FG Bans MDAs From Transacting Bussiness With Unregistered Firms


FG Bans MDAs From Transacting Business With Unregistered Firms


The Federal Government has banned Ministries, Departments and Agencies (MDAs) from transacting business with companies and other corporate bodies that were not duly registered by the Corporate Affairs Commission.
A circular issued by the Office of the Secretary to the Government of the Federation said that the measure is aimed at protecting MDAs from entering contractual obligations with fake or unregistered companies, even as the Minister of Finance warned that payments for contracts by companies that did not comply with the requirements may not be considered.
For companies and other corporate bodies to qualify for business transactions with MDAs, their letterhead must bear the Registration Number (RC) as issued by the Corporate Affairs Commission.
The letter head must also have contact telephone numbers, valid e-mail address and official company address as well as the names and nationalities of the Directors of the company at the bottom of the page.
The Circular said: “This is to ensure transparency in the dealings of Government with corporate entities and to ensure compliance with the provisions of the Companies and Allied Matters Act.”
To strengthen the enforcement of the circular, the Minister of Finance, Mrs. Kemi Adeosun, has directed the Accountant-General of the Federation to cause all Directors of Finance and Accounts in Federal MDAs to strictly comply with its contents.
The Minister urged those wishing to engage in transactions with Government entities to comply with the requirements to avoid delay in payment.
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