₦29m CAC Consultancy Payment Under Probe Over Alleged Third-Party Transfers
Uzoma Mba
Fresh documentary evidence has surfaced raising concerns over the alleged diversion of public funds within Nigeria’s Corporate Affairs Commission (CAC), the federal agency responsible for company registration and corporate regulation.
Documents exclusively reviewed by this newspaper, including payment vouchers, bank transaction records and electronic communications, indicate that a payment of ₦29,060,189.89 made by the Commission to a private media consultancy was allegedly broken into multiple tranches and transferred to third-party accounts reportedly linked to individuals within the inner circle of a senior public official.
The development has triggered renewed calls by civil society organisations and legal practitioners for an independent forensic investigation by anti-corruption agencies.
At the centre of the controversy is a payment of ₦29,060,189.89 made by the Commission to Black Root Media Network Ltd, reportedly for consultancy services rendered to the agency. Official records show the payment was processed under Voucher Serial Number 2193 on 7 August 2024, funded from public resources of the Corporate Affairs Commission.
While the engagement of consultants by government agencies is routine, scrutiny has shifted to transactions allegedly carried out shortly after the funds were disbursed. Bank records reviewed indicate that soon after receiving the payment, Black Root Media Network Ltd allegedly initiated a series of transfers in structured tranches of ₦5 million each to separate accounts.
One of the beneficiary accounts identified in the documents is Star of Stars Integrated Services, Account Number 1304264619, domiciled with Unity Bank. Another transfer of similar value was reportedly made to Sparkle of Sparklers Enterprise.
Financial crime experts consulted described the transaction pattern — involving the rapid fragmentation of funds into round-figure transfers — as a recognised warning indicator in corruption and money-laundering investigations. Under compliance frameworks of the Economic and Financial Crimes Commission (EFCC) and global anti-money-laundering standards, such structured transfers may suggest attempts to conceal beneficial ownership, obscure financial audit trails, facilitate indirect gratification or evade regulatory detection thresholds.
A former commercial bank compliance officer, who spoke on condition of anonymity, said immediate round-figure transfers executed in tranches after receipt of public-sector payments typically activate internal monitoring mechanisms. “It fits what investigators describe as a layering pattern,” the source said.
Independent corporate registry checks and internal sources suggest that some beneficiary entities may have connections to individuals maintaining close personal or family relationships with a senior public officer. Legal analysts note that, if proven, such arrangements could constitute breaches under the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Act, the Code of Conduct for Public Officers, Public Service Rules and the Money Laundering (Prevention and Prohibition) Act.
An Abuja-based constitutional lawyer said where proxy companies are used to receive indirect benefits from government contracts, issues of conflict of interest and abuse of office inevitably arise.
Investigators also reviewed electronic messaging records allegedly showing instructions relating to the routing of funds to at least one beneficiary account. Forensic accounting experts say alignment between digital communications, transaction timelines and beneficiary records may help establish knowledge and intent, control over financial flows and beneficial ownership relationships. Such evidence, analysts say, could warrant the filing of Suspicious Transaction Reports under banking regulations and possible criminal investigation.
The emerging disclosures appear to reinforce allegations contained in an earlier staff petition submitted to federal authorities, which accused the Commission’s leadership of contract inflation, procurement irregularities, abuse of office, undeclared assets and financial mismanagement. Governance advocates argue that the issues may extend beyond a single transaction and could require a broader institutional audit of consultancy engagements and procurement processes within the Commission.
The Corporate Affairs Commission occupies a strategic position in Nigeria’s economic architecture, overseeing corporate registration, regulatory compliance and transparency in business ownership. Analysts warn that governance concerns within the agency could negatively affect investor confidence and ongoing ease-of-doing-business reforms.
A public finance transparency advocate noted that institutions charged with enforcing corporate integrity must themselves operate above suspicion, adding that confidence in Nigeria’s investment climate depends on public trust.
Civil society organisations and anti-corruption advocates have urged the EFCC, the ICPC, the Code of Conduct Bureau and relevant National Assembly oversight committees to undertake an independent forensic review. They are seeking examination of consultant engagements, related-party transactions, beneficial ownership structures and asset declarations linked to the transactions.
Analysts warn that failure to conduct a transparent investigation could erode confidence in Nigeria’s corporate regulatory framework and broader governance reform efforts.
