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. I discovered your blog the use of msn. This is a really smartly
written article. I will be sure to bookmark it and return to read
extra of your helpful information. Thanks for the post.
I will definitely return.
Very soon this site will be famous among all blog people, due to
it’s good content
Great site you have got here.. It’s difficult to find high quality writing like yours nowadays.
I truly appreciate individuals like you! Take care!!
It is the best time to make some plans for the long run and it’s time to
be happy. I’ve learn this post and if I could I desire to
suggest you few interesting issues or suggestions.
Maybe you can write subsequent articles relating to this article.
I wish to learn even more issues approximately it!
Hi it’s me, I am also visiting this web site regularly, this
site is actually good and the viewers are actually sharing pleasant thoughts.
Thanks to my father who shared with me about this
weblog, this weblog is truly awesome.
Just want to say your article is as astonishing. The clearness on your put up is simply cool and
i can assume you’re an expert in this subject.
Well together with your permission let me to snatch your feed
to keep up to date with forthcoming post. Thanks one million and please carry on the rewarding work.
Hi woould yyou mind lettging mme know hich webhos you’re
using? I’ve loadewd you blokg iin 3 completely different browserss aand I
must saay thiis blg loadss a lott quickeer theen most.
Can yoou recommesnd a good ijternet hoosting provvider aat a fir price?
Kudos, I appreciate it!
I’m gone to convey my little brother, that he should also
pay a quick visit this webpage on regular basis to obtain updated from newest news.
I am in fact glad to read this weblog posts which carries plenty of helpful information, thanks for providing these kinds of data.
Hello to all, the contents present at this website are in fact awesome
for people experience, well, keep up the nice work fellows. https://rabbitroom.com/members/dcdcdscv/profile/
Thank you for the auspicious writeup. It in fact was a leisure account it.
Look complex to far added agreeable from you! By
the way, how could we keep up a correspondence?
I llike the helpful іnformation ｙou provide in y᧐ur articles.
І will bookmark your blog and check agaіn herе regularly.
I am quite ceгtain I will learn a ⅼot oof new stuff гight hеre!
Good luck for the neхt!
Hi every one, here every person is sharing such experience,
so it’s pleasant to read this blog, and I used to pay a quick visit this
web site every day.
online porn video
For newest information you have to pay a quick visit web and on internet I
found this site as a best web page for newest updates.
penis enlargement
Way cool! Some extremely valid points! I appreciate you penning this write-up
and also the rest of the site is extremely good.
Appreciate the recommendation. Will try it out.
This article is genuinely a pleasant one it helps new the web people, who are wishing for blogging.
สล็อตแมชชีนเป็นการพนันชนิดหนึ่งที่อาศัยจังหวะ พวกเขาเป็นที่นิยมจากทั้งยังนักการพนันมืออาชีพแล้วก็นักเสี่ยงดวง สล็อตมักจะเล่นด้วยเหรียญหรือโทเค็นที่ทิ่มเข้าไปในเครื่อง หลังจากนั้นผู้เล่นจะเลือกจำนวนเงินพนันและก็กดปุ่มหมุนเกมนี้เล่นบนหน้าจอหลายชุดที่แสดงเครื่องหมายต่างๆผู้เล่นต้องจับคู่สัญลักษณ์เพื่อที่จะชนะเหรียญ ถ้าผู้เล่นจับคู่สามเครื่องหมายติดต่อกัน พวกเขาจะชนะโบนัส มีสล็อตหลายจำพวกซึ่งสามารถพบได้ในคาสิโน
What’s up to every one, it’s actually a pleasant for me to visit this web
page, it includes valuable Information.
Article writing is also a excitement, if you
be familiar with then you can write otherwise it is complex to write.
I got this web site from my friend who shared with me concerning this website and at the moment this
time I am browsing this website and reading very informative articles or reviews here.
Thank you, I have recently been looking for information about this subject for ages and yours is the best I’ve discovered so far.
However, what concerning the conclusion? Are you positive in regards
to the source?
I believe that is among the such a lot important info for
me. And i’m satisfied studying your article. However
wanna commentary on some basic issues, The web site taste is perfect, the articles is in reality
excellent : D. Good task, cheers
Review my website: august calendar
When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is
added I get several e-mails with the same comment.
Is there any way you can remove me from that service?
Cheers!
Its not my first time to visit this website, i am browsing this website dailly and obtain nice information from here all
the time.
payday loan
Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something.
I think that you could do with some pics to drive the message home a
little bit, but instead of that, this is wonderful blog. A
great read. I’ll certainly be back.
Hi, just wanted to mention, I enjoyed this post.
It was practical. Keep on posting!
Hi there friends, how is all, and what you wish for to say on the
topic of this piece of writing, in my view its
really amazing designed for me.
Sowie ihr noch zögerlich seid, könnt ihr (außerhalb eures Accounts) fast alles des weiteren mit Spielgeld antesten.
Feel free to visit my web-site :: Nine Casino online casino
erfahrungen (appstore.filenbar.com)
Very good post! We are linking to this great article
on our website. Keep up the good writing.
penis enlargement
After looking at a few of the blog articles on your site, I honestly appreciate your technique of writing a blog.
I bookmarked it to my bookmark website list and will be checking back soon. Please check out my website as well and let me know your opinion.
Online poker
Very nice article, totally what I wanted to find.
Fantastic submit, very informative. I wonder why the other experts of this sector don’t understand this.
You must proceed your writing. I am confident, you have a great readers’ base already!
Online poker
Wow! At last I got a webpage from where I know how to actually obtain useful facts regarding my study and knowledge.
Good day very nice blog!! Guy .. Beautiful .. Superb ..
I wipl bookmark your website and take the feeds also?
I am satisfied to seek out so many helpful information riht here within the put up, we’d like work out extra techniques
in this regard, thanks for sharing. . . . .
.
homepage
I аm sure this post hɑs touched аll tһe internet viewers, іtѕ
really realⅼy fastidious pwragraph ⲟn building
uρ new weblog.
Great article.
Platformun sunmuş olduğu oyun çeşitliliği, bahis
severlere özel olarak hazırlanan birtakım bilgilerle platform sadece bahis oynanan yer olmanın ötesine geçmiştir.
Also visit my web page 1xbet sorunsuz giriş
Many thanks very helpful. Will share website with my good friends.
link
Very great post. I simply stumbled upon your blog and wished to
mention that I have truly loved browsing your blog posts.
In any case I will be subscribing on your feed and I’m hoping you write again very soon!
I was suggested this blog by my cousin. I am not sure
whether this post is written by him as nobody else know such
detailed about my trouble. You’re amazing! Thanks!
I truly treasure your work, Great post.
Feel free to surf to myy web blog … VisiSharp
Hi there, I discovered your website by means of Google even as looking for a related
topic, your website got here up, it looks great. I’ve bookmarked it in my google
bookmarks.
Hello there, just changed into aware of your blog thru Google, and
located that it’s really informative. I’m going to watch out for brussels.
I’ll be grateful in the event you proceed this in future.
Lots of people shall be benefited out of your writing.
Cheers!
wonderful publish, very informative. I’m wondering why the other specialists of this sector do not notice this.
You must continue your writing. I am confident, you have a huge readers’ base already!