The Registrar General of the Corporate Affairs Commission (CAC), Garba Abubakar, has said that companies that are not fit and qualified should not engage in public procurement.
Chairman of the Board, CAC, Ademola Sariki and Registrar General, CAC, Gariba Abubakar, disclosed this during a courtesy visit to the Minister of Industry Trade and Investment, Otunba Adebayo and his minister of state, Amb. Mariam Katagum.
The RG explained that there are different provisions of the law that states the qualifications of those that should bid for public procurement, adding that one of the requirements under the public procurement act is that a company should not be under any form of receivership.
According to him, “The current practice where all that is required are certificates of registration and articles of association of these entities does not actually help because you can’t see on the face of the certificate whether a company is actually subject to any form of receivership.
“We had earlier proposed that one of the ways of checkmating some of these abuses is by introducing, adopting letters of good standing to be issued by CAC as part of the requirements for public procurement.”
He added that the letter of good standing can take the place of memorandums and articles stating that it is all encompassing and will show you the name of the company, the address the names of the directors, the nature of the business of company and whether the company is under any form of arrangement or compromises with its creditors by way of either receivership or liquidation.
“And at a glance the letter will show you if the company has encumbrances, whether they have borrowed money, the extent to which they have borrowed. And that will give awarding agencies the opportunity to make impudence’s whether to entrust such kind of procurement on this kind of company,” he stressed.
On President Buhari’s assent of the Companies and Allied Matters (CAMA) Bill, 2020 recently passed by the National Assembly, Garba lauded the development and added that the country has not had any significant change in company law and regulations in the last 2 decades.
He assured that the Commission is ready to ensure that the full latter of the laws are given effects and in doing that, they are ready to collaborate with the National Assembly to ensure that the law is gazetted.
He said they will need to come up 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 there own articles for registration,” he said.
He said they will come up with fees and make it uniform fees, adding that discrimination in fees is very difficult to manage but uniform fees make it easier to access.
He said they will have a committee that involves stakeholders such the Nigerian Bar Association (NBA) and the Institute of Directors in designing the regulations and come up with something that is acceptable to the larger segment of those that will benefit from these provisions.
Earlier, the Chairman Board of Corporate Affairs Commission (CAC), Ademola Seriki said they were at the Ministry to show formidable appreciation and steer a clear message to Nigerians that this is a new steering wheel in the business area of the CAC under the leadership of himself and the Registrar General.
He further lauded that Minister for being able to deliver what has been on in the last 2 decades regarding the new law of CAMA signed into law by Mr. President.
He said with this, Nigerians can now see a friendly business in the area of Commerce and Industry and also in the Financial Capital Market.
The minister while responding assured that they will prepare a memo to the Federal Executive Council (FEC) to approve the proposed regulations which will become part of the processes.
He said he is looking forward to the regulations the CAC is putting together that will continue with the ease of doing businesses in the country.
Get more stories like this on Twitter
Start earning cryptocurrency/gram today with no investment by taking rolls, watching videos, referring, signing smart contract etc. Earn 500 grams($1000) like i do with no investment. Click here to join