11 billion Naira Controversy: Ogun Government Says No Money Is Missing
Ogun State Government has dismissed reports published by a national newspaper that N11 billion was missing from Tax Revenue collected by consultants engaged by the government from residents living in border towns.
In a statement by Alhaji Yusuph Olaniyonu, Commissioner for Information and Strategy, the government stated that the report was a clear misrepresentation of what transpired when Mr. Babajide Odubanjo, the chairman of the state Board of Internal Revenue Service appeared on Tuesday before the House of Assembly to defend the service’s projections for year 2014.
The Government explained that the total amount of money collected on its behalf by consultants in 2012 was N27.1 million while what was due to the consultants as commission was N11.6 million. The consultants were eventually paid N10.9m after the deduction of five percent withholding tax and one percent administrative charge. The Auditor General‘s report quoted in the House attested to the above stated fact.
“We wonder where the newspapers got the N11b commission and N21 billion total PAYE tax receipt. The figures are fictitious, a clear misrepresentation and inaccurate recording of the events”, it stated.
According to the government,“Contrary to the report in the newspapers, there was no mention of any missing money at the House of Assembly. A legislator asked Mr. Odubanjo about the rate paid as commission to consultants engaged to collect tax in border areas and the OGIRS chairman explained that that the job given to the consultants was a lot different from ordinary Tax Audit assignment”, the government stated.
He added that the assignment given to the consultants included identification, enumeration and registration of companies based in Lagos but which have employees resident in Ogun State. The enumerated companies had either been remitting the taxes of their affected employees to Lagos or not remitting at all.
The government appealed to journalists to always seek for factual information about the state of affairs in Ogun State so as not to allow themselves to be misled by mischievous elements.
It added when the tax revenue hit the roof as we envisaged, we will not misapply or embezzle it. “Rather, we will channel it, as usual, to the numerous development projects in the state which require funding”, it stated.
