- Safiu Kehinde
The Federal Government has intervened over the taxation dispute between Osun state government and Segilola Resources Operating Limited.
Sequel to last week’s sealing of the the mining industry by Osun state government, the Ministry of Solid Minerals Development stepped in to resolve the dispute.
As contained in a statement issued on Friday by the Special Assistant on Media to the Minister of Solid Minerals Development, Segun Tomori, the ministry has commenced probe into the claims and counter-claims of Osun State Government and Thor Explorations Limited, owners of the Segilola Resources Operating Limited over taxation and operational matters.
According to the statement, the Minister, Dele Alake, set up a fact-finding team to carry out the investigation on tax evasion and other allegations melted on the industry by Osun state government in an effort to resolve the dispute and restore industrial harmony.
Led by Dr. Mary Ogbe, the Permanent Secretary, Ministry of Solid Minerals Development (MSMD), the fact-finding committee comprised of representatives of the Federal Inland Revenue Service (FIRS), Ministry of Labour and Employment and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
Meanwhile, Alake expressed concern over the negative impact the closure of the company will have on the mining industry, stressing that it could abort efforts to attract Foreign Direct Investments (FDI) and provoke divestment.
“ Indiscriminate closures of mining operations by subnationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies. Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken.” Dr. Alake asserted.
The Minister further reiterated the Federal Government’s interest in raising the tempo of productive activities nationwide to boost economic growth, increase employment and community development.
He stressed that any cessation of industrial production will undermine the goals of economic prosperity, deny workers the opportunity to earn income, and further contribute to adversity.
Alake called on both parties to co-operate with the fact-finding team and allow production to continue while the issues are resolved.
“ I hereby call on His Excellency, the Governor of Osun State, Sen. Ademola Adeleke and the management of Thor Exploration Limited to sue for peace and industrial harmony in the interest of the workers and their dependents who may be adversely affected by closure of operations at the factory.” he added.