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”.
Couchlock
This is what Im looking for.
%%
Visit my web-site; Business Investors In South Africa
%%
Feel free to surf to my page sexdoll Sales
%%
Review my web blog … Replace Upvc Door Handle
%%
Feel free to surf to my web page :: window handle replacement
%%
Visit my page; replacement lock for upvc door
%%
Here is my homepage Oracle Netsuite Consultancy
Hello Dear, are you genuinely visiting this web site regularly,
if so after that you will absolutely obtain nice
experience.
%%
Also visit my homepage – Leather Jacket Hoodies
%%
Here is my blog: wooden doors Barnet
%%
My webpage Mesothelioma Compensation
%%
my web page: Double Glazed Window Repair
%%
My web blog buy cbd capsules
%%
My web blog; Locksmiths Manchester
%%
Take a look at my blog; Window repair
%%
Feel free to surf to my web page: double glazed replacement glass
%%
Feel free to visit my web site Horsham locksmiths
Does your website have a contact page? I’m having problems locating it but,
I’d like to send you an email. I’ve got some creative ideas
for your blog you might be interested in hearing.
Either way, great site and I look forward to seeing it develop over time.
%%
Feel free to surf to my web site :: Sexdolls for men
%%
Have a look at my website Sexdoll Sales
%%
Also visit my web-site upvc replacement door handles
%%
Check out my webpage … double Glaze windows
%%
Look at my web-site :: upvc Window repairs near me
%%
Also visit my web-site – repair upvc window
%%
my blog post … netsuite Implementation consultant
%%
Feel free to visit my page: composite doors Reading
%%
Here is my site – double Glazed near me
%%
Also visit my page Netsuite consultancy
%%
Also visit my site: Window company Croydon
%%
My site … Replacement Windows
%%
Feel free to visit my web blog double glazing repairs in croydon (Leah)
%%
Also visit my web-site :: upvc doors repair
%%
my blog sexwith doll
%%
Review my web blog; upvc door repairs near me
%%
Check out my webpage upvc door handles – Anthony –
%%
Also visit my blog post – quotes about Life
%%
Feel free to visit my blog … Upvc Door Panel
%%
Have a look at my site – upvc doors oxford – Guillermo,
%%
My blog post: Double glazed Units
I wanted to send a note to be able to say thanks to you for all of the splendid guides you are giving on this website. My time-consuming internet lookup has at the end been honored with brilliant tips to write about with my friends and family. I would tell you that most of us readers are unquestionably lucky to dwell in a fine website with many special individuals with very beneficial hints. I feel pretty grateful to have used your entire web page and look forward to many more fabulous moments reading here. Thank you once more for everything.
Thanks for all of your labor on this site. My mother delights in participating in investigations and it is simple to grasp why. My partner and i learn all concerning the compelling means you produce functional guides by means of this web blog and even attract participation from people on this area then our favorite daughter is without a doubt becoming educated so much. Have fun with the rest of the year. You’re conducting a powerful job.
Undeniably believe that which you said. Your favorite justification appeared to
be on the web the easiest thing to be aware of.
I say to you, I definitely get annoyed while people think about worries that they plainly do not know about.
You managed to hit the nail upon the top and also
defined out the whole thing without having side effect , people can take a signal.
Will likely be back to get more. Thanks
my web page; Security van
I truly wanted to post a remark to be able to thank you for the great tricks you are writing at this site. My incredibly long internet search has now been rewarded with excellent concept to share with my family. I would repeat that many of us site visitors are truly fortunate to exist in a magnificent site with so many lovely people with useful solutions. I feel quite lucky to have come across the webpages and look forward to many more fun minutes reading here. Thank you again for all the details.
%%
Visit my page … glass replacement london [Concetta]
%%
Also visit my web site … glass repairs near me
%%
my webpage – Double Glazing windows
%%
My blog post repairing glass
%%
Have a look at my website – Replacement Window
%%
Also visit my web page; uk auto locksmith – Vilma,
penis enlargement