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ANALYSIS OF THE SB 384 

ANALYSIS OF THE SB 384 

SB 384: Companies and Allied Matters Act 1990 CAP C20 LFN 2004 (Amendment) Bill, 2017. Sponsored by Sen. Ovie Omo-Agege

 SUMMARY

Bill type: Senate Bill

Sponsored by: Sen. Ovie Omo-Agege

Explanatory memorandum: The Bill seeks to amend laws of the Federation of Nigeria 2004 and for the establishment of state Corporate Affairs Commission for registration of business names.

First Reading: 24/11/2016

Second Reading: 01/03/2017

Committee Referred To: Trade and Investment

Consolidated with: Consolidated with SB 355

Third Reading: 15/05/2018

Bill Status: Passed (Awaiting Presidential Assent)

 OVERVIEW

On Tuesday 15 May 2018, the Senate of the Federal Republic of Nigeria passed the Companies and Allied Matters Act, 1990 (CAP C20, LFN 2004) Repeal and Re-enactment Bill, 2018 (“the Bill”), following a recommendation of the Senate Committee on Trade and Investment (The Committee). The Bill consolidates the proposed amendments from two related bills: Companies and Allied Matters Act CAP C20 LFN 2004 (Amendment) Bill, 2016 and the Companies and Allied Matters Act CAP C20 LFN 2004 (Amendment) Bill, 2017.

The Bill has 860 sections which is an additional 247 sections to the Current CAMA with 613 sections and seeks to establish an efficient means of regulating businesses, minimize the compliance burden of small and medium enterprises (SMEs), improve transparency and accountability, enhance shareholder engagement and promote a friendly business climate in Nigeria.

 SECTIONAL ANALYSIS

  1. 8.3 of the Bill provides for e-incorporation to facilitate the automated reservation of business names which will result in a significant improvement in turnaround time for potential promoters of companies in Nigeria and improve the ease of registering new businesses. Other automated processes are provided for in Sections 176 and 177 which refer to electronic instruments for the transfer of shares. Section 182 also provides for a Certificate of transfer to include a certificate issued in electronic form.

By virtue of Section 18 (2) of the Bill, one person may form and incorporate a private company by complying with the requirements of the proposed CAMA in respect of private companies thus reducing entry barriers for SMEs. This provides a competitive Nigerian business regulatory environment that is consistent with other jurisdictions.

The Bill also seeks to discard Section 26 (5) of the CAMA which provides that “The memorandum of a company limited by guarantee shall not be registered without authority of the Attorney-General of the Federation”. This will materially reduce the timeline for the registration of companies limited by guarantee (LTD/GTEs).

S.120 of the Bill on provides for persons who hold nominal interest in a company on behalf of another, to disclose those beneficial interests.  Also any shareholder (other than the beneficial owner) who holds shares entitling him to 5% voting rights in company should provide particulars of the beneficial owner to the company within 7 days. The beneficial owner should also disclose whether persons interested in the same shares are parties to any agreement or arrangement relating to the exercise of any rights conferred by the holding of the shares. Upon this disclosure, the company is to, within 7 days, inscribe against the name of every member in the register of members the information received and at the filing of its next annual return, notify the Commission of that information. By implication if the company defaults, the company and every officer of the company shall be liable to such fines as the Commission may prescribe by regulation for every day during which the default continues.

  1. 131 to 133 of the Bill enables companies to reduce share capital without the need for a court order, while S.148 prohibits the issuance of irredeemable shares and S.175 expressly prohibits Bearer shares.

The Bill provides exemptions to small companies including the removal of mandatory requirement to hold Annual General Meetings –S. 238(1); not having to hold the AGMs in Nigeria and the option of holding them electronically- S.241 (2); reducing the regulatory burden of having a Company Secretary –S. 329 (1); removing the requirement for a company to have at least 2 directors and allows for single directorship for small companies S.272.

  1. 404 of the Bill prohibits improper influence on conduct of audit of the financial statements of that company for the purpose of rendering such financial statements misleading by imposing a penalty to be specified by the Commission in its regulations, thus enforcing transparency in auditing processes.

The Bill provides a redress mechanism through S. 843 which seeks the Establishment of the Administrative Proceedings Committee (“APC”). The main function of the APC is to provide the opportunity of being heard for persons alleged to have contravened the provisions of the proposed Act or regulations made thereunder; resolve disputes or grievances arising from the operations of this Act or its regulations; and impose administrative penalties for contravention of the provisions of this Act or its regulations in the settlement of matters before it.

