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”.
[url=http://medrol.works/]medrol tablet 16 mg[/url]
When I originally left a comment I seem to have clicked on the -Notify me when new comments are added- checkbox and
from now on each time a comment is added I recieve 4 emails with the same comment.
There has to be a means you are able to remove me from that service?
Appreciate it!
You really make it seem so easy with your presentation but I find this matter to be actually something that
I think I would never understand. It seems too complicated and extremely broad for me.
I am looking forward for your next post, I will
try to get the hang of it!
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 website owners and bloggers
made good content as you did, the internet will be much more useful than ever
before.
I know this if off topic but I’m looking into starting my own blog and was
curious 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% certain. Any recommendations
or advice would be greatly appreciated. Thanks
Take a look at my blog Malaysia award supplier
[url=http://cialiswtab.quest/]tadalafil online australia[/url]
What i do not understood is if truth be told how you are not actually much more neatly-favored than you might be now.
You’re very intelligent. You understand thus significantly on the subject of this subject, produced me in my
opinion consider it from numerous various angles.
Its like men and women don’t seem to be interested unless it’s something to do with Girl gaga!
Your personal stuffs outstanding. At all times handle it up!
Here is my web blog trophy supplier Malaysia
I’ve been surfing online greater than 3 hours these days,
but I never discovered any interesting article like yours.
It is beautiful value enough for me. In my opinion, if all web owners
and bloggers made good content as you probably did, the
net might be a lot more useful than ever before.
my web site – shop
Very good post. I certainly love this site. Thanks!
I love what you guys tend to be up too. Such clever work and
reporting! Keep up the very good works guys I’ve
included you guys to my own blogroll.
Thanks for any other magnificent article. The place else may anyone get that kind of
info in such a perfect method of writing? I have a presentation next week, and I’m on the search
for such information.
It’s an amazing piece of writing in favor of
all the web users; they will take advantage from it I am sure.
I visited various blogs however the audio quality
for audio songs existing at this site is truly marvelous.
This site truly has all of the information and facts I needed concerning
this subject and didn’t know who to ask.
Feel free to surf to my webpage – Award Shops
I was suggested this web site by my cousin. I’m not sure whether this post is written by him as nobody else know such detailed about my
problem. You’re incredible! Thanks!
Hello, i feel that i saw you visited my site so i
got here to return the favor?.I am trying to to find things
to improve my web site!I guess its good enough to use a few of your ideas!!
My site :: trophy supplier petaling jaya
Hello to all, it’s in fact a fastidious for me to pay
a quick visit this web page, it consists of valuable Information.
my webpage trophy supplier Malaysia
It’s really a great and useful piece of info. I’m
glad that you just shared this useful information with
us. Please keep us up to date like this.
Thank you for sharing.
Feel free to visit my web blog – trophy supplier Malaysia
Aw, this was an extremely good post. Finding the time and actual effort to generate a very good article…
but what can I say… I procrastinate a lot and don’t seem to get
nearly anything done.
Also visit my webpage :: d one laser
Great article.
Everything is very open with a really clear clarification of the challenges.
It was really informative. Your website is extremely
helpful. Thank you for sharing!
Here is my site :: trophy supplier Malaysia
It’s awesome to go to see this website and reading the views
of all friends about this article, while I am also keen of getting know-how.
my webpage award shops Sarawak
Hey there I am so grateful I found your blog page, I really found you by mistake,
while I was researching on Yahoo for something else, Anyways I am here now and would just like to say many thanks
for a incredible post and a all round entertaining blog (I also
love the theme/design), I don’t have time to look over it all at the minute but I have saved it and also
included your RSS feeds, so when I have time I will be back to read a great deal more, Please
do keep up the excellent b.
my blog post :: Transtar
I was able to find good info from your articles.
Wow, marvelous 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!
You should ship a 5-10 day welcome collection using automated emails.
How Do A very good Welcome Series Appear like? It’s like planting seeds to be able to harvest
later within the broadcast emails. If you want to supply much more worth to your audience,
you may offer a free book. Offer: When you have the
right offer for the precise audience, it’s a no-brainer for them to decide-in. After you’ve gotten written the topic line, you
can ship a test email to your self. There are a
number of things to check in order to reach working solo
advertisements. Have you learnt there is PRL content that you should buy and supply to anybody?
Your electronic mail listing can have a a lot increased engagement price, and end in a better conversion fee while you promote a suggestion.
When a person subscribes to your checklist, you must introduce yourself.
Every person on your e-mail record saw your content
material and voluntarily subscribed to your list.
With the PLR content material as a template, you can create a free report or
e book very quickly. It’s always the perfect advertising and marketing
technique to share some useful content or inspiring tales earlier than you ask someone to buy one thing from you.
Hello! Do you know if they make any plugins to protect against hackers?
