The Osun State government has vowed to petition Segilola Gold Project, managed by subsidiaries of Thor Explorations Ltd, a UK-based company, on alleged tax evasion and other exploration sharp practices.
However, the state government has demanded the payment of accrued taxes and environmental development levies, as well as proper documentation for all involved parties.
The Special Adviser to the Governor on Mining and Mineral Resources, to Prof. Lukman Jimoda, made these known on Thursday, at a press conference in Osogbo, the State capital.
Prof. Jimoda stated that States that investigation has revealed various unethical business practices, including alleged tax evasion, use of proxies, and failure to comply with environmental rules and regulations.
He said “The findings are on the unethical business practices, alleged tax evasion, sharp operational practices of using proxies, companies in their commercial activities of outsourcing employment, drilling, etc to parties that are not disclosed to the state government for environmental assessment and security documentation.
Prof. Jimoda noted that the federal constitution places environmental oversight under the concurrent list, allowing the state to assess companies’ operations for economic and environmental impacts.
He emphasized that the Segilola project, despite its significant production since 2019, has continued to violate extant laws like the Personal Income Tax Act (PITA) and the Company Income Tax Act (CITA) which govern tax levies.
He also expressed concerns over pollution, including particulate emissions and possible acid drains from waste rocks, which pose serious environmental risks to the state.
The Special Adviser stressed that Osun has not received its due revenue from the Segilola project for over three years, despite its bankable gold production since 2019.
“The government is prepared to take necessary actions to ensure compliance and safeguard the state’s environmental and economic interests”, the Special Adviser noted.
While presenting his report, the Financial Consultant to the Office of Mining and Mineral Resources, Dr. Wale Bolorunduro said the government was seeking to reclaim its financial rights and ensure compliance with tax regulations.
Dr Bolorunduro highlighted the state’s concern over the company’s alleged tax evasion and failure to comply with legal requirements, which could have severe financial implications for Osun.
“The refusal to remit taxes from both direct employees and service providers, as well as the evasion of other financial obligations, highlights a deeper issue of corporate governance and transparency.
“Particularly troubling is the claim that Osun State’s interests in Tropical Mines Ltd were strategically diminished without due financial compensation, raising questions about the fairness of the company’s practices in Nigeria versus its compliance with international standards in the UK and Canada, where it is publicly listed”. Dr. Bolorunduro stated.
