The Osun State Government has accused Segilola Gold Project, managed by subsidiaries of Thor Explorations Ltd, a UK-based company listed on the Toronto Stock Exchange of various unethical business practices, including alleged tax evasion.
The government raised serious concerns about the operations of the company.
The Special Adviser to the Governor on Mining and Mineral Resources, Professor Lukman Jimoda, while briefing newsmen on Thursday at the state secretariat, Abeere, added that investigations showed that the company also used proxies, and failed to comply with environmental rules and regulations.
He added that the company engaged in outsourcing employment and operations to undisclosed third parties without proper documentation or environmental compliance.
Prof. Jimoda highlighted that the federal constitution places environmental oversight under the concurrent list, allowing the state to assess companiesโ operations for economic and environmental impacts.
He emphasized 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.
He also expressed concerns over pollution, including particulate emissions and possible acid drains from waste rocks, which pose serious environmental risks to the state.
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.”
Prof Jimoda noted that the state has not received its due revenue from the Segilola project for over three years, despite its bankable gold production since 2019.
โThe government is prepared to take necessary actions to ensure compliance and safeguard the stateโs environmental and economic interestsโ, the Special Adviser added.
In his submission, the Financial Consultant to the Office of Mining and Mineral Resources, Dr Wale Bolorunduro, while presenting his report, 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.
Dr Bolorunduro highlighted the stateโs concern over the companyโs alleged tax evasion and failure to comply with legal requirements, which could have severe financial implications for Osun.
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โThe 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 Stateโs interests in Tropical Mines Ltd were strategically diminished without due financial compensation, raising questions about the fairness of the companyโs practices in Nigeria versus its compliance with international standards in the UK and Canada, where it is publicly listedโ. Dr. Bolorunduro stated.
An Email message sent to the company for reaction has not been replied to as of the time of publishing this report.
