The Osun State Government has accused Segilola Gold Mining Company of evading tax for three years and also engaging in unethical business practices.
The allegations were made on Thursday by Special Adviser to Governor Ademola Adeleke on Mining and Mineral Resources, Lukman Jimoda while addressing a press conference in Osogbo, capital of the state.
He said the state investigated the gold mining firm and discovered that it carried out various unethical business practices, including alleged tax evasion, use of proxies, and failure to comply with environmental rules and regulations.
Jimoda said, “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.”
He highlighted that the federal constitution places environmental oversight under the concurrent list, allowing the state to assess companies’ operations for economic and environmental impacts.
He emphasised 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 state government therefore demanded the payment of accrued taxes and environmental development levies, as well as proper documentation for all involved parties.
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”, he noted.
Also speaking, the Financial Consultant to the Office of Mining and Mineral Resources, 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.
Meanwhile, the state government has debunked insinuation that the Adeleke Dynasty is involved in the management of the Segilola Gold Project.
Commissioner for Information and Public Enlightenment, Kolapo Alimi noted that those holding a stake or the other in the gold firm areas shortchanged the Osun state government.
However, the gold mining company has denied the allegations by the state government, claiming that it 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’s Country Manager, Austin Menegbo, said, “We maintain detailed records and have receipts for all royalty payments made to the Federal Government, as well as tax remittances to the State Government. These documents are readily available for verification.
“The claims of environmental and operational non-compliance are not true as we have sufficient evidence to prove that we have followed all necessary protocols for environmental assessments and regulatory filings, including environmental compliance monitoring and mitigation of potential environmental impacts. In addition, 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.”
