Documents expose N29m payment through proxy accounts linked to CAC senior official

Fresh evidence has come out showing alleged diversion of public funds within the Corporate Affairs Commission (CAC), Nigeria’s corporate registry agency.

Payment vouchers, bank transaction records and electronic communications indicate that N29,060,189.89 paid by the Commission to a private media consultancy was subsequently broken into tranches and transferred to third-party accounts allegedly linked to individuals with close ties to a senior public official in the commission.

The revelations have prompted calls from civil society and legal experts for a forensic investigation by anti-corruption agencies.

At the centre of the controversy is a payment of N29,060,189.89 made to Black Root Media Network Ltd.

Official records from the Public funds unit of the Corporate Affairs Commission reviewed show the payment was processed under: Voucher Serial Number: 2193 with August 7, 2024 date.

The payment reportedly formed part of consultancy services rendered to the Commission.

However, the transaction had previously been flagged in a staff petition submitted to federal authorities, alleging financial impropriety, contract irregularities and abuse of office under the current leadership of the Commission.

While government agencies routinely engage consultants, the concern raised by investigators centres on what happened after the funds were disbursed.

Bank transaction records show that shortly after receipt of the funds, Black Root Media Network Ltd allegedly initiated a series of transfers in tranches of N5,000,000.

One beneficiary account identified in the documents is Star of Stars Integrated Services, with the account number: 1304264619, Unity Bank

Another transfer of similar value was reportedly made to Sparkle of Sparklers Enterprise.

Financial crime experts consulted described the pattern — multiple high-value transfers in structured tranches shortly after receipt of public funds — as a recognised red flag in corruption and money-laundering investigations.

Under the Economic and Financial Crimes Commission (EFCC) compliance frameworks and global anti-money-laundering standards, rapid fragmentation of funds may indicate attempts to – Conceal beneficial ownership, Obscure audit trails, Facilitate indirect gratification, Avoid detection thresholds

A former compliance officer at a commercial bank, speaking on condition of anonymity, explained, “When you see immediate round-figure transfers in multiple tranches from a freshly credited public-sector payment, it triggers internal monitoring systems. It’s a classic layering typology.”

Independent corporate registry checks and internal sources suggest that the beneficiary entities may be linked to individuals with close personal or family relationships to a senior public officer.

If established, legal analysts say such arrangements could amount to violations under several statutes, including, the Independent Corrupt Practices Commission (ICPC) Act; the Code of Conduct for Public Officers; Public Service Rules; The Money Laundering (Prevention and Prohibition) Act.

A senior Abuja-based constitutional lawyer said, “The use of proxy entities to receive indirect benefits from public contracts is a well-documented corruption typology. If beneficial ownership can be traced to a related party that raises serious conflict-of-interest implications.”

Electronic messaging records reviewed by investigators appear to show direct instructions concerning the routing of funds to at least one of the beneficiary accounts.

In one communication, the sender allegedly directed that funds be transferred to a specified account associated with one of the entities.

Forensic accounting specialists say that when digital correspondence aligns with transaction timestamps and beneficiary records, it can help establish knowledge and intent, control over financial flows and beneficial ownership links.

Such findings, if substantiated, could trigger Suspicious Transaction Reports (STRs) under banking regulations and potential inquiries by regulators and law enforcement.

The emerging details appear to reinforce broader concerns raised in an earlier staff petition, which alleged contract inflation, procurement irregularities, abuse of office, undeclared assets and financial mismanagement.

The CAC plays a central role in Nigeria’s business environment, overseeing company registration, regulatory compliance and corporate disclosures.

As Nigeria seeks to improve its investment climate, analysts warn that any perception of governance lapses within the Commission could have broader economic implications.

Civil society organisations and anti-corruption advocates are urging the Economic and Financial Crimes Commission, the Independent Corrupt Practices Commission, the Code of Conduct Bureau and relevant National Assembly oversight committees to intervene and investigate the suspicious transaction,

They are calling for examination of: consultant engagements, related-party transactions, beneficial ownership structures, and asset declarations

The Corporate Affairs Commission is central to: Corporate governance enforcement, Investor protection, Ease of doing business reforms and Transparency in business ownership.