Osun gov’t sanctions Segilola over tax evasion, environmental pollution

By Deborah Oladejo, Osogbo

The Osun 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.

Speaking at a briefing in Osogbo on Thursday, the Special Adviser to the Governor on Mining and Mineral Resources, Prof. Lukman Jimoda, stated that the state’s investigation uncovered various unethical business practices, including alleged tax evasion, the use of proxies, and failure to comply with environmental regulations.

Companies such as SINIC Engineering, ATF Consulting, and Monurent Nigeria are allegedly outsourcing employment and operations to undisclosed third parties without proper documentation or environmental compliance.

Prof. Jimoda emphasized that environmental oversight falls under the concurrent list in the federal constitution, allowing states to assess the economic and environmental impacts of companies’ operations.

Despite the Segilola project’s significant production since 2019, the company has reportedly resisted complying with laws such as the Personal Income Tax Act (PITA) and the Company Income Tax Act (CITA).

He further expressed concerns over pollution, including particulate emissions and possible acid drainage from waste rocks, which pose serious environmental risks. The Special Adviser added that Osun has not received its due revenue from the project for over three years, despite its bankable gold production.

“The government is prepared to take necessary actions to ensure compliance and safeguard the state’s environmental and economic interests,” Prof. Jimoda stated.

Dr. Wale Bolorunduro, Financial Consultant to the Office of Mining and Mineral Resources, also presented a report highlighting allegations of tax evasion and non-compliance with legal requirements by Thor Explorations Ltd and its subsidiaries. He warned of the severe financial implications for Osun State due to the company’s alleged failure to meet its obligations.

Dr. Bolorunduro noted concerns over Osun State’s interests in Tropical Mines Ltd being diminished without due financial compensation, raising questions about the fairness of Thor Explorations’ practices in Nigeria compared to its compliance with international standards in the UK and Canada.

Governor Ademola Adeleke’s administration has emphasized the need for due payments, while ensuring business operations continue smoothly, signaling a balanced approach that fosters investment without compromising the state’s fiscal health.

In response to allegations of involvement by the Adeleke Dynasty in the management of the Segilola Gold Project, Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, denied the claims, assuring the public that the administration would not relent in ensuring the state receives its rightful dues from all operating companies.

Meanwhile, Segilola Resources Operating Limited (SROL), the company managing the project, has issued a rebuttal to the allegations. Austin Menegbo, Country Manager of SROL, asserted that the company is committed to transparency and law-abiding practices, fulfilling all tax and royalty obligations to both federal and state governments.

He added that SROL maintains detailed records for all payments and tax remittances, which are available for verification.

Menegbo also denied claims of environmental and operational non-compliance, stating that the company has adhered to all necessary protocols for environmental assessments and regulatory filings.

He emphasized that SROL has been regularly audited by the Federal Ministry of Environment and the Ministry of Solid Minerals Development, and no claims of pollution or violations have been made against the company.

“As one of Nigeria’s leading mining companies, we remain committed to contributing to the state and country’s economic growth while adhering to the highest ethical and operational standards.

“We will continue to maintain open communication with relevant authorities to ensure our operations align with both federal and state laws,” the statement read.