The most trending religious gist has been the new CAMA law which was signed a few weeks ago by President Muhammadu Buhari. Many have argued that a particular section of the law is targeting religious leaders, particularly pastors who have been at the helms of the affairs of their church and have been overseeing the financial aspects of their churches for many years. In this article, DAMILARE SALAMI (08155134152) takes a deep look at the law, its implications and why many pastors kicking against it.
THE
CAMA 2020 LAW
The
new Companies and Allied Matters Act 2020, CAMA bill was signed on August 7th
and has received backlash from religious, non-governmental and human rights
organisations, who are kicking against some sections of the law particularly
section 839. The new law, “Section 839 (1) empowers the Commission to suspend
trustees of an association and appoint interim managers to manage the affairs
of the association where it reasonably believes that- (a) There is or has been
misconduct, mismanagement in the administration of the association.”
The
law makes provision for religious bodies and charity organisations to be
regulated by the registrar of the Corporate Affairs Commission (CAC) and a
supervising minister. Under the new law, church trustees can be replaced “if
they (officials) reasonably believe there has been mismanagement, misconduct or
fraud to protect its property in the public interest”.
The
law also wields power to suspend the trustees of an association or a religious
body and appoint an interim manager or managers to coordinate its affairs where
it reasonably believes that there had been any misconduct or mismanagement, or
where the affairs of the association are being run fraudulently or where it is
necessary or desirable for the purpose of public interest.
CAC
REGISTRAR-GENERAL ALHAJI GARBA ABUBAKAR SPEAKS
Speaking
at a retreat for members of Commerce Correspondents Association of Nigeria
(CICAN) held recently in Abuja, the Registrar-General of the CAC, Alhaji Garba
Abubakar raised some serious posers for the organisations kicking against the
new CAMA.
He
said: “The law says once you submit yourself by accepting to register with the
CAC, you are bound to obey all its laws as well. How is it that a registered
member who qualifies to be a trustee in an organisation would not want
government to know how the organisation is run? What are the responsibilities
of the trustees? What are the responsibilities of the governing council or the
board? How do you manage the affairs of the organisation? How do you use or
expend the income and properties of the organisation? How do you appoint
members of the governing board? These are the issues the new CAMA has come to
address.”
The
other question, which Abubakar did not ask is where were the groups when the
law was being considered in the National Assembly? Why is it only leaders of
Christian organisations and CSOs that are vociferously kicking against the law?
What options are available to groups opposed to the law other than declaring
that it is totally unacceptable to them?
WHAT MANY POPULAR PASTORS ARE SAYING ABOUT CAMA
Many
popular pastors in Nigeria have come out to express their displeasure with the
new law. Here are what some of them have said.
The
Christians Association of Nigeria (CAN) described the amended Company and Allied
Matters Act, CAMA, as satanic. While rejecting the bill, CAN called on
President Buhari to halt the implementation of “the obnoxious and ungodly law
until the religious institutions are exempted from it. The body maintained that
the bill will do no good, adding that it is ungodly, reprehensible and an
ill-wind.In a letter signed by CAN President, Rev. Samson Ayokunle, but
delivered by a former Chaplain of Aso Villa Chapel, Rev. William Okoye, CAN
detailed its objections to the law, which has been buffeted by criticisms,
especially from the Christian community.
The
letter partly read: “We respectfully acknowledge the invitation extended to us
to make an input into the Companies and Allied Matters Act, 2020 following the
myriad of objections that attended the enactment of the Act. “While we
sincerely appreciate the courtesy of your invitation, we are, however,
constrained from doing so on the following grounds: ‘We are yet to be availed
with the authentic version of the voluminous Act, made up of 870 sections
besides the sundry and complex schedules and addendum. “We consider the Act, as
indeed, a complex of statecraft compendium, laden with issues that are grossly
inimical to the national interest, security, and overall wellbeing of the
Nigerian-state. “From the reactions of stakeholders and a cross-section of the
Nigerian-state, it is apparent that the Act either did not receive input from
the respective various interest groups or failed to accommodate their views,
sundry concerns and varying interests of the Nigerian people.
