• ’We’re fulfilling tax obligations, royalty’
Osun State Government yesterday threatened legal action against Segilola Gold Ltd over alleged unremitted N60billion taxes and unethical business practices.
The government, through the Special Adviser on Mining and Solid Mineral, Prof. Lukman Jimoda,
Financial Consultant on Mining and Mineral Resources, Dr Wale Bolorunduro, while addressing reporters at the Governor’s Lounge during a news conference, also alleged failure of the company to comply with environmental rules.
Jimoda raised concerns that Segilola Gold Ltd was operating sharp operational practices by using proxy companies in its commercial activities of outsourcing employment, drilling and others.
He said Segilola evaded taxes, failed to disclose security documentation, carried out business premises levies evasion, stripped Osun State of its interest in Tropical Mines Limited since 2016 and committed non-payment of environmental development levy.
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Bolorunduro said: “Segilola failed to pay over N60billion to Osun State. The worth of gold that are being taken away from Osun State yearly cost over $200million.
“The company is attempting to sidestep its fiscal responsibilities, with far-reaching consequences for the state’s revenue. The refusal to remit taxes from both direct employees and service providers, as well as the evasion of other financial obligations, highlighted a deeper issue of corporate governance and transparency.”
Segilola Gold Ltd through its Country Manager, Austin Menegbo, said: “We wish to refute the allegations made by Osun State Government concerning tax evasion and unethical business practices.
“Our company has consistently demonstrated a commitment to being a law-abiding, transparent corporate entity, fulfilling tax obligations and royalty payments in full and on time. We maintain detailed records and have receipts for royalty payments made to the Federal Government, as well as tax remittances to the state government.”