The Socio-Economic Rights and Accountability Project (SERAP) has asked President Muhammadu Buhari to rescind his assent to the amended Companies and Allied Matters Act.
President Buhari had on 7 August assented to the amended Act, replacing the 1990 CAMA.
Development Diaries understands that, although the amended Act introduces provisions that appear to promote the ease of doing business while reducing regulatory obstacles, it has been strongly condemned by some concerned stakeholders, including SERAP.
A bone of contention is the provision that empowers the Corporate Affairs Commission (CAC) to take over and manage NGOs on allegations of misconduct.
SERAP, in an open letter, asked the Nigerian leader to send the legislation back to the national assembly to address its perceived fundamental flaws, including deleting sections 839, 842, 843, 844 and 850 contained in Part F of the Act, and any other similar provisions.
Section 842 of the Act, which empowers CAC to dissolve entities ‘for an unsatisfactory response to CAC request for evidence of activities over dormant accounts’, has also been condemned by the Resource Centre for Human Rights and Civic Education (CHRICED).
‘With these provisions, the government now has overly broad and discretionary powers to arbitrarily withdraw, cancel or revoke the certificate of any association, suspend and remove trustees, take control of finances of any association, and to merge two associations without their consent and approval of their members’, the letter, signed by SERAP’s Deputy Director, Kolawole Oluwadare, read.
‘These restrictions, coupled with repressive broadcasting codes and Nigerian security agencies’ relentless crackdown on peaceful protesters and civil society, demonstrate the government’s intention to suppress and take over independent associations.
‘SERAP is concerned that the provisions would be used by the authorities to exert extensive scrutiny over the internal affairs of associations, as a way of intimidation and harassment, which would eventually unduly obstruct the legitimate work carried out by associations.
‘We would be grateful if the requested action and measures are taken within 14 days of the receipt and/or publication of this letter.
‘If we have not heard from you by then, the Registered Trustees of SERAP shall take all appropriate legal actions to compel you and your government to take these measures in the public interest.
‘Please note that SERAP has instructed its Legal Counsel, Femi Falana (SAN), to take all appropriate legal actions on our behalf should your government fail and/or neglect to act as requested’.
On its part, the CAC says the law has come to stay, insisting that it would go ahead with the implementation of the law as soon as the national assembly gazettes it.
According to the Registrar-General of the CAC, Garba Abubakar, the amended CAMA was not targeted at any particular group.
It was gathered that while speaking at a two-day retreat of the Commerce and Industry Correspondents Association of Nigeria (CICAN) in Abuja, Abubakar said that registered entities had nothing to fear as long as they operate within laid down regulations.
Source: SERAP
Photo source: Paul Kagame