The Bill makes provisions for Business Rescue Proceedings which is targeted at rehabilitating financially distressed companies. These provisions seek to create an effective insolvency regime in Nigeria and has a dual aim: to save viable businesses, and to ensure that non-viable businesses can quickly exit the market, allowing deployment of assets to more productive firms.

Pros

On beneficial ownership, the amendments are targeted to increase transparency and combat asset shielding and are particularly significant, since they may mandate the disclosure of beneficial interests in a company where such are held through nominal holders or in trust. The Bill by seeking the establishment of a BO register, conforms to the Financial Action Task Force (FATF) international standards, particularly Recommendations 24 and 25 which emphasize the need for countries to prioritize for redress risks associated with obscurity of ultimate beneficiaries of corporate entities; as well as fulfils the commitments of the President at the 2016 London Anti-Corruption Summit convened by the UK Government and the Open Government Partnership Initiative.

The Bill complements the key objective of the Presidential Enabling Business Environment Council in building an enabling business environment by attempting to address the extant difficulties faced by businesses (administrative bottlenecks, high compliance costs etc.) which will lead to a significant improvement in the country’s Ease of Doing Business rankings.

On the whole, the Bill promises to improve revenue mobilization by the government as business entities can now be more efficiently regulated.

 

Cons

In a bid to reduce compliance requirements for small companies, the provisions for exemption from independent statutory audits may create an avenue for unsavory practices particularly for companies that may have gap years in their financial history. Hopefully, the harmonized Bill will have safeguards in place to enable users of financial statements other than shareholders have access to relevant financial information of a company that apparently does not do business in a particular year[1].

With respect to financial assistance, The Bill included provisions permitting private companies to provide financial assistance for acquisition of its own shares upon meeting certain conditions.  These conditions include, non-reduction of net assets, or where reduced, such assistance should be financed out of distributable profits.  A special resolution of the shareholders and a declaration of the directors in a form to be prescribed by the CAC are also required to accompany such transaction. These provisions may be deemed aggressive and the harmonized version should include safeguards to ensure that minority shareholders and creditors are not shortchanged by aggressive structuring of transactions on the basis of the removal of this prohibition.  Most common law countries retain some kind of safety net in this respect, especially for private companies.

 

CONCLUSION

It is expected that the new Bill when enacted will ease the rigors of doing business in Nigeria thereby making investing in the country an attractive prospect to investors. This will have the effect of improving and strengthening the nation’s economy as the projected influx of new businesses will help it thrive and grow in bounds.

With the need to incorporate regulatory conditions which are modeled around international best practice, the Bill will indeed promote long-term investments and ensure that the Nigerian system of company law and corporate governance would be favorable to the emerging Nigeria.

Given its current status, the Bill should be assented to or rejected by the President, to allow its urgent re-introduction by the National Assembly. In the meantime, stand-alone frameworks like efforts by the Nigerian Extractive Industries Transparency Initiative (NEITI) and the Corporate Affairs Commission to establish registers for Beneficial ownership information in the oil and gas industry and the corporate sector, respectively, will serve as stop-gap measures to provide temporary succor to our bleeding economy.

By: Muna Ugochukwu

Reference

[1] https://home.kpmg/ng/en/home/insights/2018/11/Key-highlights-of-the-Companies-and-Allied-Matters-Act-Bill-2018.html

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CAMA, 2020: Corporate Accountability and Transparency

A Summary Review of the Companies and Allied Matters Act, 2020

Background

While legitimate corporate businesses have an integral role in national development, the involvement of Politically Exposed Persons (PEPs) who conceal corruptly acquired wealth through the complex networks of companies deliberately created to hide their identities has further increased the risks they pose to non-fortified economies. In 2019, the former Executive Chairman of the Federal Inland Revenue Service, Mr Tunde Fowler, said that Nigeria loses about $15bn (N5.37tn at N358/dollar) to tax evasion annually.

It is to this end that the imperative to establish a Beneficial Ownership (BO) register as contextualized in its contemporary form by the Financial Action Task Force (FATF) which stresses the establishment of a publicly accessible central register for warehousing personal information of natural persons that own, control and benefit from corporate entities, was predicated.

The Nigerian government had expressed its commitment to this end at the London Anti-Corruption Summit in May 2016 to strengthen anti-corruption reforms, one of which was the Companies and Allied Matters Act (CAMA) Bill, which contained explicit provisions for the establishment and functioning of the Beneficial Ownership (BO) Registry.

