The Osun State Government, on Thursday, said there is no Jupiter that could prevent it from recovering N3.2 billion in taxes, the Federal Government refuses to remit to the purse of the state government.
The state government which threatened to take all necessary steps to recover it said, the unremitted taxes are from the federal government mining company (SEGILOLA) located in the state.
The Special Adviser to the state Governor on Mining and Natural Resources on Solid Minerals Prof. Lukman Jimoda who made this known at a press conference in Osogbo, condemned the act he described as unethical.
He however frowned at operations of the Segilola Gold Project, managed by subsidiaries of Thor Explorations Ltd, a UK-based company listed on the Toronto Stock Exchange over, alleged tax evasion, use of proxies, and failure to comply with environmental rules and regulations.
The governor’s aide pointed out tha further that, the state’s investigation revealed other various unethical business practices being engaged upon by the mining company.
The special adviser added that the companies involved — such as SINIC Engineering, ATF Consulting, Monurent Nigeria, and others — are reportedly engaged in outsourcing employment and operations to undisclosed third parties without proper documentation or environmental compliance.”
According to him, the federal constitution places environmental oversight under the concurrent list, allowing the state to assess companies’ operations for economic and environmental impacts.
“But the Segilola project, despite its significant production since 2019, has resisted complying with extant laws like the Personal Income Tax Act (PITA) and the Company Income Tax Act (CITA) which govern tax levies.”
“The state government is therefore demanding the payment of accrued taxes and environmental development levies, as well as proper documentation for all involved parties”.
“The government is prepared to take necessary actions to ensure compliance and safeguard the state’s environmental and economic interests”.
“The state government is ready to take all necessary steps including legal battle. The Osun state will do whatever is legal, no matter how temporary, it is to fulfil the statutory obligation of the government to Osun state citizens.”
“We don’t want them out of Osun state but they must fulfil their obligations and responsibilities to Osun state.
The company, Segilola Resources Operating Limited (SROL) have been evading payment of taxes to the state despite environmental hazards occasionally caused by the mining operation in the state”.
Also speaking, the Financial Consultant to the Office of Mining and Mineral Resources, Dr. Wale Bolorunduro while presenting his report said the allegations against Thor Explorations Ltd and its subsidiaries mark a significant moment for Osun State, as the government seeks to reclaim its financial rights and ensure compliance with tax regulations.
Also speaking, Dr Wale Bolorunduro, Financial Consultant, Ministry of Mining and Natural Resources hinted that agencies of Government and their technocrats have carried out proper assessments; the review and meetings had been held to encourage Segilola and its associates to pay promptly, while the onus of proof remains with them, according to the extant laws on taxation.
According to him the Company, SROL has engaged in subterfuge to allegedly evade tax by failing to disclose, fully, its service providers, using the same premises and their corresponding tax information required by the state for proper tax assessment of their employees, staff and labour.
This has reflected in the delay and extra work that the government officials had to go through. An obstruction under section 97 of PITA. The State Government had no choice than to take action now, no matter how temporary or subtle, on the failure of the company to provide tax information on the 3.2Billion Naira, Four (4) year PAYE Assessment and withholding tax (individuals) remittance, on full disclosure basis to the Government since 11th July, 2024 deadline given to the company.
Despite the fact that the burden of proof is on the tax payer (Segilola), according to Personal Income Tax Act (PITA); we have done our best.”
“It is unfortunate that Thor Explorations Ltd of United Kingdom listed on London and Toronto Stock Exchanges will allow its subsidiaries and associates on Segilola Gold Project to embark on an unholy structuring of their payroll, commercial activities without full disclosures of all operators, allegedly to evade the tax payments due to Osun state. We are alarmed that what cannot be condoned in other jurisdictions is being carried out by Thor Explorations.
On the alleged Adeleke Dynasty is involved in the management of the Segilola Gold Project, Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi denied the report, noting that those holding a stake or the other in the gold firm areas shortchanged the Osun state government.
Reacting to the allegations, the country manager of Segilola Resources Operating Limited, Austine Menegbo said, the company under his watch has consistently demonstrated a commitment to being a law-abiding, transparent corporate entity, fulfilling all tax obligations and royalty payments in full and on time.
“The company maintain detailed records and have receipts for all royalty payments made to the Federal Government, as well as tax remittances to the State Government.”
“We are regularly audited by the Federal Ministry of Environment and the Ministry of Solid Minerals Development and to date, there has been no claim of pollution or environmental violations against the company”
“As one of Nigeria’s leading mining companies, we remain committed to contributing to the economic growth of the state and the country while adhering to the highest ethical and operational standards. We shall continue to maintain an open line of communication with relevant authorities to ensure that our operations are aligned with both federal and state laws”.
“The claims of environmental and operational non-compliance are not true as the company have sufficient evidence to prove that it followed all necessary protocols for environmental assessments and regulatory filings, including environmental compliance monitoring and mitigation of potential environmental impacts”, he submitted.
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