By Felix Khanoba
The Corporate Affairs Commission (CAC) says there is need for the agency to play significant role in the nation’s public procurement processes, by ensuring that only companies certified fit and proper are engaged in such activities.
Registrar General (RG) of CAC, Alh. Garba Abubakar, stated this in Abuja on Tuesday when the Ademola Seriki -led CAC’s Board met with the Minister of Industry, Trade and Investment, Adeniyi Adebayo, as well as the Minister of State, Amb. Mariam Katagum.
The RG explained that such move would checkmate identified abuses by introducing and adopting letters of good standing issued by CAC as part of the requirement for public procurements.
He further explained that the letter would show the names and address of companies, names of directors, nature of business of the company and whether the company is in any kind of compromise with its creditors by way of receivership or liquidations.
Speaking on President Muhammadu Buhari’s assent to the Companies and Allied Matters Bill, 2020 passed by the National Assembly, the CAC boss lauded the development, saying the amendment in the companies’ law would bring about positive change in the nation’s economic landscape.
While assuring the readiness of the Commission to ensure that the full letter of the new Companies and Allied Matters Act (CAMA) are given effects, Garba said CAC would collaborate with the National Assembly to ensure that the law is gazetted.
He said the Commission would come up with regulations that will define certain transactions, particularly regulations of modern articles of association.
“We had the former law which was not extensive enough because various companies have been complaining and the provisions are not well encompassing.
“Now that we have the opportunity to come up with regulations on articles, it will go a long way in bringing a better governance structure for most of the companies and if we do well, companies don’t have to submit their own articles for registration,” he said.
Earlier, the CAC’s Board Chairman, Ademola Seriki, said they were at the Ministry to show appreciation over positive developments recorded by the Commission in recent times.
He commended the ministers for been able to deliver on the new CAMA, which had dragged on for last two decades, even as he lauded the President for his wisdom in signing the law.
He said with the new development, Nigeria would soon witness more friendly business environment in the area of Commerce and Industry as well as Financial/ Capital Market.
Responding, the Minister of Trade said a memo would be prepared to the Federal Executive Council (FEC) to approve the proposed regulations which will become part of the processes.
Adebayo expressed hope that CAC would put forward regulations the CAC that would further boost the ease of doing businesses in the country.