‘Tax evasion’: Kogi shuts down MTN facilities

The Kogi state government has shut down the facilities of MTN telecommunication in the state for alleged failure to comply with its tax obligation and related matters. The chairman of Kogi state Internal Revenue Service (KGIRS), Salihu Enehe, in conjunction with the Director General Kogi State Utilities Infrastructure Management Compliance Agency ( KUIMCA) , Taofik […]

The Kogi state government has shut down the facilities of MTN telecommunication in the state for alleged failure to comply with its tax obligation and related matters.

The chairman of Kogi state Internal Revenue Service (KGIRS), Salihu Enehe, in conjunction with the Director General Kogi State Utilities Infrastructure Management Compliance Agency ( KUIMCA) , Taofik Idah, disclosed this in Lokoja, the state capital, on Friday.

He said the state appreciated the telecommunication service provider that started operation in 2003 , but its failure to honour the rules and regulations bothering on tax obligation remains the bone of contention .

The KGIRS’s boss who was represented by Hassanatu Salawu, Director MDAS of the agency, said MTN telecommunication refused to accept the result of the verification exercise on the fibre kilometer way conducted by the state government to determine its actual tax obligation, while other service providers, Airtel and Glo accepted, complied and effected settlement.

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“We met in October last year to resolve the grey areas over the verification exercise; the MTN service provider told us that it will study it and get back to us within two weeks. Despite reminders to that effect, the MTN management never came back, rather, they kept telling us they were still on it

“Airtel and Glo were verified , accepted and made payment. As there was no sign of their compliance , we decided to shut down their facilities.

“In our verification exercise, we discovered that MTN has 199, against 40 to 140 fibres kilometer fibres claim by the telecommunication outfit” she said .

In the same vein, the Director General of Kogi state Utilities Infrastructure Management Compliance Agency ( KUIMCA) , Taofik Isah said the present government had respect for investors , but both sides must oblige to observe the rules and regulations to avoid friction in operation and relationship.

“My agency is to enforce compliance to the rules and regulations. We called the attention of MTN service provider to the issue of fibre kilometer verification and auditing, when we found out that the have more than their claim . From all indication, the MTN telecommunication is not ready to comply with our findings”, he said .

However, a very reliable source from the MTN said the state government has taken a haste decision, beside being economical with the true position of things .

The source added that the result of verification exercise is being scrutinesed by the management in attempt to resolve the bone of contention but government suddenly shut down its facilities.

“The contention is the right of ways ,the optic fibres kilometer. We have to sort out those fibres in truck A and B road to avoid double payment. The claimed the telecommunication outfit is owing relatively the sum of N1.3b , covering the 2019 to 2024 period . The figure is outrageous. The negotiation is ongoing to filter out the grey areas to arrive at compromise for settlement.

“The decision is haste, as we expected the state government to weigh the best option to avoid its negative impact on the people. The decision is affecting everything in the state: economic, students and security” , said the source who asked for cover .

Recalled that the service of MTN in Kogi went off air since two weeks, crippling business and other related activities.