Oyo, IBEDC bicker over electricity bills

Oyo State Government on Wednesday sealed the offices of Ibadan Electricity Distribution Company Plc in the state over alleged disconnecting electricity supply to the state secretariat.

The company said the state went ahead to shut its office despite the fact that it was owing N450 million over three years.

John Ayodele, Chief Operating Officer of IBEDC, who said this in a statement on Wednesday explained that the state government is claiming that the company owes its revenue bills and personal income tax.

He stated that IBEDC had written several letters to the state and had held meetings with its officials to remind of the need to pay the debt so that the company would not go under but they failed to pay.

But in a swift reaction, Oyo State government debunked the news making the rounds that the State sealed off the Ibadan Electricity Distribution Company (IBEDC) offices in Ibadan because the company disconnected the government office, saying that the company has been owing revenues totalling over N400 million in the last two years.The State Commissioner for Information, Culture and Tourism, Wasiu Olatubosun in a Press Release made available to journalists on Wednesday, said that the government 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 it by the men of the Oyo State Board of Internal Revenue Service for the past two years.
However the statement of 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 Wednesday 9 February 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.

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“Oyo State Government is owing IBEDC a whopping consumption outstanding of 450 Million Naira for over a period of three years.

” Ayodele explained that the company as part of efforts to get the outstanding pay 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 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 a damaging effect on the business and service delivery to our customers .

“The COO 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.”

But the Olatunbosun broke down the accumulated bills as follows:Harmonised bills N139.4 million, Infrastructure bills N122.5 million,Tax Audit bills N116.5million and Signage bill N22million. All totalling N400.5million The commissioner stated that the IBEDC’s indifference towards the settlement of the bill necessitated the locking and sealing of its major offices in the state.

According to him, the company has never in any of their communication 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,” the Commissioner said. Olatunbosun also noted that documents from the State Board of Internal Revenue Services have shown that bills were served on IBEDC in the past two years (2020-2021) which they have ignored. He maintained that IBEDC never objected to owing accumulated bills, which led the State to seek a legal solution and the High Court of Justice gave the government the warrant to seal off their premises in order to enforce payment, as provided for in Section 45 (3&4) of the Revenue Administration Law of Oyo State.

“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,” he added.Olatubosun used the medium to appeal to other business interests within the State to tow the path of honour by meeting up their obligation to the State government in the area of tax and other revenue payments without being forced.