Gov Adeleke unveils Revenue And Solid Mineral Sector Reforms

The Osun State Governor, Senator Ademola Adeleke on Monday unveiled a comprehensive reforms of the revenue and solid mineral sector of the state government with far-reaching directives affecting mining companies and revenue generating agencies and stakeholders.

Inaugurating two separate committees, namely revenue and solid minerals, Governor Adeleke issued several directives to block revenue leakages; increase internally generated revenues; recover unpaid solid minerals payments from Segilola and other companies; halt illegal mining; review the operation of Osun State Internal Revenue Service; suspend control post licences; orders new terms of engagements for revenue collecting agents; orders review of licencing conditions for logging related permits; and vow to ensure mining companies pay for environmental pollution and degradation.

The Governor who decried the situation whereby revenue collectors were earning more than the state government, directed that henceforth all revenue generated must go into the coffers of the state after which decision will be taken on the percentage to be paid to collectors.

While further lamenting huge revenue loss, Governor Adeleke wondered why Segilola gold company has never paid a dime to the Osun State Government for the past 25 years that it has been mining gold in the state.

“Osun state according to extant laws is entitled to 13 percent derivation from every ounce of gold extracted from our gold and other solid mineral fields. Segilola and other operating companies are expected by law to pay Osun state 13 percent derivation on the value of gold and other solid minerals produced in the last 25 years.

“Till date, we have no record of any payment made by Segilola and other mining companies to Osun state. My administration is determined to recover every penny owed Osun state by companies operating in Osun gold fields.

“Osun state has been subjected to intense environmental degradation arising from activities of mining companies. River Osun has been polluted and our people are dying as related sicknesses are spreading. These are sad realities which none of the mining companies has raised a finger to address. My administration will insist on the companies paying for the cleaning up of our rivers and environment. Segilola and other companies operating in our state should take note that cleaning up of our environment is going to be a continous exercise and the resulting expenditure is to be borne by the companies. I will not allow Osun people to continue to be exposed to polluted river water and the state to be so cheated.

“My administration is conducting an audit of Osun assets in the mining sector. All state mining licences already diverted to private possession must be fully recovered. All illegal mining activities must stop immediately. Henceforth, all illegal mining syndicates will be arrested and prosecuted”, the Governor posited.

On the revenue side, Governor Adeleke vowed to stop huge leakages in revenue collection, which he blamed on corrupt practices, unfavourable revenue collection terms and outright inefficiencies in the revenue collection processes.

Speaking further, the Governor noted “My administration will not condone a situation whereby revenue agents are earning more than the state. All revenue inflow must go to the Coffers of the state. We must then decide what will be the collection fees to be paid to the revenue agents. Consequently, all revenue agents operating on behalf of the state must report to the committee immediately for new terms of engagement.

“I have reports of extensive illegal logging of precious woods without permit from the state government. Consequently, all logging permits such as hammer and concession permits are hereby suspended pending review by the committee.

“My administration is in possession of report detailing low revenue returns and corrupt practices across the Control posts. Consequently, all consultants manning the control posts and collecting haulage revenue are hereby suspended pending review by the revenue committee.

“Furthermore, I direct this committee to review the following category of permits payments namely Control post/border checkpoints haulage; plantation or forest reserve concession allocation permit; sawmill permit and renewal; flinch sawn evacuation permit; timber and logs permit; hammering permit or release permit; motor-saw permit; forest reserve access permit and Tungya farming system allocation permit.

“My administration is directing a review of the Osun State Internal Revenue Service. The committee is therefore expected to review the operations of the agency and submit appropriate recommendations to increase internally generated revenue by substantial percentage”, the Governor affirmed.

Responding on behalf of the Committee members, the Chairman of the Solid Minerals Committee, Mr. Samuel Oyedokun assured the Governor of their total commitments to the execution of the mandate given to the two committees.

“We totally share the passion and commitment of His Excellency for transparency and accountability in the management of Osun mineral assets and revenue inflows. We promise to commence operations immediately and ensure the fulfilment of His Excellency’s various directives,” he noted.

Each of the committee has 14 members. The Chairman of the Revenue Committee is Mr. Sola Adewumi while the Secretary is Mr. Hamsat Solanke. The Chairman of the Solid Minerals Committee is Mr. Samuel Oyedokun with Barrister Hashim Abioye as the Secretary.

The list of the Committee members are as follows:

SOLID MINERALS COMMITTEE

1. Samuel Oyedokun– Chairman

2. Bola Ojofeitumi– Vice Chairman

3. Barrister Hashim Abioye– Secretary

4. Prof Lukman Jumoda

5. Engr. Ajeigbe Seun

6. Hon Kolapo Alimi

7. Mrs Felicia Adeniran

8. Mrs Omolade Iyabo Adiamo

9. Akin Odejobi

10. Hon Lukman Ijiwoye