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Gold Mining: Osun Government shuts Segilola Resources Operating Limited over alleged tax evasion, other violations

*The Osun State Government of Nigeria explains its action follows a recent court order permitting the state to shut the company for various flagrant tax violations, and failure to disclose fully the employees directly and indirectly involved in its business activities, obstruction of tax processes by failing to provide timely tax information and necessary documents to regulatory authorities

Isola Moses | ConsumerConnect

Sequel to recent complaints over alleged tax infractions, and shortchanging of the South-West state in Nigeria in its due, lawful financial benefits totalled over N60 billion, the Osun State Government Monday, September 30, 2024, wielded the big stock by sealing off the business premises of Segilola Resources Operating Limited (SROL) in the state.

The Osun State Government said its action followed a court order permitting the state to distrain the company for various flagrant tax violations and failure to disclose fully the employees directly and indirectly involved in its business activities, obstruction of tax processes by failing to provide timely tax information and documents.

The Osun State Government had filed the court order, contained in a motion ex-parte dated September 27, 2024, through the Attorney-General of the state against Segilola Resources Operating Limited.

Chief Magistrate Dr. Olusegun Ayilara, therfore, granted the order for the closure following the state government’s request.

The court order stated: “The Attorney-General of Osun State is hereby permitted to seal and lock up all the business premises of Segilola Resources Operating Limited in Osun State for failing to comply with a Tax Audit on PAYE, Withholding Taxes, and Development Levy from 2019 to 2023, until the owed sum is fully paid into the Osun State Government Account.”

ConsumerConnect reports Segilola Resources Operating Limited is one of the major companies carrying out mining activities and mineral exploration in the state as a subsidiary of Thor Explorations Limited listed on both London, in the United Kingdom (UK) and Toronto Stock Exchanges, in Canada, respectively.

Segilola Resources adamant, remorseless over tax evasion and other violations ─Info Commissioner

Justifying the state government’s latest sweeping measure applied against the mining company, Oluomo Kolapo Alimi, Osun State Honourable Commissioner for Information and Public Enlightenment, in a statement issued Monday 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 Attorney-General of Osun State approached the court, and consequently, obtained an order of the court to seal off the company until the due sum calculated from 2019 to 2023 is fully liquidated into the Osun State Government Account.”

Alimi stated: “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.

“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.”

On accrued financial considerations on ‘Transformational Acquisition’ to Osun State

It is recalled the Osun State Government Friday, September 27, had accused Thor Explorations, in London, UK, as the parent company, and Segilola Resources Operating Limited, its subsidiary operating the Segilola Gold Project in parts of the state of failure to honour its commitment to payments of the accrued financial considerations due to state on the “Transformational Acquisition” of Osun State’s interest between 2016 and 2019.

Speaking on behalf of the Osun State Government last Friday, Dr. Wale Bolorunduro, Financial Consultant to the Office of Mining and Mineral Resources, in a statement, declared that since the ‘operation operandi’ was purely commercial, and it was Segilola Resources Operating Limited that carried out strategic annihilation of Osun State’s interest in the ownership of the Tropical Mines Limited (TML), in 2016, and the eventual commercial transaction of Transformational Acquisition by Thor Explorations Limited (Thor) UK, “without due financial considerations to Osun State”, it is now imperative for the companies involved to pay over N60 billion to the Osun State Government.

Bolorunduro also noted while “other legacy co-shareholders of Tropical Mines Limited” got financial considerations for the Commercial Transaction, including shares in Thor Explorations Limited, UK, and other financial considerations at the time, Osun State got nothing, as the state later discovered, based on its review of the transaction, which commenced early 2023.

The financial consultant further purported that for the past 20 months, Segilola Operating Resources Limited had refused to honour its commitment to commencing payments on the accrued financial considerations due to Osun State on the said Transformational Acquisition of Osun’s interest between 2016 and 2019.

“Even, when a tenor repayment plan payable over two years was offered by Osun state Governor to them to preserve the need to encourage the national and the state investment drives in the mining sector.

“The efforts and demand of Osun State to realise our claims, which is over 60 billion Naira in monetary value and Redeemable Shares as financial considerations for acquiring Osun State’s interest in Tropical Mines Limited have always been rebuffed by Segilola Operating Resources Limited,” stated he.

The statement also noted: “At least four meetings had been held with the Executive Governor, H.E. Governor Adeleke and the CEO of SROL, Mr. Segun Lawson, in attendance and with promises made to commence payment.

“Only for the company to renege on its promises, and choose to go and misrepresent the state in Abuja, Ministry of Solid Minerals (Development).”

Consultant avers Osun remains a significant shareholder in Thor Explorations UK

Condemning the company’s suggestion directing the Osun State Government to TML, Dr. Bolodunro stated that the attempt “offends our collective sensibility as people with culture and dignity.

“It is the responsibility of Thor UK to return the values which ought to have been given to Osun State abinitio.

“As co-shareholder in Thor, UK. Osun deserves to treated with fairness, equity and without prejudice to our interest.”

The expert argued: “Let no mischief makers, political oppositions especially Osun APC spin it, in their usual dirty way.

“Recovering Osun interest and encouraging a global company (though a junior Miner) to treat its co-shareholder properly is proper under company law and in any jurisdiction. “The fact that Thor has admitted a shareholding proportion, which is significant in the Legacy Company, Tropical Mines Ltd makes Osun state a significant shareholder.”

We’re poised to pursue ‘cash considerations, others’ due to state: Bolorunduro

The Osun State Government, Dr. Bolorunduro stated, has capacity to de-convolute the complex structure employed to gradually, strip the Osun state’s interest between 2016 and 2019.

“We know the roles played by various special purpose vehicles (SPVs) that were set up, including Segilola Resources Operating Limited, Segilola Gold Ltd and the eventual transformational acquisition by Thor Explorations Ltd, UK.

“Unlike the previous administration, we are not interested in selling Osun’s interests, which include the shares, partially redeemed, now and grudgingly so by Thor Explorations UK from the complex and multiple-convoluted commercial transaction,” he declared.

The financial consultant also restated: “We will continue to pursue the cash considerations and others, due to Osun State, without losing our dignity and without compromising our integrity.”

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