Overview

The bill which had been signed by both legislative Houses of the 8th and 9th Assemblies, was finally granted assent by the President on Friday the 7th of August, 2020. The CAMA repeals and replaces the extant Companies and Allied Matters Act, 1990 and has been touted as the most significant business legislation in the last three decades, particularly as it introduces several corporate legal innovations aimed at enhancing ease of doing business in the country.

While the innovations to ease business have been reviewed quite exhaustively, the legislative document has not received its due credit on its key contributory role to corporate accountability and private sector governance, which it owes largely to the transparency clause requiring the disclosure of persons with significant control of companies in a register of beneficial owners. By extension, this provision which portends the efficient regulation of business entities, complements efforts towards greatly improving domestic resource revenue in its potential to address the curbing of illicit financial outflows, which costs the country around 17 billion US dollars ($17bn), annually to Nigerian and international companies operating within the Nigerian jurisdiction.

Prior to the Presidential assent, the issues around digitalization and funding of the register have been largely addressed by the CAC in conjunction with the OGP secretariat and the World Bank, through a multi-donor grant for the development of an electronic register and documentation and there are presently:

  • Ongoing upgrades of IT infrastructure to accommodate register with an in-house committee already set up to design a workflow.
  • Ongoing engagements with relevant stakeholders to enlighten them on the benefits of the disclosure regime in line with the OGP commitments.
  • Adoption of UK principles of disclosure, with the national threshold for disclosure set at 5% as opposed to the UK’s 25%.

Way forward

It is however worthy to note that this tool- the BO register, is not an end in itself but a means to an end as the law is not enough to guarantee compliance. To this end, three key endeavours are required, viz:

Inclusion

There needs to be inclusion by engaging key stakeholders and emphasizing gains and by providing ease of compliance. The integration process commenced two years ago by the Open Government Partnership in Nigeria, between the Corporate Affairs Commission (CAC) and Anti-corruption Agencies (ACAs), Bureau of Public Procurement (BPP), organized private sector (OPS) and other open contract and procurement-saddled institutions, somewhat guarantees the sustenance of the commitment. Also, while a large section of the organized private sector (OPS) is in support of this transparency and accountability drive, others have raised cogent concerns over information rights for public disclosure posing security concerns. This can however be addressed in process implementation by regulators (CAC) who have guaranteed secure accessibility to certain information.

Value re-orientation

The realization that both the government and the private sector must contribute their quota towards building Nigeria’s economy and drive development is now mainstream and progressive governments globally are designing policies and roadmaps to this end. It is necessary to note that the register will provide both checks and benefits to companies and the mentality that its establishment will benefit the country to the detriment of the OPS and multi-national enterprises (MNEs) should be eschewed. A true ecosystem of open governance must include open collaborative processes and it is imperative that even without a law, private sector operators like the OPS and CSOs should impose on their corporate governance structures, the principles, processes and values that make disclosure a default action and advocacy must be sustained for the paradigm shift for self-regulation by the OPS and CSOs to this effect.

Verification

With the establishment of the register, there is a new challenge as existing rules emphasize the need for accurate, reliable and up-to-date beneficial ownership information. According to a 2018 study on how well G20 and guest countries are implementing the G20 High Level Principles on Beneficial Ownership, no governments that collect beneficial ownership information, verify it[1]. However, a paper published by the Tax Justice Network (TJN) proposed a way of checking the validity of data provided: an information technology system combined with advanced analytics to identify red flags.

The verification process involves ensuring that people in the official register are who they say they are (authentication), that those persons have agreed to be involved in a legal entity (authorization), and that all the registered data is valid (for example, the address exists and the purpose of the company is accurate). It also involves checks after the legal entity is set up to ensure information is up-to-date and to identify potential red flags. It proposes a verification process that is fully automated information technology system with human supervision with access to relevant data, held by national and foreign authorities for cross-checking and advanced analysis.

The process could be managed by the beneficial ownership or company register, or another public body that has experience with data analytics, such as financial intelligence units or tax authorities and the responsible body needs to be adequately resourced and empowered to conduct such checks.