The
General Overseer of the Redeemed Christian Church of God, Enoch Adejare
Adeboye, in his opinion, says he stands by CAN and PFN and noted that since both
Christian bodies have rejected the law, he has no contrary opinion.
The
presiding Bishop of the Living Faith Church Worldwide, Dr David Oyedepo in his
opinion advised the Federal Government to expunge the part of the newly-signed
amended Companies and Allied Matters Act, 2020 that gives the supervising
minister the power to remove the board of trustees of churches without recourse
to the court.
Apostle
Suleman Johnson of the Omega Fire Ministries Worldwide said ‘‘The CAMA act is a
diabolic and evil intended act. It says they can change the board of trustees
and no court can upturn it. Why will I respect an act that does not respect the
law?’’
He
also said church leaders in the U.S. and London have been funded by their
government and even given lifeline especially during the COVID-19 pandemic
“while Nigerian churches are left to their own fate”. ‘‘Somebody will say in
America, in London, the government regulates charity organisations. That’s
true. I should tell you what happens in America, I should tell you what happens
in London. We have about eight churches in London, we have about 30 in America
so I should tell you what works there. In America and London, a charity
organization can collect grants from the government. They’ll apply for grants,
and the government will fund them.
‘‘In
this last pandemic in America, I know churches who got $80,000, $100,000,
supported by the government. When you support charity organisations, you have
the right to regulate them. Is it this country we will apply for a hundred
million and the government will give us? If you give us, you can regulate us.
We are not anti-government.
RICH
PASTORS POOR MEMBERS, HOW TRUE?
Many
Nigerians have argued that several pastors and milking their members and
leaving them more vulnerable that is one of the reasons poverty has increased
in the land. Many argued that some of the warehouses and factories that
provided employment for many Nigerians have been converted into religious
houses, particularly churches.
Nigeria
was named the world headquarters of poverty a few months ago, however, some of
the richest pastors in the world are Nigerians. Here is a list of the top 10 richest
pastors in Nigeria and their net worth according to Forbes. Bishop David
Oyedepo (Winners Chapel) - $150 million (N54.5B). Pastor Chris Oyakhilome ranks
second with an estimated net worth of $50 million. Pastor Enoch Adejare Adeboye
(RCCG) - $39 Million. Prophet Temitope Babatunde Joshua (Synagogue Chruch of
all nations) - $25Million. Pastor Ayodele Oritsejafor - $15 Million. Others are
Pastor Chris Okotie (Household of God) - $10 Million, Pastor Matthew Ashimolowo
- $6 Million (KICC). Pastor Gbenga Oso - $3.5 Million (Laughter Foundation),
Bishop Mike Okonkwo (TREM) - $3 Million.
Pastor Lazarus Muoka (The Lord’s Chosen Charismatic Movement)
‘HOW
PASTORS MAKE THEIR MONEY’
Apostle
Johnson Suleman maintained that their monies are not ill-gotten.
‘‘All
these men of God you’re mentioning, Oyedepo, Baba Adeboye, how are they rich?
I’ll tell you. The people who they invested in years ago are the ones now
taking care of them. I am just telling you how pastors get money. There are
people I raised up sixteen years ago, I trained them in school, did everything
for them and today, they are taking care of me. ‘‘You say I should reject what
they are giving me? They swear for me? There are some of you now, who I am
supporting and taking care of. In the next five, six, seven years, God blesses
you legitimately, won’t you take care of me? This is the secret to pastors’
wealth. ‘‘The tithes and offerings that come from this church are used for
diesel. This last time when there was a lockdown was my best time because I saved
a lot of money. There were no members to ask me for money, there were no
members to ask me for rent. I was just enjoying myself. “The very Sunday they
opened church, four million naira left me. We’re helping. There are some
pastors that are ‘eating’ money, that’s their business.”
