The 2020 CAMA and Beneficial Ownership in the Extractive Industry
Communications
September 3, 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”.
Excellent, what a webpage it is! This blog gives valuable data to us, keep it
up.
Hi there! I simply wish to offer you a huge thumbs up for the excellent information you have right here
on this post. I will be returning to your website for more soon.
Let me introduce mｙѕelf. I am Mike Myrthil, director of operations for Nutritiona Products International, ɑ global
brand management company based іn Bocaa Raton, Florida.
NPI workѕ witһ international and domestic health and wellness brand manufacturers ѡho aгe seeking tto enter tһе U.S.
market oг expand theіr sales in America. I recentⅼｙ came across your brand and would like to discuss how NPI can һelp you
expand your distribution reach in the United Stateѕ.
Ԝe provide expertise іn aⅼl areazs օf distribution:
• Turnkey/Ⲟne-stop solution
• Active accounts witth major U.Տ. distributors and retailers
• An executive team tһat hɑs held executive positions ѡith Walmart ɑnd Amazon,
the tѡo largest online ɑnd brick-and-mortar retailers in tthe U.Ⴝ.,
and Glanbia, thе wߋrld’s largest sports nurition company.
• Proven sales fоrce ᴡith public relations, branding, ɑnd marketing alⅼ under ᧐ne roof
• Focus оn new aand existing product lines
• Warehousing and logistics
NPI haas а long, successful track record ߋf taking brands t᧐ market
inn tһe United Stɑteѕ. We meet regularly ѡith buyers from larցe and
small retail chains iin thе country. NPI What Is The U.S. Hemp Authority And What Does It Mean For The CBD Industry?
уour fаst track tߋ thе retail market.
Ꮲlease confact mee directly s᧐ that wee can discuss үouг brand
further.
Кind Regarⅾs,
Mike,
Mike Myrthil
Director oof Operations
Nutritional Products International
101 Plaza Real Ѕ, Ste #224
Boca Raton, FL 33432
Office: 561-544-071
Mike.m@nutricompany.ⅽom
Thanks for sharing your info. I really appreciate your efforts and I will be waiting for your further post thank you once again.
my web blog – mattress outlet chicago
I know this if off topic but I’m looking into starting my own weblog and was wondering what all
is required to get setup? I’m assuming having a blog like yours
would cost a pretty penny? I’m not very internet savvy so I’m not 100% sure.
Any recommendations or advice would be greatly appreciated.
Cheers
Hello would you mind stating which blog platform you’re using?
I’m planning to start my own blog soon but I’m
having a tough time deciding between BlogEngine/Wordpress/B2evolution and Drupal.
The reason I ask is because your layout seems different then most blogs and I’m looking for something completely
unique. P.S My apologies for being off-topic
but I had to ask!
[url=http://mebendazole.site/]vermox drug[/url]
[url=http://triamterene.cfd/]triamterene-hctz 75-50 mg[/url] [url=http://albenza.icu/]albenza tab 200mg[/url] [url=http://seroquel.fun/]cheap seroquel[/url]
I was suggested this blog through my cousin. I am no longer
positive whether or not this put up is written through him as no
one else know such detailed about my problem. You’re wonderful!
Thanks!
Good article! We are linking to this particularly great article on our site.
Keep up the great writing.
Awesome article.
Many companies wаnt to launch new products in thе U.S.
but find it overwhelming and difficult to accomplish.
Αt Nutritionazl Products International, ɑ globl brand management ckmpany based іn Boca Raton, FL,
ᴡe takｅ on the heavy lifting fߋr thesae brands.
Іnstead of you hiring a sales ɑnd marketing staff, ցetting FDA label approval, ɑnd renting office annd warehouse space, NPI ρrovides ɑll these resources іn ɑ one-st᧐p, turnkey operation called thе “Evolution ⲟf Distribution.”
Essentially, NPI Ьecomes youｒ U.S. headquarters. Ԝe
import, distribute, аnd market yߋur products.
Our experience in the retail industry ɡives you а competiive advantage.
Аt NPI, you һave retail professionals ѡho haᴠe ԝorked
foor Amazon аnd Walmart, aas ԝell as represented product
manufacturers іn tthe nutraceutical, sports nutrition, dietary supplements, skincare, cosmeceutical, ɑnd beverage sectors.
NPI һas thе experience Cannabinoids Explained: What Are They And How Do They Affect The Body? knowledge too ѕuccessfully introduce ｙߋur products t᧐
American consumers. Тһis why I wоuld lіke to discuss һow we can expand youhr market penetration іn the U.Տ.
NPI iѕ youг padtner fоr suxcess in thｅ U.S.
For mоre infoгmation ⲟn how NPI ϲan hellp ｙou achieve үouг
goals, pⅼease reply to this email and makе sure
to copｙ me in MarkS@nutricompany.cоm.
Respectfully,
Mark
Mark Schaeffer
Senior Acount Executive fоr Business Development
Nutritional Products International
150 Palmetto Park Blvd., Suite 800
Boca Raton, FL 33432
Office: 561-544-071
Email: MarkS@nutricompany.ϲom
Very nice post. I just stumbled upon your weblog and wanted to say that I have truly enjoyed browsing your blog posts.
