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”.
[url=https://buyprednisolone.boutique/]prednisolone tablets 5mg price[/url]
You have made some decent points there. I looked on the internet for
additional information about the issue and found most individuals will go along with your views on this site.
If some one wishes to be updated with hottest technologies afterward
he must be visit this site and be up to date daily.
Currently it looks like Drupal is the best blogging platform available right now.
(from what I’ve read) Is that what you’re using on your blog?
Appreciate the recommendation. Will try it out.
I’m not sure why but this blog is loading very slow for
me. Is anyone else having this issue or is it a problem on my end?
I’ll check back later and see if the problem still exists.
I’ve been browsing online more than 2 hours today, yet I never
found any interesting article like yours. It’s pretty worth enough
for me. In my opinion, if all web owners and bloggers made
good content as you did, the web will be a lot more useful than ever before.|
I couldn’t refrain from commenting.
Exceptionally well written!|
I will right away seize your rss as I can’t to find your e-mail subscription hyperlink or e-newsletter service.
Do you’ve any? Kindly let me understand in order that I may just subscribe.
Thanks. |
It’s appropriate time to make some plans for the future and it is time to be happy.
I’ve read this post and if I could I wish to suggest you few interesting things or advice.
Maybe you could write next articles referring to this article.
I am really enjoying the theme/design of your site.
Do you ever run into any browser compatibility issues?
A number of my blog readers have complained about my blog not operating correctly in Explorer but looks
great in Opera. Do you have any solutions to help
fix this issue?
I believe this is one of the such a lot vital information for me.
And i am happy reading your article. However should commentary on few general things, The site style is perfect, the articles is actually
great : D. Just right activity, cheers
I pay a visit everyday some blogs and websites to
read posts, except this weblog gives quality based posts.
I all the time emailed this blog post page to all my associates,
for the reason that if like to read it then my contacts will too.
I need to to thank you for this wonderful read!! I certainly loved every little bit of it.
I have got you bookmarked to look at new things you post…
It is perfect time to make some plans for the longer term
and it’s time to be happy. I have read this put up and if I may just I wish to counsel you few interesting
things or advice. Maybe you could write next articles regarding this
article. I want to read even more things about it!
Do you mind if I quote a few of your articles as long as I provide
credit and sources back to your site? My blog is in the very same niche as yours and my visitors would certainly benefit from a
lot of the information you present here. Please let me know if this alright with you.
Many thanks!
Hello! I could have sworn I’ve visited this website before but after browsing
through a few of the posts I realized it’s new to me. Nonetheless, I’m certainly happy I came across it and I’ll
be book-marking it and checking back often!
Have you ever thought about writing an ebook or guest authoring on other sites?
I have a blog based on the same information you discuss and
would really like to have you share some stories/information. I know my subscribers would appreciate your work.
If you’re even remotely interested, feel free to send me an e mail.
Thank you for the good writeup. It in fact used to be a leisure account it.
Glance complicated to more added agreeable from you!
By the way, how can we be in contact?
Spot on with this write-up, I really feel this amazing site needs far more
attention. I’ll probably be back again to see more, thanks
for the advice!
Visit my web-site: best trophy supplier Malaysia (Andrea)
ทางเรา relxclubthailand.com ต้องขอบอกได้เลยว่า เป็นตัวแทนหลักอย่างเป็นทางการในไทย ที่ใหญ่ที่สุด และเป็นเจ้าเดียวกับ RELX THAILAND สินค้าทุกแบรนด์
ทุกรุ่น เราได้ทำการคัดสรร บุหรี่ไฟฟ้า ที่เป็นหนึ่งในนวัตกรรม ช่วยเลิกบุหรี่ ที่มีประสิทธิดีเยี่ยม และช่วยได้จริง มาให้ลูกค้าได้เลือกใช้ โดยสินค้าทุกชิ้นของเรา สั่งตรงจากโรงงาน
We have hundreds of buyer successes in quite a few industries, together with manufacturing,
distribution, meals production and distribution, life sciences,
and more.
to see suzukivitara website you can click here
سوزوکی ویتارا
penis enlargement
Despite not making the US Top 10, the album instantly earned her a sixth consecutive RIAA and CRIA Platinum-certified album.
I really like your blog.. very nice colors & theme.
