- Government raised serious concerns about the operations of the company
- Laments tax evasion, pollution, others
- Segilola dismissed allegations
The Osun State Government has sealed up mining company, Segilola Resources Operating Limited.
According to a statement issued by the state Commissioner for Information and Public Enlightenment on Monday, 30th of September, 2024, the move followed a court order permitting the state to distrain the company for various flagrant tax violations and failure to fully disclose the employees directly and indirectly involved in its business activities.
The statement also included obstruction of tax processes by failing to provide timely tax information and documents as one of the infractions.
Segilola Resources Operating Limited is one of the major companies carrying out mining activities and mineral exploration in the state as a subsidiary of Thors Explorations Limited, listed on the London and Toronto Stock Exchanges.
The statement reads, “After a series of demands, meetings, consultations, and engagements, the company still remained adamant and remorseless in its tax evasion and other violations. The Attorney General of Osun State approached the court and consequently obtained an order to seal up the company until the due sum calculated from 2019 to 2023 is fully liquidated into the Osun State Government account.
“The state notes with regret that while some companies make billions of naira in the state, especially in the mining sector, they are not ready to give the state its lawful dues.
“While the issue of shareholding values due to the acquisition of Osun State interest in Tropical Mines is purely commercial, we will continue to hold the company responsible for all its actions.”
Recall that the state government had, in a statement, demanded the sum of N60 billion as dividends accruing to the state from the Segilola Gold Project.
The state government also raised serious concerns about the operations of the company.
During a press briefing addressed by Lukman Jimoda, Special Adviser to Governor Ademola Adeleke on Mining and Natural Resources, and Wale Bolorunduro, Financial Consultant, Ministry of Mining and Natural Resources, it was revealed that investigations pointed to various unethical business practices, including alleged tax evasion, use of proxies, and failure to comply with environmental rules and regulations.
Irked with the allegations, Segilola Gold Project dismissed the claims of tax evasion and unethical practices as unfounded.
In a statement issued by the company’s Country Manager, Austin Menegbo, the firm maintained its track record of compliance with legal and regulatory obligations.
Menegbo said Segilola has consistently met its tax responsibilities and royalty payments in full and on schedule.