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”.
appreciate it a whole lot this fabulous website can be elegant in addition to simple
Good day! This is my first visit to your blog! We are
a team of volunteers and starting a new project in a community in the same niche.
Your blog provided us useful information to work on. You
have done a outstanding job!
Hmm is anyone else encountering problems with the pictures on this blog loading?
I’m trying to figure out if its a problem on my end or if it’s the
blog. Any suggestions would be greatly appreciated.
Hi there, this weekend is pleasant in support of me, since this occasion i am reading
this impressive educational piece of writing here at my house.
Awesome site you have here but I was wanting to know if you knew
of any community forums that cover the same topics talked about in this article?
I’d really like to be a part of group where I can get feed-back from
other experienced people that share the same interest.
If you have any suggestions, please let me know.
Many thanks!
What’s up i am kavin, its my first occasion to commenting anywhere, when i
read this piece of writing i thought i could also make comment due to this brilliant article.
If you are going for best contents like me, only
go to see this web site daily for the reason that it offers feature contents, thanks
Hi, i read your blog occasionally and i own a similar one and i
was just curious if you get a lot of spam responses? If so how do you stop it,
any plugin or anything you can recommend? I get
so much lately it’s driving me mad so any help is very much
appreciated.
Welcom to javslutmom.net Enjoy free JAV porn milf videos, movies on thecollection of lustful madam with lots of hot sex
scenes
You can find sex video japan your most favorite Japan Porn Stars here and enjoy their performing.
With a lot of milf japanese mom same as rin okae, yumi kazama hagi azusa kano ai tanaka nene…etc…
website that offers every sex fan popular jav
amateur, jav Uncensored, jav censored updated daily in HD quality with best jav
actrees. You can watch lots of different Japanese Asian pornand so much hot milf japanese sexualy is
waitting you enjoy
Have you ever considered writing an e-book or guest authoring on other websites?
I have a blog based on the same ideas you discuss and would really
like to have you share some stories/information. I know my visitors
would enjoy your work. If you’re even remotely interested, feel free to shoot
me an e-mail.
Very good blog! Do you have any tips and hints for aspiring
writers? I’m hoping to start my own website soon but I’m a little lost on everything.
Would you suggest starting with a free platform like WordPress or go for a paid option? There
are so many options out there that I’m completely overwhelmed ..
Any recommendations? Thanks!
This design is spectacular! You most certainly know how
to keep a reader entertained. Between your wit and your videos,
I was almost moved to start my own blog (well, almost…HaHa!) Excellent job.
I really enjoyed what you had to say, and more than that, how you presented it.
Too cool!
Excellent blog here! Also your web site loads up fast!
What web host are you using? Can I get your affiliate link to
your host? I wish my site loaded up as fast as yours lol
خرید آینه و میز کنسول جادویی
Hi mates, how is the whole thing, and what you desire to say about this post,
in my view its in fact remarkable for me.
Good write-up. I definitely love this site. Thanks!
What a data օf un-ambiguity аnd preserveness of valuable knowledge гegarding unpredicted emotions.
Ꭺlso visit mу page Túi xách nữ thời trang
Thanks for sharing your info. I truly appreciate your efforts
and I will be waiting for your further write ups thank you once
again.
Greetings from Ohio! I’m bored at work so I decided
to browse your blog on my iphone during lunch break.
I really like the information you provide here and can’t wait to take a look when I
get home. I’m surprised at how fast your blog loaded on my phone ..
I’m not even using WIFI, just 3G .. Anyhow, very good blog!
Good day! I know this is kinda off topic however , I’d
figured I’d ask. Would you be interested in exchanging links or
maybe guest writing a blog article or vice-versa?
My website addresses a lot of the same subjects as
yours and I feel we could greatly benefit from each other.
If you are interested feel free to send me an e-mail.
I look forward to hearing from you! Awesome blog by the
way!
Thank you for the auspicious writeup. It in fact was a amusement account it.
Look advanced to far added agreeable from you! By the way, how could we communicate?
Appreciate the recommendation. Let me try it out.
Hi there! I just want to offer you a big thumbs up for the great information you have right
here on this post. I’ll be coming back to your blog for more soon.
Choosing United Nations Approve The World Health Organisation’S Recommendation To Reschedule Cannabis Bеst Method To Consume CBD Ϝor Achieving Fast And
Best Ꮢesults
Hi, this weekend is good designed for me, because this time i am reading this great informative
paragraph here at my house.
Very nice post. I just stumbled upon your blog and wanted to say that I’ve truly enjoyed surfing around your blog posts.
Aftter all I will be subscribing to youur rss feed and I hope yyou write again very soon!
Wow, this article is nice, my sister is analyzing such things, therefore I am going to let know her.
I’m extremely impressed together with your writing abilities and also with the structure in your blog.
Is that this a paid theme or did you customize it yourself?
Anyway keep up the excellent high quality writing, it is rare to look a nice weblog
like this one today..
With havin so much content and articles do you evdr run into any problems of plagorism or copyright infringement?
My blog hhas a lot of unique cohtent I’ve eithewr created myself or outsourced
but it looks like a lot of it is popping it up all
over the intenet withoout my permission. Do you know any solutions to
help prevent content from being stolen? I’d certainly appreciate it.
Reviiew my website; the law of attraction
Hi, after reading this awesome post i am also glad to share my
familiarity here with mates.
An outstanding share! I’ve just forwarded this onto
a coworker who had been conducting a little research
on this. And he in fact ordered me lunch simply because I stumbled upon it for him…
lol. So let me reword this…. Thank YOU for the meal!!
But yeah, thanks for spending some time to talk about this subject here on your website.
These are in fact enormous ideas in about blogging.
You have touched some good points here. Any way keep up wrinting.
CBD Consuming Method – Which CBD Product Is Right For Me? Іs Ᏼetter Inhaling оr Ingesting
this is so good
this is so nice
this is great
We stumbled over here by a different web page and thought
I might check things out. I like what I see so now
i am following you. Look forward to checking out your web page yet
again.
Here’S What CBD Stands For In The Industry Is Difference Βetween CBD
Isollate ɑnd Full Spectrum CBD
Greetings! I’ve been reading your site for a while now and finally got the courage to go ahead
and give you a shout out from Dallas Texas! Just wanted to mention keep up the fantastic work!
Тaking CBD Products іn Announcing The Koi CBD Rewards Program! Right Dosage Cɑn Reduce Anxiety
Symptoms
A person necessarily help to make critically articles I might state.
This is the very first time I frequented your web page and thus
far? I surprised with the analysis you made
to make this particular submit amazing. Fantastic task!
Hello it’s me, I am also visiting this site daily, this web page is really fastidious and the visitors are
in fact sharing fastidious thoughts.
Hello There. I discovered your blog the use of msn. This is a really well
written article. I will make sure to bookmark it and come back to learn extra of your useful information. Thanks for the post.
I will definitely return.
my website – cash offer for my house
Thanks a bunch for sharing this with all folks you actually recognize what
you are speaking about! Bookmarked. Kindly also visit my web site =).
We may have a link trade agreement among us
I’ll right away grab your rss as I can’t find your e-mail subscription hyperlink or newsletter service.
Do you have any? Kindly permit me understand in order
that I could subscribe. Thanks.
If some one desires expert view regarding blogging then i advise him/her to pay a
visit this weblog, Keep up the pleasant job.
Online poker
For newest news you have to pay a quick visit web and on world-wide-web I found this
site as a most excellent web page for hottest updates.
Know AƄout Lip Eczema And How It Differs From CBD Ηow
to Soothe It
There’s certainly a lot to learn about this topic.
I like all of the points you made.