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”.
hello there and thank you for your information – I have definitely picked up anything new from
right here. I did however expertise some technical issues using this web site, as I experienced to reload the web site lots of times previous to I could get it to load
correctly. I had been wondering if your web hosting is OK? Not that I am complaining, but sluggish loading instances times will very frequently affect your placement in google
and can damage your quality score if advertising and marketing with Adwords.
Well I am adding this RSS to my email and can look out for much more of your respective interesting content.
Ensure that you update this again soon.
Have a look at my web page; call girls in islamabad (Dirk)
%%
my webpage – Truck Injury
%%
My site … cbd oil Tinctures for sale
%%
Feel free to surf to my page :: Bmw Keys
%%
Also visit my blog post; door fitters Near me
%%
Stop by my website; mens biker Jackets
%%
my web blog :: Adhd Private Assessment
%%
Look into my blog … Mens Jackets Leather
%%
Have a look at my page … long blazer men
%%
Also visit my homepage: Delta8 Thc Vape Cartridge
%%
Also visit my webpage :: best delta 8 gummies
%%
Also visit my homepage … window doctor bromley – Jeanna,
%%
Review my web page: van security deadlocks
%%
Here is my webpage; netsuite erp implementation partners [appon-solution.De]
%%
my homepage Netsuite Implementation Partners
%%
my site Window repair
%%
My site: 18 Wheeler accident lawsuit
%%
Also visit my web-site; Black friday Sex toy deals
%%
My web site … replacement window glass (Nam)
%%
my web site – Double glazing replacement Window
%%
Also visit my blog post … Upvc doors St albans
%%
Check out my blog post barnet window and door
%%
Also visit my blog post :: bmw 1 series key
%%
My site; Private adhd Assessment london
%%
my homepage :: nearest sex toy store
%%
my blog post; Edible Online
%%
Also visit my web blog: Consulting Pitch Deck Template
%%
Here is my homepage Upvc Window Repair
%%
Also visit my blog – Upvc Fitters Near me
For example, a car dealership may enable prospects
to schedule a service heart appointment online.
If you are a sports car buff, you would possibly go
for the Kindle Fire, which runs apps at lightning speed with its excessive-powered microprocessor chip.
Not solely do many contributors pledge to raise considerable funds for
a variety of charities, a portion of every runner’s entry price goes to the marathon’s personal London Marathon Charitable Trust,
which has awarded over 33 million pounds ($5.3 million) in grants to develop British sports and recreational facilities.
This stuff focus the sun’s vitality like a complicated magnifying glass
hovering over a poor, defenseless ant on the sidewalk. Microsoft, Apple and Google
have been in some high-profile squabbles over the
years. There have been a couple of cases where victims have
been left on the hook for tens of hundreds of dollars and spent years attempting to
restore their credit, however they’re exceptional.
Also visit my homepage; freecredit
%%
Here is my webpage – Affordable Seo Packages United Kingdom
%%
My web site :: butt plugs
%%
Here is my web page – Double.Glazing Repairs
%%
my web blog – cbd dog oils Uk (https://www.iwannabea.ninja/smf/index.php?action=profile;u=201409)
%%
Here is my web site … Repair window
%%
My website … Motorcycle Accident attorney
%%
my web blog: water soluble cbd uk wholesale
%%
Look into my page: windows and doors near Me
%%
Also visit my homepage – Windows luton
%%
Here is my site … motorcycle Injury attorney
steroid satin al steroid satın al
Düsünceler Hakkinda Bilmek steroid satin al
Anabolik Steroid
En Kurallari Of steroid satin al
Vücut gelistirme ilaçlari denilince akla ürün anabolik steroidler, fitness sporuyla
ugrasan çogu sporcunun duydugu seylerdir. Bu yüzden okunusu sporcular istedikleri ürünler saglamak hakkinda Steroid Satin Al
seklinde taha
i yaparak steroid ürünlerine yetismek isterler.
Ayrica Steroid Fiyat maksadiyla bizimle iletisime geçerek ürünler üzerine nesne) bilgiye sahip olabilirsiniz.
Definitive Guide steroid satin al için
steroid satin al Ile ilgili detayli notlar
steroid satin al
%%
My web page: Door fitters
%%
my blog post Double Glazing Near Me
%%
Here is my web-site … Asbestos legal
%%
My site :: Where to find investors in south africa
%%
Visit my site – key replacement car
%%
Have a look at my web blog :: Double Glazing
https://35.193.189.134/
Thanks for sharing your thoughts. I truly appreciate your efforts and I
am waiting for your next write ups thanks once again.
Appreciation to my father who told me concerning this webpage, this website is actually amazing.