Alleged Tax Evasion: Osun govt seals off mining firm

The crisis between the Osun State Government and a mining firm – Segilola Resources Operating Limited, on Monday further degenerated as the government sealed off the company’s premises following a court order.

A magistrate court, sitting in Osogbo, presided over by Magistrate Olusegun Ayilara ordered the immediate shutdown of the company until further notice.

The company’s office, located in Iperindo community of Atakumosa East Local Government Area of Osun State, was sealed off on Monday.

The shutdown of the mining firm was carried out by court bailiffs in collaboration with armed security personnel, including members of the Police Joint Task Force and operatives of Amotekun Security Corps.

The latest development followed a motion ex-parte dated 27 September and filed by the Osun State Government through the Attorney-General of Osun State against Segilola Resources Operating Limited in suit number MOS/M.531/2024.

The government sought a court order to seal off all the business premises of Segilola Gold Firm for violation of Tax Audit on Payee, Withholding Taxes and Development Levy, from 2019 to 2023 until the due sum is fully liquidated into Osun State Government Account.

However, the management of Segilola Resources Operating Limited has consistently denied the allegations of tax evasion and obstruction, insisting that it has always acted as a law-abiding and transparent corporate entity by fulfilling all its tax obligations.

In a paid advertorial signed by its Country Manager, Austin Menegbo, and published in some newspapers recently, the company insisted that as a responsible firm, it had always fulfilled its legitimate obligations to the government and the host communities.

Court order

While issuing the order, the Magistrate, Mr Ayilara declared: “The Attorney-General, Osun State is hereby permitted to seal up and lock up all the business premises of Segilola Resources Operating Limited in Osun State for violating Tax Audit on Payee, withholding Taxes and Development Levy from 2019 to 2023 until the due sum is fully liquidated into Osun State Government Account.”

Also, a press statement signed by the Osun State Commissioner for Information and Public Enlightenment, Kolapo Alimi, said: “After a series of demands, meetings, consultations, and engagements, the company still remained adamant and remorseless in its tax evasion and other violations.

“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.

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“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.”