CAC Uncovers 189 Fake Businesses in FCT Property Allocations, Discloses How They Operate
- The Corporate Affairs Commission (CAC) said it has uncovered 189 companies used to secure land allocations in Abuja
- The Commission's Chief Executive Officer, Hussaini Magaji, said the discovery was made following a request from FCTA
- He said there is a land syndicate using phony companies to acquire properties in the FCT
The Corporate Affairs Commission (CAC) has revealed that it has uncovered 189 fake companies used in acquiring property allocations in the Federal Capital Territory (FCT).
The Commission's Registrar, Hussaini Magaji, disclosed this at a news conference in Abuja on Tuesday, October 24, 2023.
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They operate as a cartel
Magaji stated that the discovery of the phony companies prompted him to research more, leading to identifying other firms.
He said the discovery was made in response to a request from the Federal Capital Territory Administration (FCTA) to check the status of firms asking for land allocations.
He said persons behind the phony businesses created a cartel by which they collaborate with lawyers masquerading as accredited agents of the Commission and Abuja Geographical Information System staff to secure land allocations in the nation's capital.
The Nation reports that Magaji said the crime came to light after the FCT authorities sent a verification request on applications made by some entities, which the Commission does not have in its database.
Two people arrested
Magaji further revealed that two suspects have been arrested, including a lawyer.
Magaji said:
"With the information available to us, I gave a directive on the issue, and we have identified 189 fake companies used to secure land allocation in the FCT. We have also facilitated the arrest of two suspects.
He said the cartel operates by manipulating land processes to give their applications for land allocation preferential treatment, thereby facilitating land fraud in the FCT.
He stated that boosting the financial base will allow it to achieve its goal of being a world-class commission.
CAC move to delist 100,000 businesses from the database
In July, the Commission revealed that it would remove 100,000 registered companies from its records soon.
Garba Abubakar, ex-Registrar-General and Chief Executive Officer of CAC, disclosed this during a training on using the beneficial ownership register.
Abubakar disclosed the Commission to delete 100,000 registered firms from its database for failing to meet statutory requirements.
He said the Commission would notify the companies before delisting, according to Section 692 of the CAMA 2020.
Punch reports that Abubakar said the companies could register again after paying their outstanding debts and order of a court as permitted by the law.
The CAC chief advised companies to ensure timely payment of their annual returns to avoid delisting.
How to check if a company is registered in Nigeria?
Legit.ng earlier examined how people can check whether a company is registered in Nigeria.
All companies and businesses in Nigeria must be registered under the Corporate Affairs Commission.
The CAC was founded in 1990 under the Companies and Allied Matters Act.
Source: Legit.ng
