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”.
Wonderful blog! I found it while browsing on Yahoo News.
Do you have any tips on how to get listed in Yahoo News?
I’ve been trying for a while but I never seem to get
there! Cheers
Hello, for all time i used to check weblog posts here early in the
morning, because i love to learn more and more.
What’s up, I wish for to subscribe for this weblog to get most recent updates, therefore where can i do it please
help.
Thanks for finally writing about > The 2020 CAMA and Beneficial Ownership in the
Extractive Industry < Loved it!
Paragraph writing is also a excitement, if you know afterward you can write otherwise it is difficult to write.
It is in reality a great and helpful piece of info. I’m happy that you just shared this helpful information with us.
Please stay us up to date like this. Thanks for sharing.
This is essentially the food plan that I’ve fed
my canine, though once they have been younger and that i didn’t know
any higher, I used to provide them a handful of economic dry dog food as their breakfast meal,
with the largely raw bones and.
Hello, Neat post. There is a problem together with your website in web explorer, may test this?
IE nonetheless is the market leader and a good portion of
other folks will miss your magnificent writing due
to this problem.
Hello to every body, it’s my first pay a quick visit off this blog;
this webpage consists of awesome aand truly good data designed for visitors.
Safe CBD Dosawge Guidelines ɑnd Tips
Feel free to surf tߋ my web рage; The First Delta 8 Royal Jam Concentrate Hits The Market
Why people still make use of to read news papers when in this technological globe all is accessible on net?
Also visit my website :: Pro Max Keto Gummies Review
CBD Topicals | Order CBD Creams
Products Wholesaler -Ꭺ Chhance to Build Your Own Business
ɑnd Be Your Boss
Every weekend i used to visit this web page, as i wish for enjoyment, as this this web site conations genuinely good
funny information too.
The games have in common that there are always two cards dealt
to each the Player and the Banker.
Feel free to surf to my website; Baccarat rouge 540
Sprouts Farmers Market To Carry Nuleaf Naturals CBD Oil In All 31 Colorado Locations foｒ Sciatica – Іs
іt Helpful?
I have read some excellent stuff here. Definitely worth bookmarking for revisiting.
I surprise how much attempt you place to create such a great informative website.
I think everything said made a lot of sense. But, what about this?
what if you typed a catchier title? I am not saying your content is not good., but suppose you added a post title that
makes people want more? I mean The 2020 CAMA and
Beneficial Ownership in the Extractive Industry is
a little vanilla. You should glance at Yahoo’s front page
and see how they create post titles to get viewers to click.
You might add a video or a picture or two to get people excited
about everything’ve got to say. In my opinion, it would make your posts a little
livelier.
I’m now nott sure the pllace you’re getting your info,
however great topic. I needs to spend a whilee learning more or understanding more.
Thank you for fantastic info I was in seawrch of this information for myy mission.
webpage
Heya just wanted to give you a brief heads up and let you know a few of
the images aren’t loading correctly. I’m not sure why but I think its a linking
issue. I’ve tried it in two different browsers and both show the same results.
The Division of Professional Licensure regulates over 167 trades and professions in Massachusetts.
I absolutely love your website.. Excellent colors & theme.
Did you develop this website yourself? Please reply back as I’m hoping to
create my own blog and want to know where you got this from or what the theme is called.
Thanks!
Istanagame Merupakan salah satu situs judi slot deposit pulsa yang terpercaya yang
telah dinobatkan sebagai situs Slot Deposit Pulsa terbaik,
anda bisa memainkan bonus slot pulsa ini di seluruh permainan game
slot, bonus new member ini langsung diberikan dan hanya bisa anda dapatkan di Slot Deposit Pulsa Istanagame.
Anda tidak perlu khawatir, untuk mendaftar di situs Slot
Deposit Pulsa Tanpa Potongan ini, karena untuk mendaftar di
situs Slot Deposit Pulsa paling hoki ini sangatlah mudah, bagi pengguna baru tentunya akan mendapatkan keuntungan berupa bonus slot paling hoki.
Salah satu keuntungan utama yang anda dapatkan menjadi member situs link Slot Deposit Pulsa Istanagame adalah
bonus dan promo menarik setiap harinya.
Hey! Do you use Twitter? I’d like to follow you if that would be
okay. I’m definitely enjoying your blog and look forward
to new posts.
Marvelous, what a website it is! This web site gives helpful information to us, keep it up.
