Oyo State government and the management of the Ibadan Electricity Distribution Company clashed on Wednesday over accumulated bills and power cuts at the State Secretariat.
Gatekeepers News reports that the electricity company disconnected the state government secretariat’s power supply over the unpaid N450 million electricity debt and the state government, in retaliation through the Oyo State Bureau of Internal Revenue, sealed off offices of IBEDC over “non-payment of accumulated tax.”
IBEDC described the sealing off of its office as “arm twisting tactics instead of paying the debt owed”. According to IBEDC’s Chief Operating Officer, John Ayodele, the N450 million is for a period of three years.
He explained that the company has had several engagements through correspondences and physical meetings in a bid to get the debt cleared but to no avail.
“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 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,” Ayodele said in the statement.
“This was not done in good faith and it would have a damaging effect on the business and service delivery to our customers.”
The state government, in its reaction, dismissed claims that it sealed off the IBDEC offices because the company disconnected government offices from power.
The government, in a statement signed by the state Commissioner for Information, Culture and Tourism, Wasiu Olatubosun, said the electricity company is owing the government a total of N400 million in the last two years, but however did not deny that the state was also owing the power firm.
Olatubosun added that the government had approached the High Court of Justice in Ibadan to seek an order to seal off the premises of IBEDC “because the company has been ignoring bills served on it by the Oyo State Board of Internal Revenue Services”.
The Commissioner listed the company’s debt as: “Harmonised bills – N139,440,000.00; Infrastructure bills -N22,590,000.00; Tax Audit bill -N116,516,111.41, Signage bill N2 – N2200,000.00, totaling the debt at N400,546,111.41”.
He also said the company has never in any of their communications with the government revenue agency objected to the claim of the figure owed.
“It is important for everyone to remember that it is the duty of all, individuals and businesses, to pay taxes and levies. Without these payments, the government cannot provide basic necessities and perform necessary functions. Therefore, IBEDC like any other business interest, should do the needful and meet its revenue obligations.
“This is the stand of the government and we seek the understanding of the people not to be misled by those who trade in falsehood.”
Olatubosun appealed to other business interests within the state to meet up their obligation to the government in the area of tax and other revenue payments “without being forced”.