I’m kinda paranoid about losing everything I’ve worked hard on. Any recommendations?
I am in fact happy to read this weblog posts which
contains plenty of useful data, thanks for providing these kinds of data.
Also visit my web site: construction induction card gold coast
[url=https://viagrahtabs.quest/]viagra on sale[/url]
With havin so much content do you ever run into any issues of plagorism or
copyright infringement? My website has a lot of unique content I’ve either created myself or outsourced but it appears a lot of it is popping
it up all over the web without my permission. Do you know any ways to help protect against content from being stolen? I’d genuinely
appreciate it.
No matter if some one searches for his essential thing,
so he/she needs to be available that in detail, therefore that thing is maintained
over here.
Excellent post. I was checking constantly this blog and I’m impressed!
Extremely useful information particularly the last part 🙂 I care for such information much.
I was looking for this certain information for a long time.
Thank you and best of luck.
Look into my web-site :: trophy supplier Malaysia (http://xsperks.com)
Thankfulness to my father who told me regarding this webpage, this website is really
remarkable.
my blog; award shops near me
Awesome post.
my webpage … D One Crystal
Whiplash is precipitated when your neck all of
a sudden turns, normally ensuing from a automobile crash, inflicting you severe pressure in your neck.
A neck injury will normally cause a superb portion of the spine to get ‘stuck’ out of
place, and solely somebody with chiropractic knowledge can put issues again in place without
inflicting further accidents and common discomfort.
When the neck is whipped from again to entrance
throughout a automotive accident, while enjoying contact
sports such as soccer, or often from an assault or different
bodily trauma, numerous things can happen to the spine and surrounding delicate tissue.
Art is a comfortable tissue treatment that focuses on eliminating the cause of ache moderately than alleviating signs.
You could be experiencing ache to various degrees, together with shooting pains,
stabbing pains, aching, throbbing, and even numbness.
Any new pains, added tension, or discomfort could be symptoms of an auto accident harm.
If you’re unsure that you have whiplash, don’t wait
to get checked out and let your harm progress; signs
can lie dormant for months with out you realizing that the slight
daily neck pain you’ve got was attributable to an auto injury that went untreated.
Migraines are brought on by a neurological disorder and may be reoccurring in your day-to-day life.
Hi friends, how is the whole thing, and what you would like to say concerning this
article, in my view its actually remarkable for me.
My website – trophy shop
Hi, this weekend is pleasant for me, since this moment i am reading
this impressive informative paragraph here at my house.
my web site … crystal
Normally I do not read post on blogs, but I would like to say that this write-up very compelled me to take a look at and do so!
Your writing style has been amazed me. Thank you, quite nice article.
Also visit my web-site: Award suppliers in Sabah
Nice post. I learn something new and challenging on sites I stumbleupon every day.
It will always be helpful to read through content from other
authors and practice a little something from their
websites.
We stumbled over here different website and thought I may as well
check things out. I like what I see so now i’m following you.
Look forward to looking over your web page again.
My homepage … no plat Sarawak terkini
Why visitors still make use of to read news papers when in this technological globe
everything is available on net?
my web-site – trophy supplier Malaysia
My brother recommended I would possibly like this blog.
He was once totally right. This put up truly made my day. You can not imagine
simply how much time I had spent for this information! Thank you!
my homepage: GogoTrophy
Excellent beat ! I wish to apprentice while you amend your website, how could i
subscribe for a blog web site? The account helped me a acceptable deal.
I had been a little bit acquainted of this your broadcast offered
bright clear concept
Feel free to surf to my page – Sabah award shops
This website really has all the info I wanted concerning this subject and didn’t know who to ask.
I am truly delighted to glance at this weblog posts which consists of plenty of
valuable facts, thanks for providing these data.
My homepage shop trophy
Howdy! This post couldn’t be written much better!
Looking through this post reminds me of my previous roommate!
He always kept talking about this. I am going to send this information to him.
Fairly certain he’s going to have a very good read.
Thank you for sharing!
Also visit my web site :: Bushnell Trophy laser Rangefinder Sarawak
It’s an awesome piece of writing for all the internet visitors; they
will obtain advantage from it I am sure.
My web-site :: price Of Trophy in Perak
You really make it seem so easy with your presentation but I find this topic
to be really something which I think I would never
understand. It seems too complex and very broad for me.
I’m looking forward for your next post, I will try to get the
hang of it!
Feel free to surf to my page :: trophy supplier Malaysia
I am regular reader, how are you everybody? This piece of writing posted at this website is really good.
Here is my blog post trophy supplier near me
Excellent post. I was checking constantly this blog and I’m
impressed! Extremely useful info specially the last part 🙂
I care for such info much. I was seeking this certain info for a very long time.
Thank you and good luck.
Also visit my webpage; trophy supplier Malaysia