Did you make this website yourself or did you hire someone to do it for
you? Plz reply as I’m looking to design my own blog and would like to know where u got this from.
thanks
Hi there friends, its impressive piece of writing concerning tutoringand fully explained, keep it up
all the time.
• Keep up to date with relevant product information, new
product developments and technology trends.
find best white card australia licence in below
white card australia
Betebet tarafından sunulan üyelik hizmetleri ücretli değildir.
Betebet sunduğu hiç bir üyelik hizmetinden ücret talep etmez.
Bundan dolayı hemen üyelik işlemlerine başlayabilir ve ardından avantajlı
bir dünya ile karşılaşabilirsiniz.
Besant Technologies presents 250+ IT training programs in additional than 20+ branches all over India with
10+ years of Experienced Expert stage Trainers.
I am really grateful to the holder of this site who has shared this wonderful post at at this place.
Good day! This is my 1st comment here so I just wanted to give a quick shout out and
tell you I really enjoy reading through your articles.
Can you suggest any other blogs/websites/forums that go over the same topics?
Many thanks!
Also visit my website – award shops near me
Hey I know this is off topic but I was wondering if you knew of
any widgets I could add to my blog that automatically tweet my newest twitter updates.
I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this.
Please let me know if you run into anything.
I truly enjoy reading your blog and I look forward to
your new updates.
Feel free to visit my page; etrophy
Simply desire to say your article is as astounding. The clearness on your post is just excellent and that i can think you’re a professional on this subject.
Well along with your permission allow me to clutch your RSS
feed to stay up to date with coming near near post. Thank you a million and please continue the
rewarding work.
Look into my site; imej trophy Malaysia cup
I got this site from my friend who told me about this site and now this time I am
visiting this web page and reading very informative articles or reviews at this time.
As between you and Cloud vLab, Content shall be the property
of you.
Hey! I just wanted to ask if you ever have any issues with hackers?
My last blog (wordpress) was hacked and I ended up losing several weeks of hard work due to no
backup. Do you have any solutions to stop hackers?
Hmm is anyone else experiencing problems with the pictures on this blog loading?
I’m trying to determine if its a problem on my end or if it’s the blog.
Any suggestions would be greatly appreciated.
It is considered one of thetopSAP Certificationsin whichcandidates learn about report processing,
source and pay course of, design, operation, and money processing.
Our honest try has been to include all of the information about these programs to learn SAP HANA in this information.
SAP HCM module is the apt software for the HR division of an organization.
Customisation in fact contents based on the students wants.
How to Buy CBD Cartridges – Check oսt Thiѕ Quick Guide
Feel free tо surf to my web site – Cannabis Panic: Controlled Substances Act
It’s difficult to find educated people about this subject, however, you sound
like you know what you’re talking about! Thanks
[url=https://prednisone.date/]deltasone over the counter[/url]
The Sage brand carries a premium and the product has been challenged by different products at a cheaper price level.
Hi there, I discovered your web site by means of Google even as
looking for a comparable topic, your site got here up, it looks good.
I’ve bookmarked it in my google bookmarks.
Hello there, just was alert to your weblog via
Google, and found that it’s really informative.
I am gonna be careful for brussels. I will appreciate if you happen to proceed this in future.
Numerous folks will be benefited out of your writing. Cheers!
Feel free to surf to my webpage – Trophy Medal Supplier Malaysia
I don’t even know how I finished up here, however I assumed this post was
great. I do not know who you might be however definitely you are going to a famous blogger
for those who are not already. Cheers!
Look into my webpage; trophy supplier Malaysia
I’m really enjoying the theme/design of your weblog. Do you ever run into any browser compatibility
problems? A few of my blog visitors have complained about my website not working
correctly in Explorer but looks great in Opera. Do you have
any tips to help fix this issue?
Feel free to visit my page – trophy supplier
Good way of explaining, and pleasant piece of writing to get data on the topic of my presentation topic, which i am going to
convey in college.
Take a look at my homepage :: crystal plaque
Wonderful goods from you, man. I’ve understand your stuff previous to and you are just
extremely wonderful. I really like what you have acquired here,
certainly like what you’re stating andd the way in which you say
it. You make it entertaining and you still care for tto keep it sensible.
I can’t wait to read farr more from you. This iis really a wonderful web site.
Casino online na prawdziwe pieniadze homepage kasyno bonus bez
obrotu