Fresh documents have raised new corruption concerns within the Corporate Affairs Commission (CAC) after records reviewed indicated that more than ₦29 million in public funds paid to a consultancy firm was allegedly routed through proxy accounts linked to individuals within the inner circle of the Commission’s leadership.
According to the documents, which include payment vouchers, bank transaction records and electronic communications, a total of ₦29,060,189.89 was paid by the Commission to Black Root Media Network Ltd for consultancy services rendered to the agency. Official records show that the payment was processed under Voucher Serial Number 2193 on August 7, 2024, from CAC public funds.
However, investigators say the major concern lies in what happened after the funds were released. Bank transaction records reviewed indicate that shortly after receiving the payment, the consultancy firm allegedly split the funds into multiple tranches of ₦5 million and transferred them to third-party accounts.
One of the beneficiary accounts identified in the documents is held with Unity Bank and belongs to Star of Stars Integrated Services, while another transfer of a similar amount was reportedly made to Sparkle of Sparklers Enterprise.
Financial crime analysts say the pattern of transactions resembles methods commonly used to conceal the origin and ultimate beneficiaries of funds. A former bank compliance officer, who spoke on condition of anonymity, said the transaction pattern raised immediate red flags.
“When you see immediate round-figure transfers in multiple tranches from a freshly credited public-sector payment, it triggers internal monitoring systems,” the former compliance officer said. “It’s a classic layering typology.”
The allegations are emerging at a time of mounting scrutiny of the CAC leadership at the National Assembly. The Senate on Thursday called on President Bola Ahmed Tinubu to sack the Registrar-General of the Commission, Hussaini Magaji, for repeatedly failing to appear before the Senate Committee on Finance.
Lawmakers made the call during the Ministry of Finance’s budget defence session and an interactive meeting with the economic team in Abuja. Senator Orji Uzor Kalu moved the motion seeking the registrar-general’s summons and the termination of his appointment, while Senator Adams Oshiomhole seconded it.
“Since I came to this Senate, he has consistently failed to appear before this committee when invited,” Kalu said. “He is fond of sending junior officers to represent him as if he were above the law. This can no longer continue.”
Oshiomhole, while supporting the motion, warned that the National Assembly might withhold funding for the Commission. He said lawmakers would not appropriate funds for the agency in the 2026 budget if the situation persisted.
The Chairman of the Senate Committee on Finance, Senator Sani Musa, also criticised what he described as disregard for legislative oversight by some government agencies.
“I must address institutional responsibility. The Senate Committee on Finance exercises constitutional authority to oversight MDAs,” Musa said. “It is, therefore, unacceptable that some MDAs delay submissions or ignore legislative inquiries or refuse to honour invitations. Oversight is not an optional courtesy. It is a constitutional requirement.”
Musa warned that the committee would not hesitate to invoke its constitutional powers to ensure compliance and accountability.
Meanwhile, investigators and governance advocates say the alleged financial layering could be used to disguise beneficial ownership, obscure audit trails and facilitate indirect benefits linked to public contracts. Independent corporate registry checks and internal sources also suggest that some of the beneficiary entities may be connected to individuals with close personal or family ties to a senior public official within the Commission.
Legal analysts say if such links are established, the case could amount to violations of several anti-corruption laws enforced by agencies such as the Economic and Financial Crimes Commission and the Independent Corrupt Practices Commission, as well as potential breaches under the Code of Conduct framework overseen by the Code of Conduct Bureau.
A senior constitutional lawyer based in Abuja said the alleged use of proxy entities to receive indirect benefits from public funds represents a known corruption scheme.
“The use of proxy entities to receive indirect benefits from public contracts is a well-documented corruption typology,” the lawyer said. “If beneficial ownership can be traced to a related party, that raises serious conflict-of-interest implications and possible abuse of office.”
Electronic messaging records reviewed as part of the investigation also appear to show instructions relating to the routing of funds to at least one of the beneficiary accounts. Forensic accounting specialists say such communications, when matched with transaction timestamps and beneficiary details, can help establish knowledge, intent and control over financial flows.
Experts add that, if confirmed, the transactions could trigger Suspicious Transaction Reports under banking regulations and open the door for deeper investigations by anti-corruption agencies and financial regulators.
The allegations also appear to reinforce claims raised earlier in a staff petition submitted to federal authorities. The petition reportedly accused the Commission’s leadership of contract inflation, procurement irregularities, abuse of office, undeclared assets and broader financial mismanagement.
Governance advocates argue that the issue may extend beyond a single transaction and could point to systemic weaknesses in consultant engagements and procurement oversight at the CAC, an institution responsible for company registration, regulatory compliance and corporate disclosures in Nigeria’s business environment.
“Institutions responsible for corporate integrity must themselves be beyond reproach,” a public finance transparency advocate said. “Investor confidence depends on transparency and accountability within agencies like the CAC.”
Civil society organisations and anti-corruption advocates are now calling for a comprehensive forensic investigation into the transactions and related procurement processes, warning that failure to act decisively could undermine public trust in Nigeria’s corporate regulatory framework and governance standards. #SECURITYNEWSALERT.COM