Adapted from “Beneficial ownership verification: ensuring the truthfulness and accuracy of registered ownership information”, Tax Justice Network and that all the registered data is valid (for example, the address exists and the purpose of the company is accurate). It also involves checks after the legal entity is set up to ensure information is up-to-date and to identify potential red flags. It proposes a verification process that is fully automated information technology system with human supervision with access to relevant data, held by national and foreign authorities for cross-checking and advanced analysis.

The process could be managed by the beneficial ownership or company register, or another public body that has experience with data analytics, such as financial intelligence units or tax authorities and the responsible body needs to be adequately resourced and empowered to conduct such checks.

Adapted from “Beneficial ownership verification: ensuring the truthfulness and accuracy of registered ownership information”, Tax Justice Network

Reference

[1] https://voices.transparency.org/verifying-the-beneficial-owner-of-companies-why-and-how-d6e24bd9f99f

By Munachi Ugochuku

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2019 CORRUPTION PERCEPTION INDEX

2019 CORRUPTION PERCEPTION INDEX: WHAT TO EXPECT
The Corruption Perception Index (CPI) has been published annually since 1995 by Transparency International.

Civil Society Legislative Advocacy (CISLAC), the National Chapter of TI in Nigeria, will be publishing the 2019 CPI on the 23rd of January, 2020.

The CPI scores countries from 100 (long term economic growth and GDP increase, very clean) to 0 (high perceived rate of corruption, highly corrupt) and ranks countries based on their public sector corruption analyzed by experts and opinions by the general public with the major aim of stopping bribery and every form of public corruption. Countries are ranked by position relative to other countries in the index.

Through the course of Nigeria’s corruption perception assessment since 2012, the country has averaged a score of 26.7 with its highest score at 28 in 2016 and lowest at 25 in 2013. Despite moving up four places from 148 in 2017 to 144 in 2018, there was no actual change in the scores for both years, which stood at 27. In the 2018 CPI, Nigeria scored 27 out of 100 points, maintaining the same score as in the 2017 CPI, indicating that Nigeria was still perceived as highly corrupt, and although the ranking showed that Nigeria moved up four (4) places, it only meant that four other countries scored worse while Nigeria stagnated.

The result also indicated a link between corruption and the health of democracies, where countries with higher rates of corruption also have weaker democratic institutions and political rights.
The CPI serves as an indicator for assessing President Buhari’s performance in fulfilling his 2015 anti-corruption flagship agenda.
It remains to be seen if Nigeria has improved or worsened.

It would be of immense benefit to public institutions, the government and Nigerian citizens as a whole, to look at the problems indicated on the CPI and follow the recommendations mapped out to ensure that corruption in the public sector is mitigated.

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What a difference two years makes: progress since the 2016 Anti-Corruption Summit

 

Each year governments make anti-corruption commitments at various international conferences and summits. Every summit is different, but afterwards we all grapple with the same problem: how to make sure commitments stick?

Two years ago, 43 governments made over 600 anti-corruption commitments at the 2016 Anti-Corruption Summit in London. At the time, Transparency International welcomed governments’ aspirations to undertake bigger and bolder reforms, but we were also keenly aware that the enthusiasm and political will for reform could quickly be lost.

In order to keep the pressure on countries to stick to their commitments, Transparency International UK launched the Anti-Corruption Pledge Tracker in September 2017. This innovative tool compiles in-country assessments by civil society, looking at how countries have delivered on the pledges made at the 2016 summit. The initial findings published last September were encouraging but showed that there was much more to be done.

This time we have narrowed our focus, allowing us to dive into the implementation of specific commitments. Whereas in 2017 we looked at 27 countries plus international organisations, this time we are tracking progress across 116 commitments by 16 countries in six areas: asset recovery, beneficial ownership transparency, law enforcement, open data, public procurement and protection for whistle-blowers or space for civil society.

Read More

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NIGERIA COUNTRY CARD- Global Corruption Barometer Africa 2019: Citizen’s Views and Experiences of Corruption

The Global Corruption Barometer (GCB) – Africa, published by Transparency International in partnership with Afrobarometer, presents the largest, most detailed set of public opinion data on citizens’ views on corruption and direct experiences of bribery in Africa. Based on fieldwork conducted in 34 countries between 2016 and 2018 by Afrobarometer, as well as a survey conducted by Omega Research, the GCB incorporates the views of more than 47,000 citizens in 35 countries across Africa.

