The 2020 CAMA and Beneficial Ownership in the Extractive Industry
Communications
3 September 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”.
Informative article, just what I needed.
%%
My site; quotes on life
%%
Feel free to visit my web site; Motorcycle injury lawyer
%%
my blog – mesothelioma prognosis
Good way of describing, and fastidious article to obtain facts
on the topic of my presentation focus, which i
am going to deliver in college.
%%
Also visit my homepage; Business funding agencies In South africa
%%
my web-site; Window Doctor Bromley
%%
Review my web blog; sash window repairs (Hong)
%%
My page double-glaze
%%
my homepage … glass replacement croydon
%%
my site – Upvc door handles
%%
Feel free to surf to my webpage: Window glass replacement near me
%%
my web site … mesothelioma Lawsuit
%%
My web-site :: best
%%
Also visit my blog Asbestos Attorney – https://Your-New.World/Mesothelioma-Settlement-Payments-Better-Than-Guy-Kawasaki-Himself/,
What’s up i am kavin, its my first occasion to commenting
anywhere, when i read this article i thought i could also make comment due
to this sensible article.
%%
Check out my web blog … Replace upvc door handle
%%
Visit my blog post – replace glass in Window
%%
Also visit my blog; Sweets Edibles
%%
Stop by my web site st Albans Window Repairs
%%
Have a look at my site door repair lewisham
%%
my blog Cbd Capsules For Sale
I’ve been browsing online more than 4 hours today, yet I never found any interesting article
like yours. It is pretty worth enough for
me. Personally, if all webmasters and bloggers made good
content as you did, the internet will be much more useful than ever before.|
I couldn’t resist commenting.
Very well written!|
I will immediately clutch your rss feed as I can not in finding your e-mail subscription hyperlink or e-newsletter service.
Do you’ve any? Kindly allow me know in order that I may just subscribe.
Thanks. |
It is perfect time to make some plans for the future and it’s time to be happy.
I have read this post and if I could I wish to suggest you some interesting things
or tips. Maybe you could write next articles referring to
this article.
%%
Take a look at my homepage … doors Repair
%%
Also visit my webpage: mens suede leather jacket
%%
Stop by my blog: Pleural mesothelioma
%%
Here is my website :: double glazing replacement Window
%%
My web site – glass Window repairs
%%
Check out my webpage st albans window repairs
%%
Check out my webpage: lewisham window and Door
%%
Also visit my web-site: Sliding Doors Barnet
%%
Feel free to visit my webpage :: quotes About change
%%
My blog replacement upvc Door panel
%%
Also visit my site :: self motivation quotes
%%
My web-site; upvc Window repair
%%
My web page: repairing Glass (http://bbs.medoo.hk/Home.Php?mod=space&uid=248382&do=profile)
buy vardenafil 60 mg sale [url=https://levitrab.store/]order levitra for sale[/url] vardenafil
%%
My web blog :: Door Repair Near Me
%%
Feel free to visit my blog post; double Glazed Window installation
%%
Look at my site … Double Glazing Companies Near Me
%%
Also visit my webpage – double glazed Window repairs near me
%%
My web-site … new windows high wycombe
%%
Here is my blog post – Double Glazing companies near me
%%
Also visit my website – cbd capsules for sale
%%
My website; Door repair st albans
%%
Here is my web blog: Brown Leather Jacket Mens Uk
%%
Here is my homepage door repair bromley
%%
Also visit my web site replace upvc door Panel
%%
my site sexdoll
Hi, I think your website might be having browser compatibility issues.
When I look at your blog site in Firefox, it looks fine but when opening in Internet Explorer, it has some overlapping.
I just wanted to give you a quick heads up! Other
then that, amazing blog!