Osun Government Frowns At Operations Of Segilola Gold Project
Written by News Desk on September 26, 2024
Osun State government says it will take necessary steps to address the various unethical business practices, including alleged tax evasion, use of proxies, and failure to comply with environmental rules and regulations by Segilola Gold Project.
The Special Adviser to the Governor on Mining and Mineral Resources, Professor Lukman Jimoda-Adekilekun stated this while addressing journalists on the state’s investigation on mining activities at the Exco Lounge, Governor’s Office, Abere.
According to Professor Jimoda-Adekilekun, the State Government has raised concerns about the operations of the Segilola Gold Project, managed by subsidiaries of Thor Explorations Ltd, a UK-based company listed on the Toronto Stock Exchange.
He said the companies included SINIC Engineering, ATF Consulting, Monurent Nigeria, Rabaa Cleaning Limited, Deep Rock Drilling Services and CEFO Security Limited for engaging in outsourcing employment and operations to undisclosed third parties without proper documentation or environmental compliance.
Professor Jimoda-Adekilekun maintained 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 resisted complying with 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 noted that Governor Ademola Adeleke’s administration has emphasized the need for due payments to be made, while also ensuring that business operations continue smoothly which underscores the state’s willingness to foster investment, but not at the expense of its fiscal health or integrity.
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 is significant, as the government seeks 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”.
He added that the state government is demanding the payment of accrued taxes and environmental development levies, as well as proper documentation for all involved parties