In any case I’ll be subscribing to your rss feed and I hope you write again soon!
Since the admin of this web site is working, no uncertainty very
quickly it will be famous, due to its feature contents.
Hey very nice blog!
Aw, this was a very good post. Spending some time and actual effort
to make a top notch article… but what can I say… I procrastinate a whole lot and don’t
manage to get anything done.
Hey very cool site!! Man .. Excellent .. Wonderful
.. I’ll bookmark your website and take the feeds also? I am happy to find numerous helpful
information here within the post, we want develop more strategies on this regard, thanks for sharing.
. . . . .
Highly energetic blog, I liked that a lot. Will there
be a part 2?
Sports betting. Bonus to the first deposit up to 500 euros.
online casino
I read this article completely concerning the comparison of newest and preceding technologies, it’s amazing article.
[url=https://ventolin.click/]can you buy ventolin over the counter australia[/url] [url=https://dutasteride.fun/]avodart 0.5 mg capsule[/url] [url=https://orlistat.fun/]xenical roche orlistat[/url] [url=https://tadacip.xyz/]tadacip paypal[/url]
It’s really very difficult in this full of activity life to listen news on Television, thus I only use web for that purpose, and get the
most up-to-date information.
[url=https://methocarbamol.site/]can you buy robaxin over the counter[/url]
[url=http://levofloxacin.site/]levaquin online[/url]
[url=http://hydrochlorothiazide.cfd/]hydrochlorothiazide 50 mg tablet[/url]
It’s going to be end of mine day, except before finish I am reading this enormous article to increase my know-how.
Very shortly this web site will be famous amid all blog people, due to it’s good articles
I do consider all the ideas you have offered on your post.
They’re really convincing and will definitely work. Still, the posts are too short for beginners.
Could you please prolong them a bit from subsequent
time? Thanks for the post.
hello!,I like your writing very much! percentage we keep up a correspondence more approximately your article on AOL?
I require an expert in this space to resolve my problem.
May be that’s you! Having a look ahead to look you.
I feel this is one of the such a lot vital
information for me. And i’m glad studying your article. But should observation on some normal issues, The
web site taste is perfect, the articles is in reality great
: D. Excellent job, cheers
[url=https://atomoxetine.sbs/]generic strattera cost[/url]
Everything composed was very reasonable. However, think about this, what if you wrote a catchier title?
I mean, I don’t want to tell you how to run your blog,
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 kinda boring.
You should peek at Yahoo’s front page and see how they create post titles to get people
to open the links. You might add a related video or a
related pic or two to grab readers excited about what you’ve written. Just my
opinion, it might make your posts a little livelier.
My brother recommended I might like this website. He was totally right.
This post truly made my day. You cann’t imagine simply
how much time I had spent for this info! Thanks!
Excellent site you have here.. It’s difficult to find high-quality writing like yours these days.
I seriously appreciate individuals like you! Take care!!
Thank you for the auspicious writeup. It in fact was a amusement account
it. Look advanced to more added agreeable from you!
However, how could we communicate?
This site definitely has all of the info I wanted about
this subject and didn’t know who to ask.
of course like your web-site but you need to take a look at the spelling on several
of your posts. Many of them are rife with spelling problems and I
to find it very bothersome to inform the truth however I will
certainly come again again.
The other day, while I was at work, my cousin stole
my apple ipad and tested to see if it can survive a 25 foot drop, just so she can be a youtube sensation.
My iPad is now destroyed and she has 83 views. I
know this is entirely off topic but I had to share it with someone!
Link exchange is nothing else except it is just placing the other person’s web
site link on your page at proper place and other person will
also do similar for you.
Here is my blog ซื้อหวยออนไลน์
Great article, totally what I wanted to find.
I’ve been surfing on-line greater than three hours nowadays,
but I by no means found any attention-grabbing article like yours.
It’s beautiful worth enough for me. In my view,
if all web owners and bloggers made just right content as you probably did, the net will be much more helpful than ever before.
Also visit my page … buy hcg injections
At this time it sounds like Drupal is the best blogging platform out there right now.
(from what I’ve read) Is that what you are using on your blog?
Wow, superb weblog layout! How lengthy have you been running a blog for?
you made blogging glance easy. The full
glance of your web site is magnificent, as neatly as the content!
What’s up i am kavin, its my first time to commenting anywhere,
when i read this post i thought i could also create comment due to this brilliant article.
I will right away take hold of your rss as I
can’t find your e-mail subscription link or e-newsletter service.
Do you have any? Please permit me recognize in order that I may subscribe.
Thanks.
[url=https://diflucan.xyz/]ordering difflucan[/url]
[url=http://zanaflex.site/]tizanidine tab 2mg[/url]
I’ll immediately seize your rss as I can’t find
your email subscription link or newsletter service.
Do you have any? Please allow me know so that I may subscribe.
Thanks.
It’s actually a great and helpful piece of information.
I am happy that you shared this useful information with us.
Please stay us informed like this. Thanks for sharing.
I really like what you guys are usually up too. Such clever work and coverage!
Keep up the terrific works guys I’ve incorporated you guys
to my own blogroll.