 

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Text of the Executive Director of CISLAC at the Press Conference on Beneficial Ownership Register in Nigeria

TEXT OF A PRESS CONFERENCE ON BENEFICIAL OWNERSHIP REGISTER IN NIGERIA

1st of July, 2019:

Distinguished Ladies and Gentlemen, dear Colleagues,

We are gathered here to call on President Muhammadu Buhari to assent to the Companies and Allied Matters Act (CAMA) Repeal Bill that was passed by the 8th Assembly and is now before the  President. This legislative framework will provide a legal foundation for the implementation of  Beneficial Ownership disclosure. If signed into law by President Buhari, it will lead to the establishment of the electronic web-based open Beneficial Ownership register in Nigeria. The ultimate goal is the establishment of comprehensive database of REAL OWNERS behind the management of private companies operating within Nigerian jurisdiction. If CAMA Bill is not signed by President Buhari this week, a decade of work will be lost and irreparable diplomatic, economic and reputational damage inflicted on Nigeria.

We recall that President Buhari made commitments to strengthen anti-corruption reforms and join the Open Government Partnership (OGP) in May 2016 during the Anti-Corruption Summit in London in a bid to deepen institutional and policy reforms. One of the commitments in Nigeria’s Country Statement issued by President Buhari at the summit was that ‘Nigeria  is  committed  to  establishing  a  public  central  register  of  company   beneficial   ownership   information.’ Three years after this bold commitment and two years of implementation of OGP, there is still no Beneficial Ownership register.

CROSS-SECTION OF PARTICIPANTS AT THE PRESS CONFERENCE ON BENEFICIAL OWNERSHIP REGISTER IN NIGERIA ON THE 1ST OF JULY, 2019.

While legitimate corporate businesses have an integral role in national development, the involvement of Politically Exposed Persons (PEPs)who conceal corruptly acquired wealth through the complex networks of companies deliberately created to hide their identities has further increased the risks they pose to non-fortified economies. The Siemens, Halliburton and Malabu oil scandals, to cite a few high-profile cases, had a net impact on revenue leakages that was unbearable for the country’s finances and the citizens’ economic well-being. Sadly, Nigeria is a global champion in the lack of transparency, shady deals and corporate scams, frequently involving elected politicians, public officials, individuals linked with the defence sector and other so called ‘elite.’

A simple signature on CAMA would have enormous benefits.

Beneficial ownership register will address Nigeria’s obligations towards

  1. Financial Action Task Force (FATF) whose efforts aim at promoting policies and standards that insulate global financial systems from acts of money laundering and the financing of terrorism and proliferation of weapons of mass destruction (Article 24 & 25).
  2. Nigeria’s obligation under the United Nations Convention against Corruption (UNCAC).
  3. The global Extractive Industry Transparency Initiative (EITI) implementation of the beneficial ownership standards in extractive sector before the 31st of December, 2019 deadline for Nigeria.

Above all, every Nigerian will profit as stolen public wealth will be exposed!

Permit me to outline that there are damning implications of not signing the law. In the absence of CAMA, we risk the suspension from the EITI initiative where Nigeria has always played an important global role and adjudged one of the best EITI countries. Furthermore, Nigeria is already under pressure from the United States, European Union and other important partners for weak compliance with anti-money laundering legislation, anti-terrorism financing and illicit financial flows. Sanctions will follow if rapid improvement is not achieved RIGHT NOW! In addition, President Buhari’s anti-corruption credentials will receive yet another blow if he fails to act on CAMA.

THE EXECUTIVE DIRECTOR OF CISLAC, MR AUWAL MUSA IBRAHIM (RAFSANJANI) BRIEFING PARTICIPANTS AT THE PRESS CONFERENCE.

We have just missed a huge opportunity to leap forward in the fight against Nigeria’s stolen wealth. The failure to enact the Proceeds of Crime Act (POCA) has inexplicably jeopardised the asset recovery effort, which the Executive champions with great vigour.  Many international partners and domestic stakeholders have been horrified to observe the opportunity lost as hundreds of millions of US dollars are awaiting to be returned to Nigeria by the international community. Without POCA, there is no framework to do that in an accountable and transparent way.

I urge us to investigate who has sabotaged the signature of POCA, which has deprived Nigerians of perhaps billions of US dollars in returned assets from abroad and also within Nigeria.

In addition, we need to act on investigation and prosecution of cases where Beneficial Ownership has been disclosed and where concerned individuals have not been able to explain the source of their wealth. Panama papers revealed 110 Nigerians, many of them active politicians. Here we have Beneficial Ownership that has proven unexplained sources of wealth of mind-blowing proportions. How many of these individuals have been investigated, prosecuted and convicted, years after evidence has been provided?

