Edo State Governor, Monday Okpebholo, has approved the appointment of Tony Kabaka, a self-confessed former cultist who claims to have renounced political thuggery, as an enforcement consultant for the state’s internal revenue service.
In a letter dated February 10 and addressed to Kabaka, the Edo State Internal Revenue Service (EIRS) stated that he would collaborate with the in-house compliance and enforcement unit to enhance revenue collection and remittance.
The contract, awarded to Atalakpa Recovery Concepts Ltd., which Kabaka manages, is set for an initial three-month period, during which the state anticipates a significant increase in revenue.
The appointment letter was signed by Oladele Bankole-Balogun, the Executive Chairman of EIRS.
The letter read in part, “I am pleased to convey His Excellency, Senator Monday Okpebholo, the Executive Governor of Edo State, approval of your proposal to act on behalf of the Edo State Government as enforcement consultant to the Edo State Internal Revenue Service (EIRS).
“You will be expected to work closely with the in-house compliance and enforcement unit (EIRS). This appointment is target-based, and as such the Service expects a marked increase in revenue collection and remittance.
“You are to ensure in the conduct of this appointment a professional approach devoid of any rancour or public outrage. The Service is mindful of its obligations to the people of Edo State and welcomes your partnership.
“The appointment is effective for three months only in the first instance and subject to review at the end of the period.”
FIJ looked into Atalakpa Recovery Concepts Ltd., the company handed the contract, and found that it was inactive on the Corporate Affairs Commission (CAC) website.
According to the CAC’s frequently asked questions page, “If your business status is inactive on (the) CAC website, you will need to file your annual returns up to date before the status of the business can become active. Some people usually ask, why is my business status still inactive after filing the annual return? After filing your annual returns, you will need to send a mail to the Corporate Affairs Commission and request that they should change your business status from ‘inactive’ to ‘active’. You should attach the acknowledgement letter of approval for your annual return to the mail.”
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The Edo State Internal Revenue Service (EIRS) has come under scrutiny for awarding a contract to Atalakpa Recovery Concepts Ltd., a company linked to Tony Kabaka, despite its inactive status with the Corporate Affairs Commission (CAC). According to CAC regulations, a company is deemed inactive if it has failed to file its annual returns, a process that typically takes between three to seven days.
By awarding a contract to a company that has not met its statutory filing obligations, the EIRS has violated the Companies and Allied Matters Act (CAMA). Under CAMA, companies that fail to submit annual returns risk being delisted from the CAC database. If a company does not file for 10 years, it loses its legal status and privileges, as outlined in Section 425(3) of CAMA 2020.
For a Limited Liability Company like Atalakpa, the law mandates that annual filings be submitted no later than 42 days after their annual general meeting.
When contacted by the Foundation for Investigative Journalism (FIJ) on Friday, Tony Kabaka insisted that his company was properly registered with the CAC and had all necessary documents. However, when asked about compliance with CAMA, he handed the phone to his personal assistant.
The assistant acknowledged that Atalakpa Recovery Concepts Ltd. was registered in 2016 but admitted he was unaware of CAMA requirements or the necessity of filing annual returns.
“We are active,” he told FIJ. “We even have a contract with the railway corporation. Please send me the details for what we have to do, and I will send it to the company account officer.”
Tony Kabaka, a controversial figure in Edo State politics, previously admitted to being involved in cultism and political thuggery. In a 2021 interview with the BBC, he claimed to have mobilized cult groups for election victories and employed over 7,000 tax collectors through his company, Akugbe Ventures, generating billions of naira for the state.
“If you sat me down and said, ‘Can you identify Black Axe in government?’ I will identify,” Kabaka told the BBC. “Most politicians, almost everybody is involved. If the government wants to seek election, they need them. Cultism still exists because the government is involved, and that is the truth.”
FIJ previously reported how Kabaka and his associates caused a ruckus outside the Edo State High Court in Benin before the relocation of the governorship election tribunal to Abuja.
The EIRS contract awarded to Kabaka’s company has now raised fresh concerns about transparency, legality, and the enforcement of corporate governance laws in Edo State.
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