Stop allowing inactive companies to transact business, CAC warns banks

The Corporate Affairs Commission (CAC) has warned commercial banks to stop permitting inactive and non-compliant companies to carry out financial transactions, disclosing that it has submitted 263 illegally registered companies to the Economic and Financial Crimes Commission (EFCC) for investigation and possible prosecution.

The Registrar-General and Chief Executive Officer of the CAC, Hussaini Ishaq Magaji, SAN, made the disclosure at an ongoing event marking the Commission’s 35th anniversary celebration in Abuja.

Magaji revealed that 248 of the illegal entities were fraudulently inserted into the CAC system, while an additional 15 companies were later identified and forwarded to the EFCC for further investigation.

According to him, the companies were operating within the Nigerian system without traceable corporate identities and without contributing to national revenue through taxation.

“In the year under review, we submitted to the EFCC a list of 248 fake company registrations that were illegally inserted into our system through unlawful means,” Magaji said.

“These were purported entities operating within Nigeria without traceable corporate identity and without contributing to national revenue.

“We also identified and submitted an additional 15 such entities for further investigation.”

He noted that the actions formed part of decisive steps taken by the Commission to cleanse its internal systems and demonstrate zero tolerance for corruption, even in the face of legal challenges and personal attacks.

Magaji further disclosed that three members of staff of the Commission were handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for alleged involvement in suspicious and unauthorised dealings with company records.

“These actions were taken to eliminate the chances of compromise and to strengthen integrity within our processes,” he stated, adding that the fight against corruption requires sacrifice and institutional courage.

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