BENEFITS OF CAMA 2020
It
is no longer news that the repealed Act was overdue for a change after 3
decades of provisions that became obsolete due to the dynamic nature of doing
business globally. The new Act is expected to bring succour to businesses and
promote ease of doing business. Some of the apparent benefits of CAMA 2020 are:
Watered
down regulations for Micro, Small and Medium Enterprises: The new Act seems to
ease some of the hitherto regulatory requirements for small businesses. This is
expected to increase the activities of MSMEs thereby growing the economy in the
process. More so, the reduction of reporting obligations of small companies,
such as exemption from the yearly audit process will reduce cost so that more funds
can be ploughed back into the business for expansion.
Reduction
in time and cost of setting up a company: The new Act makes it easy for small
businesses operating within the informal sector to be able to incorporate their
businesses by registering at the Corporate Affairs Commission without the aid
of a Lawyer. This has the potential of widening the tax base of the country
thereby increasing revenue earned from taxation of corporate entities, and
diversifying the economy.
Promotion
of Financial Stability: The introduction of model netting provisions in the Act
as a means of mitigating credit, risks promotes financial stability and investor
confidence in Nigeria.
Increasing
Investor Confidence in the Nigerian Financial Sector as well as all sectors of
the economy: Investor confidence in the Nigerian financial sector and indeed,
all sectors of the economy is expected to significantly improve, due to a
competitive and business-friendly environment where companies are regulated in
line with global best practices.
Ease
of Doing Business – CAMA 2020 mostly manifests the objective of the Nigerian
government to simplify business operations and ensure overall progression in
the Nigerian business environment. The friendly provisions towards small
businesses will encourage more commercial activities which will attract
potential investors and develop the economy. It is expected that the new Act
will usher in a new business regime for overall economic development in line
with international best practices.
CONTROVERSIAL
AREAS UNDER CAMA 2020
As
with any other regulation, CAMA 2020 has certain grey areas as well as
drawbacks which professionals may grapple with. Some of the identified
disadvantages are:
Blanket
Authority of the CAC – in the new Act, the CAC is now empowered to impose
penalties according to their discretion. Prior to CAMA 2020, the number of
penalties were expressly stated, for example, officers of companies were either
liable to pay 50 naira for every day a default persists or a fixed fee, but the
new CAMA mostly leaves the amount of penalty at the pleasure of CAC. The effect of
this is that the commission may assess fees as it think fit regardless of the
gravity of non-compliance. It is therefore important for companies to observe
strict compliance with the provisions of the Act so as to avoid heavy fines
that may accrue as a result of non-compliance.
Informality
of Small Companies and MSMEs – The Act seems to tilt more in favour of small
companies as they are exempted from regulatory bottlenecks and corporate governance
standards. Although this may be considered a benefit as the objective is to
reduce operational cost, however, companies whether small or large require a certain level of legal and regulatory decorum for optimal growth and
profitability. Such companies are therefore advised to engage the services of
professionals to advise and manage their affairs.
Steep
Regulations for NGOs, Associations, and Foundations – Part F of CAMA 2020
empowers the CAC to fire trustees and employ managers to replace them. In addition
to this, the Commission may, with the assistance of the Banks, freeze the bank
accounts of any association whose account is dormant. It is thus contemplated
that the requirements of CAMA 2020 concerning NGOs may stifle the affairs of
Associations and lead to the dissolution of many of them. Furthermore, many may be
discouraged from incorporating their associations due to the strict
requirements now involved in running the affairs of an association. Currently, the CAC has implemented its guideline to obtain the consent of the Registrar
General before registering an NGO or Association although this requirement is
ostensibly absent in CAMA 2020 but now in motion at the commission at an extra
cost.
Likelihood
of Bias –The Administrative Proceedings Committee introduced by CAMA 2020 and
to be presided over by the Registrar General negates the principle of natural
justice. It is a known principle of law that no person can judge a case where
they have an interest. The Chairman of the Administrative Committee should be
an independent person with the full knowledge and experience in company law as
opposed to the Registrar General. Although there is a provision for appeal from
the decision of the committee, it is equally imperative to ensure that the
proceedings of the committee are free from any form of bias.
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