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”.
buy viagra online
%%
Here is my blog – Door repairman
Falls du Interesse an scharfen Frauen hast chip leicht zu haben sind brauchst
du kostenlose Sexkontakte von Swingels. Wir bieten euch umsonst Kontakt Bilder von einsamen Frauen die Lust auf schnellen Sex haben.
Rattenscharfe Weiber via unstillbarem sexuellem Verlangen warten auf
deine privaten Zuschriften für die Kontaktaufnahme.
Du magst raschen Sex ohne Anlaufschwierigkeiten?
Hier den fickbereiten Ludern geht es identisch sie wollen nur schnell poppen und einen ausdauernden Sexualpartner der jene ordentlich
durchs Bett scheucht.
Sexuelles Verlangen ist hier von beiden Seiten aus gegeben.
Treffen hier hübsche Weiber zum ficken. Einfach
Frauen kennenlernen und anschreiben.
Wir bei Swingels bestizen uns überlegt das es besser ist euch auch etwas mehr zu zeigen als reine Fick Kontakte und so kamen wir zu der Idee euch Nacktbilder von Asiatinnen, bezahlbaren Telefonsex und hübsche Girls nackt zu zeigen. Wir sind
uns sicher das ihr das Sexuelle Abenteuer mögen werdet.
Hier diese Scharfen Frauen mit ihren sexy oufits sind allesamt in unserer Datenbank und warten auf
deinen Besuch.
Wenn du auf einer der Sexkontakt Anzeigen antworten willst brauchst du nur auf das
Email Symbol klicken nach dem regstrieren und schon kannst du deine Holde Schönheit für ein tabuloses Ficktreffen anschreiben.
Aber bitte mit ein paar Aussage kräftigen Bildern.
Die Frauen wollen wissen was sie erwartet und werden euch ganz bestimmt nicht antworten falls ihr kein Foto von euch beifügt oder aber
euer Profil richtig ausgefüllt habt.
%%
Also visit my webpage; Inspirational Quote
%%
Here is my site: Upvc doors near me
%%
Also visit my homepage: Replacement Upvc Door Handles
%%
Check out my blog double glazed doors (https://ourclassified.net)
%%
Also visit my homepage; Upvc Windows Repairs
%%
Here is my website – Croydon Windows
%%
Take a look at my webpage; African Investor
%%
my site; Business Funding Companies In South Africa
%%
Take a look at my web page: Timber windows reading
%%
My homepage … locksmith in portsmouth (idun.kkk24.kr)
%%
My website Sexdoll For Sale
%%
Here is my web site – upvc Windows
%%
Feel free to visit my blog … sexdoll for sale
%%
Feel free to surf to my website; edibles sweets uk
%%
Feel free to visit my web page netsuite Solution Consultant
%%
Feel free to surf to my web blog – 300mg Cbd Gummies
%%
Here is my blog post cbd balm uk
%%
Feel free to visit my web page … mesothelioma Legal
%%
my web site Cbd Balm Muscle
%%
Also visit my site … double Glaze windows
%%
My blog: replacement lock for upvc door
%%
Also visit my page :: Sexdoll sales
%%
Also visit my webpage leather Flight Jackets
%%
Feel free to surf to my web blog :: locksmiths Fulham
%%
Also visit my blog post – doors and windows london
%%
Look into my page: Consultant Netsuite
%%
Also visit my web site replacement window
%%
My web-site … replace upvc door panel
%%
Also visit my web page … replacement upvc Door panel
%%
Visit my web page :: How To Get Funding For A Business
Everything is very open with a very clear description of the challenges.
It was truly informative. Your website is very helpful.
Thanks for sharing!
%%
My web-site :: lock Smith fulham
%%
Have a look at my webpage; Sexdoll for sale
%%
Also visit my webpage: windows london
%%
my webpage sexdoll for men (Earnestine)
%%
Here is my web site :: Replacement Double Glazed Glass Only
%%
my website :: asbestos Attorneys
%%
Visit my site: investors looking for projects to fund in namibia
%%
my web page :: auto locksmith
Hmm is anyone else experiencing problems with the images on this blog loading?
I’m trying to find out if its a problem on my end or if it’s the blog.
Any suggestions would be greatly appreciated.
%%
My site :: Sexdoll For Sale
%%
Also visit my homepage … Double glazing Installation near me
%%
Here is my site – looking for business investors in south africa
%%
Also visit my webpage – window installation near Me
%%
My blog locksmiths worthing
Pausanias wrote of races for girls at Olympia, but these
events in honour of Hera had been of minor significance.
Feel fee to surf to my web site :: nba games (Hazel)
I am actually pleased to read this website posts which
consists of tons of helpful facts, thanks for providing these information.