Let us be crystal clear. Concealing of beneficial owners costs lives of our fellow countrymen as terrorists use international financial systems to sustain their operations. Without transparent ownership of Nigerian and international companies operating within the Nigerian jurisdiction, we will not be able to stop the bleeding from illicit financial outflows, which costs us annually around 15.7 billion US dollars, according to Global Financial Integrity Report.

As long as wrong incentives and dysfunctional supervision dominate our national financial systems, consequences in the form of terrorism financing, trans-national organized crime, tax evasion and illegal enrichment of politically exposed persons will prevail. CAMA and the Beneficial Ownership register is one of the indispensable mechanisms that has a potential to make a real difference.

We, therefore, call on the President to live up to the expectations of well-meaning Nigerians in fighting corruption by signing the CAMA Bill into law to give a boost to the commitment to fighting corruption and reassure Nigerians that the reason for which he was given this mandate in the first place in 2015 was for the fact that we believe that he will stay true to his words and curb corruption in Nigeria. If CAMA is not enacted, we need to investigate who is sabotaging the anti-corruption agenda!

God bless us all, God bless Nigeria!

Signed

  1. Civil Society Legislative Advocacy Centre (CISLAC)/Transparency International-Nigeria
  2. African Centre for Leadership and Strategic Development
  3. Zero Corruption Coalition (ZCC)
  4. CITAD
  5. SOTU-Nigeria
  6. National Procurement Watch Platform (NPWP)
  7. African Centre for Media & Information Literacy (AFRICMIL)
  8. Open Alliance
  9. BudgIT
  10. WRAPA
  11. Centre for Democracy and Development (CDD)
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KANO ASSEMBLY VS COURT/GOV GANDUJE

A High Court sitting in Kano has stopped the Kano State House of Assembly from probing the Kano State Governor on the allegation of receiving bribes for contracts. Commenting on the face-off between the Kano State Assembly, the courts and the state governor, a legal practitioner and chairman of the Presidential Advisory Committee (PACAC), Prof Itse Sagay (SAN), said the recent viral videos on the internet purportedly showing the Kano State Governor receiving kickbacks from contractors can be authenticated using Forensic Analysis.Itsey also said the KanoState House of Assembly has the capacity and is well equipped to carry out the investigations as regards the allegation on the State Governor.

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FORMER PRESIDENT ROBERT MUGABE’S MINISTERS IN COURT ON CORRUPTION RELATED CHARGES

Two former ministers in Mugabe’s cabinet appeared in court on corruption charges almost a year after the former president of Zimbabwe was ousted from power. Following the present government’s stance of cracking down on corruption, former Minister of Information, Communication and Technology SupaMandiwanzira is facing two graft charges involving $5M (4.4m Euros). The former Local Government, Youth and Environment Minister, Saviour Kasukuwere, is also charged with illegally parcelling out land worth $2m to former first lady Grace Mugabe’s sister. Mugabe’s son in-law, Simba Chikore, was also arraigned on kidnapping charge over an alleged detention of an airline official.

Since Mugabe’s fall, several of his allies have been arrested.

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ACP, THREE OTHERS ARRAIGNED OVER N1.3bn FRAUD

EFCC Zonal, Lagos office arraigned four suspects, including a retired police officer at the Special Offences Court in Ikeja on a 14 count charge bordering on fraud and stealing to the tune of N1, 301, 334, 108 only. The suspects have amongst them a retired officer of the police force ACP IfeomaOkpalugo and three (3) others who are charged alongside YUS Investment Nigeria Limited and Olivia Osmond Nigeria Limited for diverting the above amount of money belonging to the Nigeria Police Force (NPF) to their personal use.

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FCTA’s MULTI-BILLION NAIRA COOPERATIVE IN ALLEGED N18m LEGAL FEE FRAUD.

An N18m legal fees allegedly being paid annually to the chambers of Femi Falana in Abuja by Federal Capital Development Authority FCDA Staff Multi-Purpose Cooperation is a subject of protest by members belonging to the cooperative as the whereabouts of the money is unknown. The legal firm denied any relationship whatsoever with the said cooperative. It seems that the past executives of the cooperative had been defrauding its members, which comprises workers of FCTA and FCDA. The Femi Falana chambers denied not knowing the existence of the cooperative, let alone being responsible for the whereabouts of the said funds belonging to it.