Tit for tat as Oyo govt, IBEDC clash over debts

A drama ensued between the Oyo State government and the management of the Ibadan Electricity Distribution Company Wednesday over the government’s non-payment of N450 million electricity debt.

The electricity company disconnected the state government secretariat’s power supply over the unpaid debt. In retaliation, the Oyo State Bureau of Internal Revenue sealed off offices of IBEDC over “non-payment of accumulated tax.”

IBDEC described the sealing off of its office as “arm twisting tactics instead of paying the debt owed”.

The company in a statement by its Chief Operating Officer, John Ayodele, said the owed N450 million is for a period of three years.

He explained that the company, as part of efforts to get the outstanding debts paid, initiated several engagements through correspondences and physical meetings, but all 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 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,” Mr Ayodele said in the statement.

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

Oyo govt: IBEDC owes ‘over N400 million’

In its reaction, the state government denied claims that it sealed off the IBDEC offices because the company disconnected government offices from power.

The government also said the electricity company is owing the government a total of N400 million in the last two years.

The government said this through a statement, signed by the state Commissioner for Information, Culture and Tourism, Wasiu Olatubosun, on Wednesday. He did not deny that the state was owing the power firm.

Mr 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.

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“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.”

Mr 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”.

Asked by PREMIUM TIMES about the government’s claims that IBEDC owes N400 million, Busola Tunwase, the company’s spokesperson, said she cannot respond to the question.