For latest news you have to pay a quick visit world wide web and on the web I found this web
site as a most excellent website for hottest updates.
penis enlargement
Great post. I used to be checking constantly this blog
and I’m inspired! Extremely useful information specifically the last part
🙂 I maintain such info a lot. I used to be seeking this particular info for a very lengthy time.
Thanks and good luck.
Magnificent goods from you, man. I’ve understand your stuff previous to and you’re just extremely excellent.
I actually like what you have acquired here, certainly like what you’re stating and the way in which
you say it. You make it enjoyable and you still take care of to keep it sensible.
I can’t wait to read much more from you.
This is really a great website.
I was recommended this web site by meanhs oof my cousin. I’m no longer certain whether
this publish is written vvia him as no one else know such unique approximately my difficulty.
You’re amazing! Thank you!
I know this if off topic but I’m looking into starting
my own blog and was wondering what all is needed to get set
up? I’m assuming having a blog like yours would cost a pretty penny?
I’m not very web savvy so I’m not 100% positive.
Any suggestions or advice would be greatly appreciated.
Appreciate it
Wow, incredible blog layout! How long have you been blogging for?
you make blogging look easy. The overall look of your web site is great, as well as the
content!
I’ve been exploring for a little for any high-quality articles or weblog posts on this kind of
house . Exploring in Yahoo I eventually stumbled upon this
web site. Reading this info So i am glad to show that I have an incredibly excellent uncanny feeling I
came upon just what I needed. I such a lot certainly will make
sure to do not put out of your mind this site and give it a look regularly.
Right away I am ready to do my breakfast, when having my breakfast
coming again to read additional news.
Here is my site … buy hcg
Thanks for sharing your thoughts. I truly appreciate your
efforts and I am waiting for your next post thanks once again.
my homepage; สาระความรู้
Woah! I’m really digging the template/theme of this website.
It’s simple, yet effective. A lot of times it’s very hard to get that “perfect balance” between usability and
visual appeal. I must say that you’ve done a amazing job with this.
Additionally, the blog loads very fast for me on Chrome.
Superb Blog!
Hi there, I want to subscribe for this blog to
take newest updates, so where can i do it please help.
Feel free to surf to my blog post – เครื่องกำจัดขยะ
Is It Possіble for CBD And Melatonin For Sleep: Which One Should I Choose? To Help in Muscle Growth?
fantastic points altogether, you simply received a new reader.
What may you suggest about your submit that you made some days
ago? Any positive?
Review my web page – HentaiStream
At this time I am going to do my breakfast, afterward
having
my breakfast coming yet again to read other news.
Thanks for a marvelous posting! I truly enjoyed rerading it, you might be
a great author. I will remember to bookmark your blog andd
will often come bak down the road. I want to encourage you to continue
your great job, have a niice morning!
Also visit my web-site: wealth manifestation (Karl)
If some one wants to be updated with hottest technologies after that
he must be go to see this web site and be up to date all the time.
Hmm is anyone else experiencing problems with the images 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.
Do you have any video of that? I’d love to find
out some additional information.
This web site definitely has all of the information I wanted concerning
this subject and didn’t know who to ask.
hey there and thank you for your info – I have
definitely picked up something new from right here.
I did however expertise several technical issues using this website,
since 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 host is OK?
Not that I’m complaining, but slow loading instances times
will sometimes affect your placement in google and can damage your high-quality score if ads and
marketing with Adwords. Anyway I’m adding this RSS
to my email and could look out for a lot more of your respective fascinating content.
Make sure you update this again very soon.
It is the best time to make some plans for
the future and it’s time to be happy. I’ve read this post and if I could I want to suggest you some
interesting things or suggestions. Perhaps you
can write next articles referring to this article. I desire to read even more things about it!
Hey, I think your site might be having browser compatibility issues.
When I look at your website in Ie, it looks fine but
when opening in Internet Explorer, it has some overlapping.
I just wanted to give you a quick heads up! Other then that, very good blog!
Piece of writing writing is also a fun, if you be familiar with afterward you can write otherwise it is complicated to
write.
Have you ever considered creating an e-book or guest authoring
on other websites? I have a blog based on the same topics you discuss and would really
like to have you share some stories/information. I know my
audience would appreciate your work. If you’re even remotely
interested, feel free to shoot me an email.
A Patient’ѕ Guide to Trigeminal Neuropathies
ᒪook into my webpage :: Top 5 Myths About Menopause We Should Stop Believing