By Haruna Salami
Stakeholders in Trade, Industry and Investment and Non-Governmental Organisations have thrown their weight behind the proposed amendment of Companies and Allied Matters Act (CAMA) 2020.
They spoke at a public hearing on a Bill to Amend the Companies and Allied Matters Act 2020 to Strengthen the Operation of Non-Governmental Organisations in Nigeria organised by Senate Committees on Trade and Investment and Diaspora and NGOs on Monday.
The Minister of Trade and Investment, Otumba Niyi Adebayo who thanked the Senate Committees for organising the forum, however said Presidential Committee on Ease of Doing Business and CAC, two agencies under his ministry would make their presentations.
The Director General of Policy and Legal Advocacy Centre, PLAC, Clement Nwankwo said the public hearing was very critical to them as the have issues that have to be settled within the Corporate Affairs Commission, CAC such as NGOs reporting twice a year while businesses report only once.
Nwankwo said , “NGOs are not saying they don’t want to be accountable, but they are asking for a better way to do this”, adding “it is the duty of government to provide enabling environment to do business”.
Patrick Alah of Spaces for Change while supporting the amendment said he has issue with section 839 which empowers CAC to appoint Interim managers for companies, saying this interferes with the citizens right associate”.
“The proposed amendment has duplication of roles. CAC’s power should be limited to administrative review”, he said.
Oluseyi Fatuyi, Economic Cooperation Division, International Cooperation Department, Federal Ministry of Finance, Budget and National Planning (National Planning Arm) who represented the Ministry said Nigeria, being a developing nation with diverse socio-economic and development challenges, has attracted a large number of International Non-Governmental Organisations (INGOs) that provide support to the government and the most vulnerable in the society.
According to him “one of the major challenges facing a lot of the INGOs in the course of setting up operations in Nigeria has been the issue of incorporation with the Corporate Affairs Commission (CAC).
“The CAC often compel INGOs to change the operational name which they are known in the various jurisdictions or countries which they operate. This has stalled the operation of some INGOs in Nigeria as they are unable to detach or adopt a new name different from their names of incorporation in their Country of Origin (Globally recognized).
“INGO registered under a different name from its corporate body becomes an entity, which can surreptitiously operate as an independent body while still drawing administrative and operational cost from their countries of origin.
He recommended that INGOs should, therefore, be accorded the privilege of maintaining the names they are registered with in their Countries of Origin, while strengthening systems to align their activities for national development.
The Christian Association of Nigeria , in its memorandum suggested section 839 of Companies and Allied Matters ACT (CAMA) 2020 provides for-suspension of Trustees, Appointment of Interim Managers, etc, is “inconsistent with sections 4(8), 6(6)\(b) and 40 of the 1999 Constitution of the Federal Republic Nigeria (as amended).
“Section 839 of CAMA 2020 is also against sections 825, 826, 827, 828,829, 830, 831, 832, 833, 834, 835, 835, 836, 837, 838 of CAMA, 2020. Section 839 of CAMA, 2020 to be deleted out rightly.
“Amend or delete section 842(2) of CAMA, 2020 giving the Commission the right to dissolve the association, is unconstitutional as it violates section 6(1) of the Federal Republic of Nigeria (As Amended) vesting powers on Courts.
The Economic and Financial Crimes Commission, EFCC said “the proposed amendment does not define what constitutes misconduct to guide the court whether it is a misconduct or mismanagement”.
This position was made known by Chile Okoroma, Director Legal and Prosecution of the anti graft agency.
However, the Registrar General/CEO of CAC, Garba Abubakar said “there is a lot of misconception, some out of ignorance or sheer mischief”.
He said the Commission was not harassing anybody adding “money laundering and terrorism financing make us to strengthen our laws”.
“Most of you are collecting money from donors, why are you afraid of reports/returns”, he concluded.
