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”.
My developer is trying to persuade me to move to
.net from PHP. I have always disliked the idea because of the costs.
But he’s tryiong none the less. I’ve been using Movable-type
on a number of websites for about a year and am anxious about switching to another platform.
I have heard excellent things about blogengine.net. Is there a way I can transfer all my wordpress posts into it?
Any help would be really appreciated!
to see haima sampartyadak website you can click here
قطعات یدکی هایما
Every weekend i used to pay a visit this web page, as i want enjoyment, for the reason that this this web site conations truly pleasant funny stuff too.
Hi! I’m at work browsing your blog from my new iphone
3gs! Just wanted to say I love reading your blog and look forward to
all your posts! Carry on the outstanding work!
I could not refrain from commenting. Exceptionally well written!
I used to be suggested this web site byy my cousin. I’m not certaain whether oor
not tyis submit is written by way of him as nobody else know such specified approximately my problem.
You are incredible! Thank you!
my web page; best SMM Panel
I’m not sure exactly 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.
penis enlargement
What a information of un-ambiguity and preserveness of valuable
know-how about unpredicted emotions.
Just desire to say your article is as amazing. The clarity to your post is simply spectacular and i can assume you’re knowledgeable on this subject.
Fine along with your permission let me to seize your feed
to stay updated with coming near near post. Thank you one million and please carry on the
gratifying work.
Here is my web blog sell my house fast online quote
I go to see day-to-day some websites and blogs to read content, except this blog presents feature based content.
I read this pɑragraph fully concerning the
comparison ⲟf most recent and earlier technologies, it’s awesome article.
The best Anime website for Thai Dub and Thai Subtitles.
With tens of thiusands of Anime series and movies to choose
from!
การ์ตูนอนิเมะพากย์ไทย
I simply couldn’t go away your website prior to suggesting that I actually loved the standard information a person provide for your visitors?
Is gonna be again regularly to check out new posts
Hey just wanted to give you a quick heads up and let you know a few of the images aren’t loading properly.
I’m not sure why but I think its a linking issue. I’ve tried it in two
different internet browsers and both show
the same outcome.
My page :: Val
At this moment I am ready to do my breakfast, when having
my breakfast coming over again to read additional news.
I’m truly enjoying the design and layout of your website.
It’s a very easy on the eyes which makes it much more enjoyable for me to come here
and visit more often. Did you hire out a designer to create your theme?
Excellent work!
My web page http://www.msr.or.kr
Hello There. I found your blog using msn. This is an extremely well
written article. I’ll be sure to bookmark it and come back to read more of your useful info.
Thanks for the post. I will certainly return. https://www.provenexpert.com/hiergvuerh88964/?mode=preview
Online poker
Hey There. I discovered your weblog the usage of msn. That is
a very smartly written article. I will be sure to bookmark it and return to read extra
of your helpful information. Thank you for the post.
I will certainly comeback.
We’re a group of volunteers and opening a new scheme in our community.
Your site offered us with valuable information to work on. You’ve done
an impressive job and our entire community will
be thankful to you.
Asking questions are actually pleasant thing if you are not understanding anything fully, except this paragraph presents fastidious understanding even.
Heya i’m for the first time here. I came across this board and I find It truly useful & it helped me
out much. I hope to give something back and help
others like you helped me.
Hi there, i read your blog from time to time and i own a similar
one and i was just curious if you get a lot of spam feedback?
If so how do you reduce 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.
K69Decor là đơn vị có bề dày kinh nghiệm trong lĩnh
vực thiết kế và thi công nội thất.
Thành lập từ năm 2017, bàn tay và khối óc của đội ngũ K69Decor đã thiết kế và thi công hàng trăm
công trình và dự án ở Hồ Chí Minh và các tỉnh thành lân cận miền Nam.
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 construct my own blog and would like
to find out where u got this from. many thanks
This site was… how do you say it? Relevant!! Finally I’ve found something which
helped me. Thanks!
My page – А片
payday loan
Highly descriptive post, I enjoyed that bit. Will there be a part 2?
Also visit my homepage – Ltsci
you are truly a just right webmaster. The site loading pace is
amazing. It kind of feels that you are doing any
unique trick. In addition, The contents are masterpiece.
you have done a great process in this matter! disposable pod vape tank vendor devices suppliers
This paragraph provides clear idea in favor of the new users of blogging,
that in fact how to do blogging and site-building.
Pretty element of content. I simply stumbled upon your blog and in accession capital to say that
I get in fact loved account your blog posts. Anyway I’ll be subscribing
in your augment or even I success you access consistently fast.
When I originally left a comment I seem to have clicked
the -Notify me when new comments are added- checkbox and now every
time a comment is added I recieve 4 emails with the same comment.
Is there a means you are able to remove me from that service?
Thank you!
Outstanding quest there. What occurred after? Take care!
I was recommended this web site by my cousin. I am not
sure whether this post is written by him as no one else know such detailed about
my difficulty. You’re wonderful! Thanks!
ножничный подъемник для склада
[url=https://nozhnichnyye-podyemniki-dlya-sklada.ru]http://nozhnichnyye-podyemniki-dlya-sklada.ru/[/url]
Hey I know this is off topuc but I was wondering іf ʏoᥙ knsw off
aany widgets І couild aɗd tto my blog that automatically tweet mү newest twitter updates.
Ӏ’ve been lo᧐king for a plug-in likе this
fоr quite soe time and waѕ hoping mɑybe yoou ѡould һave
ѕome experience with something like this. Pleaѕe lеt me know іf you run into anything.
Ӏ tｒuly enjoy reading үour blog aand I look forward to youг new updates.
Ꮇy website; Túi xách nữ da mềm hàng hiệu
It is not my first time to go to see this website, i am visiting this web site dailly and
obtain nice facts from here daily.
I was suggested this blog by my cousin. I’m not sure whether this post is written by him as nobody else know
such detailed about my problem. You are wonderful! Thanks!
What a data of un-ambiguity and preserveness of precious experience regarding unpredicted feelings.
Thanks , I have just been searching for information approximately
this subject for ages and yours is the best I’ve came upon till now.
But, what concerning the conclusion? Are you sure about the source?
I think this is one of the most important info for me.
And i am glad reading your article. But should remark
on few general things, The web site style is ideal, the articles is really nice : D.
Good job, cheers
Awesome article.
Thank you for some other informative web site.
The place else may I am getting that kind of info written in such an ideal approach?
I have a undertaking that I’m just now running
on, and I’ve been at the glance out for such info. https://www.layitlow.com/members/dcdcdscv.746630/
I’m curious to find out what blog platform you are using?
I’m experiencing some small security issues with my latest website and I’d like to find something more safe.
Do you have any suggestions?
My page เครื่องย่อยขยะ
Hi there mates, its enormous paragraph concerning
teachingand complettely explained, keep it up all
the time.
Look into my bog post; Andy Frams’ website
These are in fact fantastic ideas in regarding blogging.
You have touched some pleasant things here. Any way keep up wrinting.
My site – Ens Kor
Keep on writing, great job!
I was suggested this web site by means of my cousin. I am now not
positive whether this publish is written through him as nobody else recognize
such particular approximately my trouble. You are incredible!
Thanks!
Its such as you learn my thoughts! You appear to know a lot about this,
like you wrote the book in it or something. I feel that you simply could do with some percent to drive the message house
a little bit, but other than that, that is magnificent blog.
A fantastic read. I will definitely be back. https://priti-nag.tribe.so/user/dcdcdscv