Osun Govt raises concern over alleged tax evasion, environmental pollutions by mining firm
…We fulfilled all tax obligations, royalty payments in full and on time – Firm
By Ismail Azeez, Osogbo
The Osun State Government has raised serious 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.
Addressing journalists on Thursday at Exco Chamber, Bola Ige House, Abere, the Special Adviser to the Governor on Mining and Mineral Resources, Prof. Lukman Jimoda, said that state’s investigation revealed various unethical business practices, including alleged tax evasion, use of proxies, and failure to comply with environmental rules and regulations.
Prof. Jimoda disclosed that the federal constitution places environmental oversight under the concurrent list, allowing the state to assess companies’ operations for economic and environmental impacts.
He noted 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.
Jimoda expressed concerns over pollution, including particulate emissions and possible acid drains from waste rocks, which pose serious environmental risks to the state.
He stressed that Osun has not received its due revenue from the Segilola project for over three years, despite its bankable gold production since 2019.
According to him, the state government is therefore demanding the payment of accrued taxes and environmental development levies, as well as proper documentation for all involved parties.
“The government is prepared to take necessary actions to ensure compliance and safeguard the state’s environmental and economic interests”, he said.
Speaking, the Financial Consultant to the Office of Mining and Mineral Resources, Dr. Wale Bolorunduro 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.
“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 stated.
Reacting to the state government allegations, Austin Menegbo, Country Manager, said the company has consistently demonstrated a commitment to being a law-abiding and transparent corporate entity, fulfilling all tax obligations and royalty payments in full and on time.
He 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, he said.
