Osun APC, PDP on collision course over revenue from mining Companies
By Sodiq Adelakun
The Osun chapters of All Progressives Congress (APC) and Peoples Democratic Party (PDP) are at loggerheads over revenue from mining activities of Segilola and other mining Companies in the State.
Osun State Chapter of the Peoples Democratic Party (PDP) on Tuesday accused the All Progressives Congress (APC) of colluding with those depriving Osun state of legitimate returns from her huge mineral deposits, blasting the party for protecting Segilola and other mining companies over the cheating and pillaging of Osun resources.
This was contained in a statement signed by Signed by Chairman, Osun PDP Caretaker Committee, Dr Akindele Adekunle.
It was gathered that APC was accused of holding brief for the mining companies to protect exposure of its complicity in mining banditry.
However, PDP expressed shock that the State APC could come out to defend mining companies who are perpetrating large scale fleecing of Osun resources, destroying the environment and corrupting the political process.
According to the statement, “We are not surprised as there are credible reports on how the mining companies regularly settle top officials of the APC and its government. When the Peoples Governor now exposes the nest of corruption, the state APC cannot even disguise to manifest its complicity. Osun people have taken judicious note of APC condoning and facilitating the fleecing of Osun natural resources.
“The Executive Governor has transparently addressed the state. He has nothing to hide. Only those hands in glove with Segilola have something to fear and that probably explains why the APC came out so shamelessly to defend those mining companies.
“The 13 percent derivation payment was openly announced by the Federal Government in 2019 and whatever name anybody called it, Osun deserves billions of returns from her God given natural resources. Even APC in advancing her hatchet job, confessed that 13 percent derivation was to be paid to solid mineral states from royalties by mining companies.
“Osun also demands immediate action on the cleaning up of her environment. Our mining field, the entire Osun East, is an environmental disaster zone. Is APC saying mining companies should continue environmental degradation without paying for cleaning up? Is APC happy that Osun People are reeling under sicknesses and dying due to the activities of Segilola and other companies.
“We note that the APC should be ashamed of its barefaced approach at sidestepping the core issues of revenue loss to the state as evidenced in the revelation of Governor Adeleke,” the statement noted, maintaining the Governor Adeleke’s administration resolves to address obvious shortchanging done to the state in the past.
“It is disappointing that the APC failed to appreciate the enormity of the damage it had wrecked on the state. Perhaps, it is still lost in its fraudulent style of governance that it could not realize the determination of the new administration to ensure sanity and probity in the management of public resources.
“For one, Governor Adeleke’s interest as firmly affirmed in the expository, was that Osun people should enjoy the benefit of their God-given natural resources. If this is not something the APC is used to, we at least expect them to pretend, and not confirm the suspicion of the public in the deliberate shortchanging of Osun people in the benefits of the mineral assets on their land.
“To help the APC out of its confusion, it is important to draw its attention to the admission in its statement of the fact that Osun State is entitled to a 13 percent derivation from every gold extracted from the State. That was exactly what Governor Adeleke said in his speech and at no where did he lay claim to royalty payment as erroneously assumed by the APC.
“Let the APC know that Governor Adeleke is in possession of every document that relates to mining activities in the State and they all pointed to the fact that Osun State has not been getting due derivations for mineral resources in its jurisdiction. In that case, Governor Adeleke is obligated to demand what belongs to the State, which was the basis for his address. We therefore wonder the basis of the APC response, and not the mining companies who are in a better position to explain its operation, what it has done and why the State has not been getting what should go to it.
“The clear inference we can draw from the hurried APC response is the likelihood of collusion with the mining companies to cheat Osun people. If that is the case, the Governor Adeleke administration will not spare any effort in pursuing this issue to a logical conclusion and as Governor Adeleke vowed in his address, recover every penny of Osun State that may have been unduly deprived it.”
Reacting to the statement issued by Osun PDP, the All Progressives Congress (APC) lashed out at the state governor, Senator Ademola Adeleke, alleging his exhibition of poor understanding of statecraft and governance.
The party, in a statement issued by its Acting State Chairman, Sooko Tajudeen Lawal, on Monday in response to what it called the Governor’s embarrassing broadcast on the mining sector, said the claims of Governor Adeleke that the state governments in the last 25 years have either mismanaged returns on mining or have failed to recover derivation due to the state were fraught with ignorance.
According to Lawal, “The claims made by Governor Ademola Adeleke today, during the inauguration of the Revenue Committee and Solid Minerals Committee set up by his government, are ones made out of ignorance and mischief designed to embarrass previous governors of the state.”
The Acting State APC Chairman said, “It is worrisome that a state government which should have access to quality expert advice from the relevant Ministries, Departments and Agencies would issue an official statement to advertise its administrative unawareness and unseriousness about 13% derivation on mining.
“Contrary to Governor Adeleke’s claim that Segilola Company and other operating companies in the state are expected to pay Osun State 13 per cent derivation on the value of gold and other minerals resources produced in the last 25 years in the state, the correct information is that miners don’t pay derivation to state.
“The miners pay royalty, ranging from three per cent to five per cent of every ounce of gold or solid minerals extracted in the state, to the Federal Government because Mining is under the Exclusive List or authority of the Federal Government,” Lawal stated.
The Acting State APC Chairman maintained that it is from the royalty paid to the Federal Government that the 13 per cent derivation is calculated and handed to the state.
The Ile-Ife-born APC Chief said it was alarming that no expert in the team of Adeleke could extend to the governor the needed information on this sensitive matter.
The visibly disappointed Acting State APC Chairman also said it was outright misrepresentation of fact the Osun state governor’s allegation that the previous governments had failed to account for derivation due to the state in the last 25 years.
In his words, “It is preposterous for the new government to demand 25 years derivation from Segilola Company.
“Is the company 25 years old in the state? Are the current government handlers aware that Segilola Company only began commercial operation in the state last year (2021); so from where did the idea of 25 years derivation arrears come?
“Matter-of-factly, the company is on a three-year tax holiday. The implication is that the company, during the administration of Governor Adegboyega Oyetola, did not pay any royalty to the Federal Government that Osun State would have laid claim to any 13 per cent derivation.
“If there was anything the state government benefited from the state government, it was the usual PAYE tax on its employees or perhaps Land Use Tax,” Lawal explained.
The Acting State APC Chairman admonished the new governor to redeem himself of political pettiness and get decent and truthful professionals that would save his government from the current doldrum that has become a huge embarrassment to the people of the state.
