIV in Manila, the Philippines.
Sһe alѕo hаs traveled internationally tto ѕee patients, pгesent papers internationally, aand fսrther expand and broaden her education, knowledge ɑnd breadth in dermatology.
my web рage :: LuckyVitamin Gear Vitamins
%%
Also visit my web-site … double glazed window Repairs, недвижимостьднр.xn--P1ai,
%%
my site :: boat Injury lawyer
%%
Take a look at my website: Spf Moisturiser Face
%%
Feel free to visit my web site cbd gloucestershire
%%
Stop by my webpage Uk Edibles Sweets
I’ve read a few just right stuff here. Definitely price
bookmarking for revisiting. I surprise how so much
attempt you place to create such a great informative web site.
%%
Here is my homepage spf day Moisturiser
%%
my web-site Misted double glazing repairs near me
%%
Feel free to visit my web-site: real life adult dolls
I’m really impressed along with your writing abilities and also with the structure for your blog.
Is this a paid subject or did you modify it your self? Anyway keep up
the nice quality writing, it is uncommon to see a great blog like this
one nowadays..
Some us know all relating to the compelling medium you present
powerful steps on this blog and therefore strongly encourage contribution from other ones on this subject while our own child is truly discovering a great deal.
Have fun with the remaining portion of the year.
Почтовые пакеты на заказ
%%
Stop by my web site :: dolls for sale
%%
my site … Spf30 Moisturiser
%%
My homepage – cbd capsules 1000mg uk
Your mode of explaining the whole thing in this piece of writing is in fact fastidious,
all be able to effortlessly know it, Thanks a lot.
Hi i am kavin, its my first occasion to commenting anyplace, when i read this article i thought i could
also create comment due to this sensible post.
%%
my web site – adult toy store near me
Fantastic goods from you, man. I’ve understand your stuff previous to and you’re just too wonderful.
I actually like what you’ve acquired here, really like what you’re
stating and the way in which you say it. You make it entertaining
and you still take care of to keep it sensible. I can’t wait to read much more from you.
This is really a wonderful web site.
Here is my website … เกร็ดความรู้
%%
Take a look at my webpage … electric wall.Mounted fire
I’ve been surfing on-line more than 3 hours lately, yet I
by no means discovered any attention-grabbing article like yours.
It is beautiful value sufficient for me. Personally, if all webmasters and
bloggers made just right content material as you probably did,
the web can be much more helpful than ever before.
bookmarked!!, I really like your site!
%%
my homepage: night cream Retinol
%%
my web page … Cbd Ipswich
I really like it whenever people get together and share views.
Great site, continue the good work!
%%
Here is my blog :: sex Toys free shipping
%%
my site … Quotes to inspire
I alwaｙs spent my half аn h᧐ur to read thіs website’ѕ posts
daily along with a cup cost of generic colchicine without dr prescription coffee.
I’m really impressed with your writing skills as well as with the
layout on your weblog. Is this a paid theme or did you modify it yourself?
Either way keep up the excellent quality writing, it is rare to see a great
blog like this one these days.
%%
Also visit my web page; Sim Deals
%%
Here is my web-site :: Buy sex dolls
%%
Review my webpage; Wisdom quotes (upvcalumachineryparts.Com)
%%
Here is my website; Wall Fire
%%
Also visit my web site About love quotes
%%
my web page – Boat injury lawsuit
I am curious to find out what blog system you have been working with?
I’m experiencing some small security issues with my latest site and
I would like to find something more safeguarded. Do you
have any recommendations?
%%
My page: Success Quotes
%%
My web-site … best day cream
%%
My blog post … electric Fire wall Mounted
mailer
%%
Also visit my website real doll Sex doll
%%
Here is my website – Cbd Balm Muscle
%%
Also visit my homepage … sex Dolls reviews
We also help our purchasers with financial institution deposit to file citizenship purposes.
%%
my site: cosplay wigs cheap