Oyo, Ibadan Disco Biker over Debts

Kemi Olaitan in Ibadan

The Oyo State Government has sealed the Ibadan Electricity Distribution Company

(IBEDC) Plc offices in the state for disconnecting electricity supply to the state secretariat in Ibadan.

The Chief Operating Officer of the distribution company (Disco), Mr. John Ayodele, who made the disclosure in a statement issued yesterday, said the state government went ahead to shut its offices despite that it was owing it N450 million over three years.

But in a swift reaction, the state Board of Internal Revenue said it sealed the offices of IBEDC over a tax default in excess of N400 million.

The Board in a statement issued by its Chairman, Mr. Femi Awakan, said the state government duly obtained an order from the Oyo State High Court before sealing some of the offices of the distribution company.

Ayodele explained that the state government was claiming that the company owes it revenue bills and personal income tax, stating that IBEDC had written several letters to the state and had held meetings with its officials to remind them of the need to pay the debt so that the company would not go under, but they failed to pay.

The statement issued by IBEDC read: “The management of Ibadan Electricity Distribution Company (IBEDC) Plc hereby informs its esteemed customers of the retaliatory and illegal action of the Oyo State Government over the issue of its huge indebtedness.

“The Oyo State Government on February 9, 2022, commenced the sealing of our offices within the state over some suddenly contrived debts labelled revenue bills and personal income without due notification.

“This issue of revenue bills and personal income arising now is quite suspicious.

“The state government owes IBEDC a whopping consumption outstanding of N450 million for over a period of three years.

“Ayodele explained that the company, as part of efforts to get the outstanding paid, initiated several engagements through correspondences and physical meetings, but all these efforts yielded no result.

“No business in this country can run successfully with such a huge outstanding, the power we distribute to customers must be accounted for and paid for, we have no other choice but to disconnect the Oyo State secretariat. So it is worrisome to see that the government has sealed off our offices with this underhand and arm twisting tactics instead of paying the debt owed.

“This was not done in good faith and it would have damaging effect on the business and service delivery to our customers.”

The COO, however, appealed to the state Governor, Seyi Makinde, to look into the matter in the interest of all concerned as this would further exacerbate the power challenges and pressure on residents and commercial activities within the state.

“IBEDC engages in essential services to the public, and the effect of this arm twisting tactics can at best be imagined if not quickly arrested,” he stated.

Some of the offices affected by the action included the company’s headquarters in Ring Road, Ibadan, and its offices at Mobil, off Ring Road, Dugbe, Ojoo/Iwo Road office as well as Monatan, all in Ibadan.

Awakan disclosed that the state government had applied for the warrant to enforce the payment through suit number: M/122/2022, which has the governor of Oyo State, the Attorney-General and Commissioner for Justice, and the state Board of Internal Revenue Service as applicants, while IBEDC is the respondent.

According to the statement, the state government had in line with its avowed commitment to the observance of the rule of law, filed an application before Justice O.M. Olagunju, seeking the issuance of a warrant authorising its officers to “distrain upon any land, premises or places of which the respondent (IBEDC) is the owner.”

He said the court order is to enable the state government enforce the payment of arrears of taxes to the tune of N400,546,111,41k, being taxes accumulated by the IBEDC in respect of harmonised bills, infrastructure bills, tax audit bills and signage bills, and which the company has failed to pay in the last two years.

The statement revealed that breakdown of the bills include harmonised bill, N139.440,000; infrastructure bills, N122.590,000; tax audit bills, N116,516,111.41. and signage bills, N22,000,000.

The statement read: “It is to be noted that the IBEDC has a statutory obligation to deduct and remit revenue bills to the government of Oyo State through the Board of Internal Revenue.

“It is also to be noted that the distribution company failed and neglected to remit any such personal income tax of its employees within the period under review and that the Board of Internal Revenue several times served requisite demand notices calling attention to the company’s tax liabilities/obligations.

“Relying on Section 45 of the Revenue Law of Oyo State, the presiding judge, Justice O.M Olagunju, issued the warrant and affirmed that: ‘Accordingly, I hereby issue a warrant in favour of the officers of the applicant (Oyo State Government) named in the schedule to this application authorising one or all of the named officers to distrain upon any land, premises or places of which the respondent is the owner, particularly the respondents head office at Ring Road and Dugbe, Ibadan, for the purpose of enforcing payment of taxes in the sum of N226,756,000.41k only, representing its outstanding tax liability for the year 2021 of assessment which has become final and conclusive.

“Though the court order affirmed the 2021 tax liabilities to the tune of N226,756,000.41, as final and conclusive for immediate enforcement, the total tax arrears payable by IBEDC is in excess of N400 million and this excludes Land Use Charges and others.”